India-Japan business mission to focus on semiconductors, electronics; MoUs expected during visit: FICCI
A large Indian business delegation is visiting Japan, with industry body FICCI (Federation of Indian Chambers of Commerce and Industry) coordinating private-sector participation.
Semiconductors and electronics have been identified as priority sectors for enhanced India-Japan cooperation during the visit.
Multiple Memoranda of Understanding (MoUs) are expected to be signed during the mission, with some already finalised ahead of the visit.
The mission is framed as advancing both countries' broader strategic partnership through deepened business-to-business engagement and addressing shared industry priorities.
FICCI — India's Apex Industry Chamber
The Federation of Indian Chambers of Commerce and Industry (FICCI) was established in 1927, formally commencing operations on 1 February 1927, making it India's oldest and largest apex business organisation. It is a non-government, not-for-profit body representing private and public sector corporates, MNCs, and regional chambers — distinct from government trade-promotion bodies, and distinct from sectoral councils such as EEPC (Engineering Export Promotion Council) or ESC (Electronics and Computer Software Export Promotion Council).
Key Details
- Founded: 1927 (formally began functioning 1 February 1927), following a resolution at the Indian Industrial and Commercial Congress in Calcutta.
- Non-governmental, not-for-profit apex chamber; membership base draws from private and public corporate sectors and multinational companies, reaching several lakh members through regional chambers.
- Distinct from CII (Confederation of Indian Industry, est. 1895 in earlier form, restructured 1992) and ASSOCHAM (est. 1920) — India's other two major apex industry chambers.
FICCI's role in coordinating the delegation illustrates how apex industry chambers function as institutional intermediaries between government trade diplomacy and private-sector business engagement in bilateral economic missions.
India Semiconductor Mission (ISM) and Semicon India Programme
The India Semiconductor Mission was approved in December 2021 with a financial outlay of ₹76,000 crore to build a domestic semiconductor and display manufacturing ecosystem, offering fiscal support of up to 50% of project cost for eligible fabrication, display, compound semiconductor, and packaging (ATMP/OSAT) units. ISM operates as a specialised business division under the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY).
Key Details
- ISM approved: December 2021; outlay: ₹76,000 crore, with fiscal support up to 50% of project cost.
- As of the mission's ongoing rollout, roughly 10 semiconductor projects (fabs, OSAT, and ATMP/packaging units) have been approved with cumulative committed investment of approximately ₹1.6 lakh crore, spanning states including Gujarat (Dholera, Sanand) and Assam.
- Key approved projects include Tata Electronics' fabrication facility at Dholera, Gujarat, and Micron's assembly/test facility at Sanand, Gujarat.
Semiconductors are the headline sector for this business mission, aligning with the government's ISM-driven push to draw foreign (including Japanese) capital and technology partnerships into India's domestic fab and packaging ecosystem.
Electronics System Design and Manufacturing (ESDM) and the PLI Scheme
India's push in electronics manufacturing is anchored by the Production-Linked Incentive (PLI) Scheme for Large-Scale Electronics Manufacturing and the National Policy on Electronics (NPE), 2019, which together aim to position India as a global hub for Electronics System Design and Manufacturing (ESDM) — covering mobile phone manufacturing, components, and downstream electronics value chains.
Key Details
- National Policy on Electronics: 2019, sets the vision for a $400 billion ESDM industry and India as a global ESDM hub.
- PLI Scheme for large-scale electronics manufacturing incentivises incremental production of mobile phones and specified electronic components.
- PLI schemes across sectors (including electronics) have collectively drawn over ₹1.6 lakh crore in investment and generated substantial incremental production and exports since launch.
Electronics, alongside semiconductors, is explicitly named as a focus sector for the mission — reflecting how India's ESDM/PLI policy framework is used as the pitch to attract Japanese electronics-sector investment and joint ventures.
Japan's Position in the Global Semiconductor Supply Chain
Japan does not lead in advanced chip fabrication (dominated by Taiwan and South Korea) but holds a dominant position in upstream semiconductor materials and fabrication equipment — segments critical to any country, including India, building a fab ecosystem from scratch.
Key Details
- Japan holds roughly a 50% global market share in photoresists (with Japanese firms controlling over 90% of the high-end/EUV photoresist segment) and roughly 53% in silicon wafers, through firms such as Shin-Etsu Chemical, SUMCO, JSR, and Tokyo Ohka Kogyo.
- Japan also holds a leading global share in semiconductor fabrication equipment sub-segments such as coater/developers (Tokyo Electron, Screen Holdings).
- This materials-and-equipment strength complements India's fab/packaging build-out under ISM, where India currently depends on imported specialty chemicals, gases, and equipment.
Japan's structural strength in semiconductor materials and equipment — rather than in finished chip fabrication — is precisely why it is a natural complementary partner for India's semiconductor ambitions, explaining the sector's prioritisation in this business mission.
- FICCI founded: 1927; India's oldest and largest apex business chamber.
- India Semiconductor Mission (ISM): approved December 2021; outlay ₹76,000 crore; ~10 projects approved with cumulative investment of approximately ₹1.6 lakh crore.
- Key approved semiconductor projects: Tata Electronics fab at Dholera (Gujarat); Micron facility at Sanand (Gujarat).
- National Policy on Electronics: 2019; envisions a $400 billion ESDM industry.
- Japan's global market share: ~50% in photoresists (over 90% in high-end/EUV photoresists); ~53% in silicon wafers.
- Nodal ministry for ISM: Ministry of Electronics and Information Technology (MeitY), via Digital India Corporation.