New Delhi is witnessing a transformative phase in global technology as India and Japan forge deeper ties in electronics hardware. This burgeoning partnership between the world’s largest democracy and Asia’s tech powerhouse is evolving beyond mere trade into a strategic bulwark for a free and open digital world.
The 15th India-Japan Annual Summit in late 2025 marked a pivotal moment, signaling that collaboration now encompasses semiconductors, generative AI, and Digital Public Infrastructure (DPI). With India’s massive market and youthful demographic paired with Japan’s manufacturing prowess and capital, they are crafting a democratic counter to state-controlled digital paradigms.
India’s ‘India Stack’—featuring Aadhaar biometrics, UPI payments, and the emerging Agri-Stack—has integrated over a billion people into the formal economy, shattering traditional barriers and proving DPI’s role in inclusive growth. This digital revolution positions India as a global beacon.
A prime example is the December 2025 joint venture between Tata Electronics and Japan’s Rohm Company Limited. In Assam’s Jagiroad, Tata is investing $3.2 billion (about ₹27,000 crore) to assemble and test Rohm’s automotive-grade power semiconductors designed in India. These chips will power next-gen electric vehicles, slashing supply times for India’s auto sector.
Rohm’s advanced tech combined with Tata’s OSAT capabilities exemplifies a ‘silicon shield,’ demonstrating Indian manufacturing’s alignment with Japanese quality standards for global markets. This addresses India’s long-standing hardware dependency exposed by early 2020s supply chain disruptions.
Japan’s dominance in semiconductor materials, photoresists, and lithography equipment offers India a reliable solution against geopolitical pressures. 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 gaps. It incentivizes Japanese SMEs to set up in Dholera and Sanand clusters, extending beyond assembly to securing IP for chips powering smart cities and defense systems.
This tech alliance not only bolsters economic ties but redefines regional geopolitics, promising a resilient digital future grounded in democratic values.