On Saturday (August 30), the second day of Indian Prime Minister Modi’s visit to Japan, he and Japanese Prime Minister Shiro were on a bullet train to Sendai, Japan, to visit the semiconductor (chip) factory of Tokyo Electron in Sendai. Previously, the two countries had committed to enhance cooperation in the semiconductor field.
According to a statement from the Indian Ministry of External Affairs, Modi was briefed on the role of the Tokyo Electron semiconductor factory “TEL Miyagi” in the global semiconductor value chain, its advanced manufacturing capabilities, and the ongoing and planned cooperation with India.
Modi stated on the social media platform X, “The semiconductor industry is a key area of cooperation between India and Japan. In recent years, India has made significant progress in this field.”
The Indian Ministry of External Affairs highlighted that the trip to Sendai showcased India’s evolving ecosystem in semiconductor manufacturing and the complementary relationship between India’s growing semiconductor manufacturing capabilities and Japan’s advanced semiconductor equipment and technological advantages.
According to Nikkei Asia, analysts believe that deepening chip cooperation between India and Japan holds significant importance as semiconductors play an increasingly crucial role in the manufacturing of automobiles, telecommunications equipment, and electronic products, and are key to the automation industry.
Shamshad Ahmad Khan, an expert on India-Japan relations and Assistant Professor of International Relations at BITS Pilani Dubai Campus in the UAE, mentioned that the cooperation between India and Japan would bring benefits in various aspects.
He told Nikkei Asia, “Firstly, manufacturing semiconductor chips domestically in India would help reduce the country’s dependence on imports, whereas semiconductor manufacturing countries are currently considering them as ‘strategic tools’ to meet their respective national interests.”
Khan also stated that this cooperation would be mutually beneficial for both countries. Japan would leverage India’s skilled engineers to lower manufacturing costs, and India would become a part of the global semiconductor supply chain.
Shiro and Modi held a bilateral summit at the Prime Minister’s Office in Japan on Friday. The two leaders pledged to strengthen defense cooperation, energy cooperation, supply chains, investments in the Indo-Pacific region, and expand cooperation in artificial intelligence (AI), space, high-speed rail, and other technological areas over the next decade.
They released a “Joint Vision” outlining the direction of cooperation for the next decade. Japan’s private investments in India are set to increase from approximately USD 2.7 billion annually in the 2010s to around USD 6.8 billion per year in the coming decade.
The two leaders also agreed to increase the number of worker and student exchanges to 500,000 over the next five years. Both governments hope that India’s young workforce can help address Japan’s issues of aging population and labor shortages. Modi stated at a press conference, “We believe that Japan’s technology and India’s talent are a recipe for success.”
Modi’s visit to Japan is part of efforts to strengthen India’s diplomatic relations and garner support for its “Make in India” initiative.