Japan and India have recently signed a Memorandum of Cooperation (MOC) to construct a regional semiconductor supply chain and bolster their alliance in response to China's growing influence in the Asia-Pacific region, as reported by the Economic Daily on July 17. The agreement between India and Japan aims to enhance the relations of the quad alliance, which includes the United States, Japan, India, and Australia, focusing on semiconductor development, manufacturing, research and development (R&D), design, and talent development. Japan will contribute advanced semiconductor manufacturing equipment and materials, while India offers a large pool of highly skilled professionals. Together, they aim to establish a mutually beneficial relationship.
According to predictions from the Market Intelligence & Consulting Institute (MIC), the global semiconductor market is expected to experience a 4.1% year-on-year decline, reaching approximately US$556.6 billion in 2023. Additionally, the shipment value of the Taiwanese semiconductor industry is projected to reach NT$41.1 billion (US$1.37 billion) in the same year, representing a 6.9% year-on-year decrease. MIC, established in 1987, is a division of the Institute for Information Industry (III), a prominent government think tank and one of the leading IT research institutes in Taiwan.