India-Japan Semiconductor and AI Cooperation Gains Momentum; Goyal and Akazawa Agree to Accelerate CEPA Review.
Tokyo:
Union Minister of Commerce and Industry Piyush Goyal chaired an India-Japan industry roundtable on semiconductors and artificial intelligence (AI) in Tokyo, highlighting the growing strategic importance of the two sectors in strengthening economic and technological cooperation between the two countries.
The roundtable brought together representatives of around 21 leading Japanese companies, along with Indian business chambers and business delegations. The discussions focused on expanding investment, manufacturing, innovation, technology partnerships and industrial cooperation in semiconductors and AI.
Goyal said semiconductors and AI are emerging as key areas of India-Japan cooperation and constitute an important pillar of the economic security partnership envisaged by Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi during their Annual Summit.
He assured Japanese industry representatives of the Government of India’s full support in deepening and expanding collaboration between the two countries in these strategic sectors.
India’s semiconductor market offers major opportunities
Goyal highlighted the rapidly expanding opportunities in India’s semiconductor sector, noting that domestic semiconductor demand is projected to reach USD 150 billion by 2032.
He outlined India’s comprehensive semiconductor strategy, covering chip design, semiconductor machinery and materials, fabrication, assembly, testing, marking and packaging (ATMP/OSAT), research and development, and talent development.
The government has committed USD 10 billion under Semicon India 1.0, with an additional USD 15 billion under Semicon India 2.0, aimed at catalysing large-scale investments and building a comprehensive semiconductor ecosystem in the country.
Goyal emphasised the potential to combine India’s large pool of skilled professionals with Japan’s advanced technologies, engineering capabilities and industrial expertise. He said such complementarities could generate new opportunities for investment, innovation, manufacturing and technology partnerships.
Japanese companies reaffirm commitment to India
The roundtable was attended by representatives of several leading Japanese companies, including Tokyo Electron, Daifuku, Preferred Networks, ABEJA, MinebeaMitsumi, Tanaka Precious Metals Technologies, Fujifilm Holdings, Toray Industries, Nippon Express Holdings, Mizuho Financial Group, Kyocera Corporation, Fuji Electric, TOK, Air Water Inc., ROHM, Tomoegawa Corporation, MUFG Bank, NEC Corporation, Yamaya Electronics, ANA Trading and JETRO.
Participating companies expressed confidence in the growing opportunities in India’s semiconductor and AI sectors and reaffirmed their commitment to Make in India, Design in India and Develop in India.
The companies also briefed Goyal on their operations, technological capabilities and project execution in the relevant sectors.
Responding to the concerns and suggestions raised by Japanese industry representatives, Goyal assured them that the Government of India would proactively address the issues raised.
He said India recognises the significant potential of its partnership with Japan in semiconductors and AI and would work closely with industry through the Embassy of India in Tokyo and the concerned ministries and departments in New Delhi to facilitate outcomes on a fast-track basis.
India and Japan agree to accelerate CEPA review
Earlier on August 25, Goyal held a bilateral meeting in Tokyo with Japan’s Minister of Economy, Trade and Industry, Akazawa Ryosei.
The two ministers reviewed the progress of bilateral economic cooperation, including trade and investment, and agreed on the need to accelerate the review of the India-Japan Comprehensive Economic Partnership Agreement (CEPA).
The ministers discussed making the CEPA more forward-looking and responsive to emerging economic opportunities and changing business and trade dynamics.
They also exchanged views on cooperation in new and emerging sectors, next-generation industries, manufacturing, technology and innovation.
The two sides noted steady progress towards achieving the target of JPY 10 trillion in private investment from Japan to India, a goal aimed at further strengthening economic ties between the two countries.
The latest discussions underscore the expanding India-Japan economic partnership, with semiconductors, AI, advanced manufacturing, technology and investment emerging as key areas of future cooperation.
