India-Japan pact on semiconductor supply chain gets Cabinet green light

Japanese government-backed semiconductor venture Rapidus is likely to be a major element of the new partnership

The Union Cabinet on Wednesday approved a memorandum of cooperation (MoC) between India and Japan on developing a semiconductor supply chain partnership. This pact would focus on research and development (R&D), manufacturing, design, and talent development for the industry.

Signed in July this year, the MoC intends to strengthen cooperation between the two countries both on inter-governmental as well as business-to-business partnerships to advance resilient semiconductor supply chains and leverage complementary strengths.

The MoC has come into effect from the date of signature of the parties and will remain in force for five years.

According to the new pact, India and Japan will