Japan and India to Collaborate on Chip and Hydrogen Development

Japan and India to Collaborate on Chip and Hydrogen Development

According to Nikkei, Japan, and India are planning to collaborate in advanced industries like semiconductors and hydrogen fuel. Tokyo also aims to assist in New Delhi’s infrastructure development.

Yasutoshi Nishimura, Japan’s Minister of Economics, Trade, and Industry, is scheduled to visit India to meet with Raj Kumar Singh, Minister of Power and New and Renewable Energy, and Ashwini Vaishnaw, Minister of Information Technology.

The two countries are expected to sign a memorandum of understanding to establish a new framework for expanding collaboration between their private sectors in advanced industries. They will work together on incentives and regulations to encourage joint ventures.

Japan and India will share details about eligible technologies for subsidies in the semiconductor industry. They plan to invest in their respective areas of expertise, such as technology and material research or professional training, to create a robust supply chain.

India has been actively promoting investments in its semiconductor industry due to tensions between the United States and China. In 2021, India allocated $10 billion in incentives to attract foreign chipmakers. A previous MOU with the US was aimed at enhancing semiconductor collaboration.

For the semiconductor business to flourish, both water and electrical infrastructure are crucial. Japan aims to support India technologically and provide information on the Indian business climate through dialogues.

The two parties are also working on reaching an agreement on safety standards for hydrogen transportation in the industry. India has a strong focus on solar energy and has integrated the production of green hydrogen into its national policy.

However, India faces challenges in the form of limited hydrogen delivery infrastructure and stringent regulations. Japan seeks to advocate for more flexible regulations in India to facilitate collaboration in the hydrogen sector.