India and Japan have signed a memorandum of understanding (MoU) to collaborate on semiconductor development. The agreement was signed in New Delhi on July 20, 2023, by India's Minister for Electronics and IT, Ashwini Vaishnaw, and Japan's Minister of Economy, Trade and Industry, Yasutoshi Nishimura.

The MoU covers various aspects of semiconductor development, including design, manufacturing, equipment research, talent development, and supply chain resilience.

Vaishnaw stated that this agreement is a significant step towards creating a strong and comprehensive value chain in the rapidly growing semiconductor industry, which is expected to reach$1 billion within the next five to six years. He further emphasized about India's design capabilities, boasting over 50 unique designs, which make it an attractive destination for semiconductor manufacturing.

This news follows recent investments in India by leading US semiconductor companies like Micron Technology and Applied Materials, totalling$2.75 billion and$400 million, respectively. These investments demonstrate India's ambition to become a global semiconductor hub in the future.