Pankaj Singh Bisht, Jadetimes Staff
Pankaj is a Jadetimes news reporter covering Business News.
A Step Towards Atmanirbhar Bharat
The vision of Atmanirbhar Bharat is to make India self-reliant in semiconductor manufacturing. With global demand for semiconductors surging due to AI, 5G, and automotive technology advancements, the Indian market is becoming a promising investment opportunity.
Japanese companies, in fact, with the skills for precision engineering and other advanced technologies, would be excellent players in this direction. Together, they could help India harness a growing pool of talent, low costs, and expanding digital infrastructure.
Why India is the Favourite for Japan
There are various reasons why Japan is looking for investment in the Indian semiconductor space:
Increasing Market Opportunities: The country has an ever-growing consumer electronics and automotive industries, thus requiring a significant demand for semiconductors. It has become a vital market for Japanese manufacturers.
Government Incentives: The Indian government has launched several schemes, such as the Production Linked Incentive (PLI) scheme, which provides significant financial incentives and subsidies to companies establishing fabrication units.
Strategic Partnerships: The Comprehensive Economic Partnership Agreement (CEPA) between India and Japan is a framework for deeper economic cooperation, reducing trade barriers, and facilitating smoother investment flows.
Global Semiconductor Supply Chain Diversification: The COVID-19 pandemic highlighted vulnerabilities in the semiconductor supply chain, particularly its heavy reliance on East Asia. Japanese firms view India as a strategic partner to diversify production and mitigate risks.
India's Aspiration for Semiconductor Self-Reliance
India's goal of developing 10 semiconductor manufacturing plants in the next decade is ambitious and achievable. To achieve this goal, the proactive measures of the government, like setting up semiconductor parks and encouraging collaborations with global firms, are critical.
Focus areas would be on Fab Units: to set up fabs that can produce quality chips for any application, whether it is in a smartphone or an electric vehicle.
R&D Centers: To establish research and development centers that innovate state-of-the-art semiconductor technologies.
Workforce Development: Engineer and technician training to fulfill the specialized requirements of the semiconductor industry.
The Way Forward
For Japanese companies, entering the Indian semiconductor market is a very big opportunity, but it also brings challenges. Gaps in infrastructure, high initial capital costs, and a need for a robust supply chain ecosystem are areas that need to be addressed. However, mutual benefits make this collaboration worthwhile.
By combining Japan's technological expertise with India's growing market and policy support, the partnership could become a global benchmark in semiconductor manufacturing. The success of these initiatives could not only meet domestic demand but also position India as a key exporter in the global semiconductor value chain.
The interest of Japanese companies in the semiconductor sector in India marks one of the most momentous steps of the country's journey towards being technologically independent. With the correct policies, partnership, and investments, India could realize its dream of becoming a global hub for semiconductors while promoting economic development and technological excellence for decades ahead.
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