Japan plans to transfer LCD technology to India!

On August 28, the Nikkei Chinese website reported that the Japanese and Indian governments are promoting the relocation of non-cutting-edge semiconductor and liquid crystal display production to India. This initiative aims to further reduce dependence on China in products using mature technologies and deepen cooperation in the field of economic security between the two countries.

Products using mature technologies have a wide range of applications. Semiconductors using mature technologies are used not only for voltage control in pure electric vehicles (EVs) but also in inverters that improve the energy efficiency of air conditioners and refrigerators. Compared to cutting-edge products, mature products are easier to relocate due to cost and other factors.

The Japan External Trade Organization (JETRO) and the Confederation of Indian Industry have developed an action plan aimed at relocating production, which will be announced on August 28. This plan is part of the "Economic Security Cooperation Initiative," agreed upon during Indian Prime Minister Narendra Modi's visit to Japan.

The action plan proposes promoting the relocation of production to India for products where Japanese companies are losing domestic production capacity due to low-priced Chinese products, with the goal of rebuilding and expanding production capacity. The targeted products include semiconductors, liquid crystal displays, photovoltaic power generation equipment, batteries, and compressors. Japanese companies will establish joint ventures (JVs) with companies affiliated with Indian chaebols. The two governments will reportedly share information on the JV's investment and production plans. Furthermore, regulations similar to Japan's Unfair Competition Prevention Act will be implemented to prevent technology leaks in India.

In April, Indian business news outlets reported that Japan's Sharp plans to invest $3 billion to $4 billion (approximately RMB 21.701 billion to RMB 28.935 billion) to build a 10th-generation LCD TV display panel factory in India.

Sharp's newly appointed India chairman, Sujai Karampuri, stated, "We are seeking partners—local investors and state governments as partners, as well as the Indian government. This project will fall under the Indian Semiconductor Mission." He added that a project of this scale would require approximately 1,000 acres, and the company is exploring locations in several states, including Telangana.

"Currently, India has no display factories; displays are imported into the country," Karampuri said.