EDITORIAL ANALYSIS : A ‘fab’ way to conduct India-Japan tech diplomacy – INSIGHTSIAS

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Source: The Hindu

  • Prelims: Current events of international importance, India-Japan relations, INSC, semiconductors, Technology transfer, quad etc
  • Mains GS Paper II: Bilateral, regional and global grouping involving India or affecting India’s interests etc

 

ARTICLE HIGHLIGHTS

  • India and Japan agreed to collaborate on semiconductors in a bid to create a more resilient supply chain for this critical technology and work together for the joint development of the semiconductor ecosystem.

 

Puucho ON THE ISSUE

Context

Indo-Japan relations:

  • Japan is regarded as a key partner in India’s economic transformation.
  • In the recent past, the India Japan relationship has transformed to a partnership of great substance and purpose.
  • Japan’s interest in India is increasing due to a variety of reasons including India’s large and growing market and its resources, especially the human resources.
  • Within India: Japan has been a leading financial donor in the form of ODA (Official Development Assistance) to India.
    • It continues to maintain a high degree of interest and support for India’s mega infrastructure projects like:
      • Delhi-Mumbai Freight Corridor
      • Delhi-Mumbai Industrial Corridor
      • Chennai-Bangalore Industrial Corridor
      • Ahmedabad-Mumbai High Speed Rail
    • Outside India:
      • Asia-Africa Growth Corridor (AAGR) announced in 2017
      • Joint projects in some third countries like Bangladesh, Myanmar, and Sri Lanka and in Africa as well will be taken jointly.
    • Defense ties:
      • Quadrilateral Security Dialogue is a strategic dialogue between India, United States, Japan and Australia will be carried out.
      • Malabar exercise has been carried by India, Japan and USA on a continuous basis.
      • 2+2 dialogue at the defense and foreign minister level.

 

Focus areas in semiconductor development between India and Japan:

  • Semiconductor design and manufacturing
  • Equipment research
  • Establishing resilience in the semiconductor supply chain
  • Talent development
    • Paving the way for government-to-government and industry-to-industry collaborations.

 

Importance of the deal:

  • It will prompt the need for growing the pool of talent available in the industry alongside increasing the number of semiconductor fabrication plants (fabs).
  • The partnership fosters the exchange of technical knowledge, research, and innovation between the Indian and Japanese semiconductor industries
    • It facilitates technology transfer
  • It enables India and Japan to stay at the forefront of semiconductor advancements.
  • The collaboration stands as a testament to the power of strategic alliances and technological synergy.
  • Both nations recognise the critical importance of semiconductor technology in driving innovation, economic growth, and national security.
  • Japan, with its advanced semiconductor industry, has long been a global leader in chip manufacturing and research.
    • India has a growing information technology sector and a burgeoning demand for semiconductor products across industries.
    • The convergence of these strengths has laid the foundation for a mutually beneficial collaboration.
  • Joint research initiatives enable the pooling of resources and expertise to tackle complex challenges in semiconductor design, manufacturing processes, and materials science.
  • The collaborative approach accelerates both innovation and the development of cutting-edge solutions.
  • The partnership emphasizes human resource development through skill exchange programmes, workshops, and training.

 

Steps taken by India and Japan for the semiconductor collaboration:

  • Both nations have aligned their policies to support semiconductor manufacturing and research.
  • India’s “Make in India” initiative and Japan’s “Society 5.0” vision share the goal of technological self-reliance and innovation-driven growth.
  • Bilateral agreements signed to promote technology transfer, cooperation in semiconductor research, and reciprocal trade in semiconductor-related products.

 

Other collaborations by India around semiconductor:

  • United States and India covers investment, innovation, and workforce development, facilitating the long-term strategic development of complementary semiconductor ecosystems.
  • As part of the agreement with the US: India is set to sign an agreement with Georgia Tech University.
  • Investments by Micron Technology and Applied Materials to set up a semiconductor unit and a research and development center.

 

Restriction over semiconductor manufacturing :

  • S.’s CHIPS and Science Act of 2022: It places strategic curbs on the expansion of semiconductor manufacturing by countries posing a direct threat to the U.S., including China
  • Japan and the Netherlands restricted exports of semiconductor manufacturing materials required in the making of advanced chips to China.

 

Way Forward

  • The India-Japan partnership is poised to play a pivotal role in shaping the global semiconductor landscape.
  • As technology continues to evolve, their collaboration will remain dynamic, addressing new challenges such as
    • semiconductor miniaturization
    • AI integration
    • quantum computing.
  • The partnership will have far-reaching implications for the global technology ecosystem and the dimensions of geopolitical partnerships in the Indo-Pacific.
  • The bilateral agreements of both Washington and Tokyo with India:
    • It demonstrates the consolidation among like-minded partners in the Indo-Pacific towards critical technologies vis-à-vis geostrategic and national security concerns.
  • The partnership with India is significant as a means of diversifying the landscape of the semiconductor industry.
  • Both agreements indicate the confidence placed in India by the two Quad countries: It signals the coming of age of India’s own capabilities in the development of semiconductors and related technologies.
  • By combining Japan’s technological prowess and India’s innovation and design capacities, the collaboration on semiconductors paves the way for a future characterized by advanced electronics and enhanced connectivity

 

QUESTION FOR PRACTICE

Quadrilateral Security Dialogue is transforming itself into a trade block from the military alliance, in present times. Discuss(UPSC 2020) (200 WORDS, 10 MARKS)

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