August 29, 2025: Japan and India are reportedly moving ahead with plans to relocate the production of older semiconductor and LCD screen technologies to India. The decision is aimed at reducing reliance on Chinese manufacturing while enhancing economic security and resilience in supply chains.
The focus will be on mature semiconductor and LCD technologies, which do not require cutting-edge manufacturing processes. These established technologies can be transferred using existing facilities, allowing India to ramp up production quickly. Officials believe that the move will help both nations reduce supply chain risks and strengthen bilateral industrial cooperation.
This initiative is part of a larger effort to deepen Japan-India economic ties. In 2023, the two countries signed a Memorandum of Cooperation targeting semiconductor supply chains, covering research, design, manufacturing, and workforce development. The collaboration aligns with India’s “Make in India” program and Japan’s vision of technological self-reliance, aiming to build a strong and diversified manufacturing base.
Industry analysts say that moving production to India will enhance regional stability by reducing dependence on a single country. Challenges remain, including the need to develop skilled talent and expand local technological capabilities. Japan’s expertise is expected to assist India in overcoming these obstacles through training, technology transfer, and joint research.
The relocation is anticipated to strengthen India’s role in global semiconductor manufacturing and reinforce economic ties with Japan. Experts believe the partnership could serve as a model for securing critical technology supply chains while supporting regional economic stability.
