New Delhi’s corridors of power are buzzing with excitement over the burgeoning technological partnership between India and Japan, a collaboration poised to redefine the global digital landscape. As semiconductors, generative AI, and digital public infrastructure emerge as cornerstones of tomorrow’s world, this alliance between the world’s largest democracy and Asia’s tech powerhouse is solidifying economic and strategic ties like never before.
The 15th India-Japan Annual Summit in late 2025 marked a pivotal moment, shifting the focus from mere trade to architecting a free and open digital future. India’s massive market and youthful demographic complement Japan’s precision manufacturing prowess and long-term investment capabilities. Together, they’re crafting a democratic digital model that counters state-controlled alternatives with inclusivity and innovation.
At the heart of this synergy lies India’s digital revolution, exemplified by the ‘India Stack’—a suite of tools including Aadhaar’s biometric ID, UPI for seamless payments, and the emerging ‘Agri-Stack.’ These have onboarded a billion people into the formal economy, shattering traditional barriers and proving that digital public goods can drive equitable growth.
A flagship example is the December 2025 joint venture between Tata Electronics and Japan’s Rohm Company Limited. This $3.2 billion facility in Jagiroad, Assam, assembles and tests Rohm’s automotive-grade power semiconductors designed in India for next-gen electric vehicles. The blend of Rohm’s mature tech and Tata’s OSAT capabilities slashes supply times for India’s auto sector, with mass production slated for early 2026. It’s a ‘silicon shield’ demonstrating India’s manufacturing can meet Japanese quality standards and serve global markets.
India’s software dominance is undisputed, but hardware dependency has been a Achilles’ heel, exposed by early 2020s supply chain disruptions. Japan’s grip on critical materials like photoresists and lithography equipment offers a strategic fix. The India Semiconductor Mission (ISM) 2.0, launched in February 2026 budget, fosters an ecosystem blending Indian chip design with Japanese industrial leadership.
The 2026-27 Union Budget expanded the Electronics Components Manufacturing Scheme (ECMS) with ₹40,000 crore, targeting supply chain weak links. Japanese SMEs are being lured to clusters like Dholera and Sanand to set up specialized units, extending beyond assembly to securing IP for chips powering smart cities and defense systems.
This partnership isn’t just about chips; it’s about securing a democratic digital order where innovation thrives without authoritarian overreach. As both nations invest in complementary strengths, they’re not only boosting economies but setting a global benchmark for tech collaboration.