India-Japan Chip Supply Chain Partnership Approved by Cabinet

30 Oct 2023 CW Team

The Indian Cabinet has given its approval to a strategic partnership between India and Japan to establish a chip supply chain. With the increasing demand for semiconductors globally and the ongoing chip shortage, this collaboration aims to strengthen the supply chain and meet the growing market needs.

This partnership between the two nations is expected to foster cooperation in the fields of microprocessors, capital investment, and research and development, to reduce the reliance on countries like Taiwan and South Korea for chip imports. It will also enhance the domestic production capacity and boost the Make in India initiative.

As India aims to become a global manufacturing hub and deepen its technological capabilities, Japan's expertise in the chip industry will play a pivotal role. The collaboration will lead to technology transfer, knowledge exchange, and joint research and development projects, allowing India to acquire state-of-the-art chip manufacturing technologies and strengthen its position in the global semiconductor market.

The chip shortage has severely affected various industries, including automotive, electronics, and telecommunications, causing production delays and escalating prices. With this collaboration, both India and Japan aim to counter

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