Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

A ‘fab’ way to conduct India-Japan tech diplomacy

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Semiconductor and its applications

Mains level: India-Japan semiconductor collaboration and its significance

What’s the news?

  • In July 2023, India and Japan announced a landmark collaboration aimed at bolstering the semiconductor sector’s resilience and jointly developing the semiconductor ecosystem.

Central idea

  • India and Japan’s pioneering collaboration aims to fortify their semiconductor industries and drive joint innovation in semiconductor design, manufacturing, equipment research, supply chain resilience, and talent development. This strategic partnership signifies a noteworthy advancement in both government-to-government and industry-to-industry engagements.

What are semiconductors?

  • Semiconductors are a class of materials that exhibit the unique property of electrical conductivity, lying between conductors and insulators.
  • Unlike conductors, which allow electricity to flow freely through them, and insulators, which do not conduct electricity at all, semiconductors have an intermediate level of electrical conductivity.

Semiconductor fabrication

  • Semiconductor fabrication, also known as semiconductor manufacturing or semiconductor processing, refers to the intricate process of creating semiconductor devices, such as integrated circuits (ICs), microchips, and other electronic components.
  • These devices are the building blocks of modern electronics and play a crucial role in various technologies, including computers, smartphones, televisions, and many other electronic devices.

The India-Japan Semiconductor Collaboration and a Strategic Policy Alignment

  • Common Vision and Agreements:
    • India’s Make in India and Japan’s Society 5.0 visions converge in the pursuit of self-reliance and innovation.
    • Bilateral agreements have been signed for technology transfer, cooperative semiconductor research, and reciprocal trade in related products.
  • Industry Leadership:
    • Japan’s advanced semiconductor industry’s global prominence complements India’s growing IT sector and rising demand for semiconductors across industries.
    • Their complementary strengths lay the groundwork for a mutually beneficial collaboration.
  • Addressing Challenges:
    • Geopolitical tensions and supply chain disruptions in the Indo-Pacific region highlight the need for diversified semiconductor supply chains and international collaboration.
    • Joint research efforts combine resources and expertise to address complex semiconductor design, manufacturing, and material challenges.
  • Human Resource Development:
    • Skill exchange programs, workshops, and training initiatives underline the commitment to cultivating skilled professionals.
    • The emphasis is on preparing the workforce for the evolving semiconductor landscape.

What are the challenges?

  • Technological Challenges:
    • Semiconductor Miniaturization: The challenge of creating smaller and more powerful semiconductor components to meet the increasing demand for compact and efficient devices
    • AI Integration: Integrating artificial intelligence into various applications requires specialized semiconductors that can handle complex AI algorithms efficiently. Developing such chips is challenging due to the need for high computational power and energy efficiency to accommodate AI workloads effectively.
    • Quantum Computing: Quantum computing, a cutting-edge technology, relies on quantum bits (qubits) for enhanced computational capabilities. Developing stable and reliable qubits is a challenge due to the delicate nature of quantum states and the need for advanced error correction mechanisms.
  • Supply Chain Resilience:
    • Disruptions in Semiconductor Supply Chains: The article highlights disruptions caused by supply chain vulnerabilities due to factors such as geopolitical tensions and natural disasters. Collaborations between nations like India and Japan aim to strengthen semiconductor supply chains to minimize such vulnerabilities.
  • Geopolitical Uncertainties:
    • Tensions in the Indo-Pacific Region: Geopolitical tensions in the Indo-Pacific region impact trade, technology transfer, and collaborations. The partnership between India and Japan reflects the need for like-minded countries to work together amidst such uncertainties.
  • Talent Shortage:
    • Shortage of Skilled Professionals: The article does not explicitly mention a shortage of skilled professionals in the semiconductor industry. However, the skill exchange programs and training mentioned in the article suggest that developing a skilled workforce is a priority for the partnership.

Indo-US Collaboration and the Emerging Landscape

  • Technology Partnership: The technology partnership between India and the United States encompasses investment, innovation, and workforce development. This collaboration underscores both countries’ commitment to advancing their semiconductor ecosystems in a strategic and comprehensive manner.
  • Academic Involvement: India is set to sign an agreement with Georgia Tech University, demonstrating a focus on academia-industry collaboration to foster semiconductor research and talent development.
  • Private Sector Investments: The partnership is reinforced by specific investments from Micron Technology and Applied Materials to establish semiconductor manufacturing units and research centers, signaling tangible private sector involvement.
  • Global Implications: The collaboration reflects global recognition of India’s semiconductor capabilities by the United States, positioning India as a significant player in semiconductor development on the global stage.
  • Supply Chain Resilience: The partnership’s emphasis on investment and innovation aligns with the broader goal of diversifying semiconductor supply chains, reducing dependencies, and enhancing resilience.
  • Complementary Collaborations: The collaboration complements India’s partnership with Japan, creating a multidimensional approach that addresses diverse aspects of the semiconductor landscape.

Conclusion

  • The India-Japan semiconductor partnership signifies a paradigm shift in global technology alliances. This collaboration not only holds the potential to reshape the semiconductor landscape but also contributes to regional stability and innovation. As India and Japan march forward hand in hand, their combined efforts promise to shape a future characterized by cutting-edge technologies and a shared resolve to achieve new frontiers of technological brilliance.

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