Union Minister of Commerce and Industry Shri Piyush Goyal Chairs India-Japan Industry Roundtable on Semiconductors and Artificial Intelligence in Tokyo

The India-Japan Industry Roundtable on Semiconductors and Artificial Intelligence held in Tokyo on August 25, 2026, represents a watershed moment in India's quest for technological sovereignty and economic security. Chaired by Union Commerce Minister Piyush Goyal, this high-level engagement brought together 21 leading Japanese corporations — including Tokyo Electron, NEC Corporation, Kyocera, Fujifilm Holdings, and MUFG Bank — alongside Indian industry delegations, signaling a deepening of the Special Strategic and Global Partnership between the two nations. The roundtable was not an isolated event but the culmination of years of diplomatic groundwork, including the 16th India-Japan Annual Summit where Prime Ministers Narendra Modi and Sanae Takaichi identified semiconductors and AI as key pillars of economic security cooperation. This aligns with India's broader strategic vision under the National Policy on Electronics (2019) and the Semicon India Programme, which aims to position India as a global hub for electronics manufacturing and design. The stakes are enormous. India's domestic semiconductor demand is projected to reach USD 150 billion by 2032, driven by exponential growth in digital infrastructure, 5G rollout, automotive electronics, and AI-driven applications. To catalyze this ecosystem, the Government has committed USD 10 billion under Semicon India 1.0 and an additional USD 15 billion under Semicon India 2.0 — a total of USD 25 billion in fiscal support covering the entire value chain: chip design, fabrication, ATMP/OSAT (Assembly, Testing, Marking & Packaging / Outsourced Semiconductor Assembly and Test), semiconductor materials, machinery, R&D, and talent development. This comprehensive strategy reflects a whole-of-government approach involving the Ministry of Electronics and Information Technology (MeitY), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Finance, and Ministry of External Affairs — embodying the cooperative federalism spirit under Article 246 and Seventh Schedule (Union List entries on industries and international trade). Japan brings to the table unmatched capabilities in semiconductor materials (photoresists, specialty gases, silicon wafers), precision machinery (Tokyo Electron, Daifuku), and advanced manufacturing processes — areas where India currently has significant import dependence. Conversely, India offers a vast pool of STEM talent, a burgeoning design ecosystem (with over 2,000 chip design engineers already working for global firms), and a rapidly expanding domestic market. The complementarity is strategic: Japan seeks supply chain resilience amid geopolitical uncertainties, while India seeks technology transfer, capital, and integration into global value chains. The roundtable's emphasis on "Make in India, Design in India, Develop in India" encapsulates this synergy. The bilateral meeting between Minister Goyal and Japan's METI Minister Akazawa Ryosei further institutionalized this cooperation. Accelerating the review of the Comprehensive Economic Partnership Agreement (CEPA) — originally signed in 2011 — is critical to reducing tariff and non-tariff barriers in high-tech sectors. The target of JPY 10 trillion (approx. USD 70 billion) in private Japanese investment by 2030, if achieved, would transform India's industrial landscape. This also connects to India's Production Linked Incentive (PLI) schemes for semiconductors, IT hardware, and telecom equipment, which provide financial incentives linked to incremental sales and domestic value addition. Constitutionally, such international economic engagements fall under the Union's executive power (Article 73) and treaty-making authority (Article 253), while domestic industrial policy operates under Entry 52 (Industries) of the Union List. The focus on AI also intersects with the Digital Personal Data Protection Act, 2023, and the proposed Digital India Act, highlighting the need for a robust regulatory framework for emerging technologies. Looking ahead, the success of this partnership hinges on three factors: (1) fast-tracking project clearances and addressing Japanese industry concerns on land, labor, and logistics — areas where state-level cooperation is essential under Article 246; (2) building a sustainable talent pipeline through Indo-Japan academic and vocational collaborations; and (3) ensuring that technology transfer goes beyond assembly to include core IP creation in India. If realized, this partnership could make India a credible alternative in the global semiconductor supply chain, reduce strategic vulnerabilities, and generate millions of high-skilled jobs — directly advancing the vision of Viksit Bharat @2047.