The technological collaboration between India and Japan in the electronics hardware industry is bolstering their economic and strategic ties. This emerging “tech alliance” is becoming a crucial partnership as semiconductors, generative Artificial Intelligence (AI), and digital public infrastructure reshape global dynamics. The recent 15th India-Japan Annual Summit highlighted the shift towards building a free and open digital future rather than just focusing on trade relations.
India’s extensive reach and young user base complement Japan’s expertise in high-end manufacturing and long-term investments. Together, they form a resilient democratic counterbalance to authoritarian digital models dominated by states. India’s innovative digital initiatives like the “India Stack” have showcased the potential of digital public goods in driving inclusive growth by overcoming traditional infrastructural barriers.
A notable example of this collaboration is the partnership between Tata Electronics and Japan’s ROHM Co., Ltd., aimed at producing India-designed automotive-grade power semiconductors. This joint venture, operational since early 2026, demonstrates how Indian manufacturing can meet Japanese precision standards, benefiting the global market. By leveraging each other’s strengths, India and Japan are setting a precedent for successful cross-border partnerships in the electronics sector.
While India has excelled in software development, its historical reliance on foreign hardware has posed challenges. Japan’s expertise in semiconductor materials and equipment provides a strategic advantage, especially in mitigating supply chain vulnerabilities. Initiatives like the India Semiconductor Mission (ISM) 2.0, launched in early 2026, signify a deeper integration of Indian chip design capabilities with Japanese industrial expertise, fostering a mutually beneficial ecosystem.
The recent Union Budget 2026-27 further solidified this partnership by expanding the Electronics Components Manufacturing Scheme (ECMS) with a significant allocation of Rs 40,000 crore. This move aims to encourage Japanese small and medium enterprises (SMEs) to establish specialized manufacturing units in India’s emerging electronics hubs, emphasizing the importance of owning intellectual property in the electronics industry. The collaborative efforts between India and Japan are paving the way for a more self-reliant and technologically advanced future.
