Japan to Shift Legacy Tech Production to India
Japan and India are preparing to relocate production of legacy semiconductor chips, LCD panels, and battery technologies from Japan to India. The initiative is designed to strengthen economic security and reduce reliance on Chinese manufacturing, especially in sectors critical for consumer electronics and electric vehicles. The move focuses on “legacy” technologies, which remain essential for large-scale industries even though they are no longer cutting-edge.
Formalisation Expected During Modi’s Visit
The plan is expected to be announced during Prime Minister Narendra Modi’s upcoming visit to Tokyo on August 29. Modi will hold discussions with Japanese leaders under an economic security framework that prioritises supply chain diversification, strategic investments, and cooperation in sensitive technology sectors.
Importance of Legacy Technologies
Legacy semiconductor nodes are widely used in automobiles, home appliances, and communication devices. Similarly, LCD display units and battery cells are critical to industries where demand continues to grow. Japan has been scaling back production of these technologies due to rising competition and pricing pressures, making India an attractive hub for future production.
Part of a Broader 10-Year Pact
The shift is aligned with a wider ten-year India–Japan cooperation plan that covers semiconductors, clean energy, critical minerals, telecoms, and digital technologies. Both countries see this as a strategic step to reduce dependence on Chinese supply chains while enhancing regional resilience and mutual economic benefits.
