Prime Minister Narendra Modi’s recent visit to Japan on August 31, 2025, marks a significant milestone in advancing technological collaboration between India and Japan, with a strong focus on semiconductor manufacturing, advanced technology, and resilient supply chains.

The visit, the first in seven years since 2018, comes at a strategically crucial juncture when the global economy is recalibrating technological and economic partnerships in response to supply chain disruptions, geopolitical challenges, and the race for leadership in high-tech sectors.

During the visit, Prime Minister Modi engaged closely with leaders of the Japanese technology and manufacturing ecosystem, including executives of Tokyo Electron, one of Japan’s flagship semiconductor equipment and wafer manufacturing companies.

This visit reaffirmed India’s intent to position itself as a trusted partner for global semiconductor players while aligning with Japan’s strengths in materials, manufacturing machinery, and advanced semiconductor technology. Kazuya Nakajo, Executive Vice President of JETRO (Japan External Trade Organisation), emphasised that Japan’s role in the global semiconductor sector is pivotal, with the country supplying nearly 50 percent of semiconductor materials and one-third of semiconductor machinery to leading economies such as the U.S., China, Taiwan, and South Korea. The visit opens a new chapter, with Japan now extending its expertise and supply chain integration to India.

A major highlight of the discussions was India’s current dependence on semiconductor imports, particularly from China, which accounts for nearly one-third of India’s imports in this sector. Recognising this vulnerability, Prime Minister Modi reiterated his government’s policy push toward supply chain resilience and fostering self-reliance under the “Make in India” and “Atmanirbhar Bharat” initiatives.

The Indian semiconductor policy, coupled with production-linked incentives (PLI) and foreign collaboration, aims to create a robust domestic ecosystem encompassing design, manufacturing, testing, and R&D.

Nakajo underlined that India’s massive consumer market and pro-business reforms have already catalysed an investment surge. Between 2017 and 2020, India received 22 semiconductor-related investments, which increased to 58 between 2021 and 2024, demonstrating growing investor confidence in India as a semiconductor hub.

The timing of the visit also holds symbolic and strategic importance. The post-pandemic recovery phase has seen nations realigning partnerships for technology resilience, and Japan’s business community is viewing India as a reliable and long-term partner.

The renewed cooperation not only revolves around semiconductors but also extends to artificial intelligence (AI), quantum computing, space technology, and collaborative research between academic institutions, reflecting a maturing and diversified high-technology partnership.

According to Nakajo, these collaborations are aligned with the global trend of securing high-tech supply chains and driving innovation-led development, which will strongly benefit India’s growth trajectory while simultaneously reinforcing Japan’s global standing.

Another dimension highlighted during the interactions was India’s growing role as a talent destination. While countries such as the U.S. and Europe have been engaging Indian talent for decades, Japan, comparatively, is a late entrant in this race.

However, efforts are now being made by Japanese corporations to make their society more livable for Indian professionals, recognising the critical role of human capital in advancing innovation. Initiatives are underway to establish global creation centres in India by Japanese firms, which will not only strengthen collaboration but also build long-term people-to-people ties and encourage knowledge transfer.

The cumulative impact of these initiatives points toward a transformed India–Japan strategic partnership, with technology cooperation serving as a central pillar of bilateral relations. For India, this partnership provides access to cutting-edge semiconductor machinery, materials, and know-how, crucial for reducing import dependence and nurturing domestic champions.

For Japan, India offers a vast market, engineering talent pool, and a stable geopolitical partner that complements its broader Indo-Pacific economic and security objectives. The visit also reflects a broader regional strategy where nations are working toward reducing over-reliance on one nation for supply chains—particularly China—by creating diversified, resilient, and secure technology networks.

Prime Minister Modi concluded his two-day visit by describing it as "productive," reflecting the substantial outcomes achieved. He expressed gratitude towards Japanese Prime Minister Shigeru Ishiba and the Japanese people for their warmth and partnership.

His message highlighted not only the immediate gains from the visit but also the long-term vision of building an India–Japan technological alliance that can shape the future of the semiconductor industry and frontier technologies.

The India–Japan partnership in semiconductors and other advanced sectors is entering a decisive phase, with both nations leveraging complementary strengths—India’s market and talent on one side, and Japan’s technological depth and global supply chain leadership on the other.

This collaboration is set to create a strong, future-ready framework for industrial development, innovation, and strategic resilience, benefiting not just the two nations but also contributing to the stability and advancement of the wider Indo-Pacific region.

Based On ANI Report