Japan and India agree to strengthen chip supply chains

Japan and India agreed to strengthen semiconductor supply chains, in order to increase economic security, to counter China’s growing influence in the Indo-Pacific region and beyond.

Japan’s Minister of Economy, Trade and Industry, Yasutoshi Nishimura, and India’s Minister of Electronics and Information Technology, Ashwini Vaishnao, signed a memorandum of understanding on Thursday in New Delhi, according to Japan’s Kyodo News Agency on Friday.

The agreement came as Japan aims to deepen partnerships with allies and like-minded states to develop more flexible supply chains for vital products and materials, including chips, batteries and minerals, in order to meet the growing geopolitical and economic security challenges posed by China and Russia.

Japan lags behind global competitors in the ability to manufacture full semiconductor products, although it has the advantage of producing certain materials, as well as having chip manufacturing equipment.

India seeks to increase its domestic semiconductor production capabilities, as it relies on China for most of its imports despite their strained relations due to a border dispute.

Tensions between India and China along the disputed border escalated in June 2020 to the worst clashes in more than 40 years, killing at least 20 Indian soldiers and 4 Chinese soldiers.