The recent announcement by India and Japan to move the production of semiconductors, LCD panels, and batteries from China to India, made shortly before the SCO summit in Tianjin, is much more than just a business decision. The mix of supply networks, geopolitical agendas, and technology foresight is a planned strategic alignment. This action is a conscious attempt to secure vital technology, reshape Asia’s economic reliance, and influence the developing cognitive aspects of contemporary warfare in addition to industrial diversification.
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Chips as Asia’s Next Power Axis
Semiconductors, batteries, and LCDs are no longer mere consumer goods; they are foundational to contemporary military and technological capability. From unmanned aerial vehicles and precision-guided missiles to cyber-defence systems and quantum computing, the “chip race” increasingly defines national security architecture. China has long dominated this ecosystem, leveraging integrated supply chains for rare earths, assembly, and finished components. India’s collaboration with Japan, combining Japanese technological expertise with India’s demographic and policy advantages, challenges Beijing’s near-monopoly and signals a shift in regional power dynamics.
Today, semiconductors play a major role in warfare, just like oil did in the 20th century. Control over chips equates to control over cognition in the digital age, where decisions increasingly depend on AI, machine-human interfaces, and algorithmic analysis. India entering into this space sends a clear message: strategic autonomy in technology is central to national security.
The Emergence of Cognitive Warfare
Modern warfare is becoming cognitive. Success now depends on controlling perception, judgement, and psychological terrains rather than solely capturing territory. Cognitive warfare employs computational manipulation, digital surveillance, and disinformation to influence adversaries’ decision-making. Semiconductors, LCDs, and high-performance CPUs are essential hardware for AI-driven command systems, augmented reality training, and brain-computer interfaces.
China has already invested heavily on 5G-enabled command systems, AI surveillance, and quantum computing, leveraging semiconductor dominance as a strategic tool. By establishing secure, parallel supply chains, India and Japan mitigate the risks of such technological chokeholds, strengthening their collective position in the cognitive-security domain.
Significance of the Tianjin Moment
The SCI summit in Tianjin provides critical context. China uses the SCO to further its security and development objectives, balance the United States, and solidify its Eurasian vision. India has navigated the platform carefully, focusing on counter-terrorism while avoiding China-centric dominance. The move toward semiconductor manufacturing underscores India’s strategic independence and reinforces its approach of balancing ties with democracies like Japan while actively participating in multilateral platforms.
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This step also conveys a nuanced but strong message to the smaller SCO members, presenting an option to reduce dependence on Beijing and altering how Eurasian supply chains are perceived. India is positioning itself as a credible alternative hub for critical technologies, supported by Japan and Western partners, challenging China’s narrative of regional technological leadership.
India-Japan Synergy: Creating a ‘Chip Corridor’
Japan’s technological expertise, precision engineering, and global credibility complement India’s demographic advantage, cost efficiencies, and support policy initiatives, including the Production Linked Incentive (PLI) schemes. Together, they aim to establish a “Chip Corridor” that circumvents Beijing’s grip, strengthen the Indo-Pacific’s technological resilience, and enhance the security architecture of the region.
The India-Japan collaboration carries broad implications:
· The modernisation of C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, Reconnaissance) systems is accelerated by domestic semiconductor capabilities, which lessen India’s exposure to supply chain risks.
· It reaffirms QUAD’s goals and shows the EU, ASEAN, and Australia that a technological self-reliant ecosystem, without China, is possible.
· This development also challenges China’s quest for technological dominance at a time when it is limited to certain economic and export constraints by the United States.
· It also highlights internal riffs within the SCO as an organisation. China’s Sino-centric aspirations and India’s strategic independence, which are further emphasised by India’s increasing interaction with other democratic nations.
From Tianjin to the Future
An example of cognitive deterrence using economic policy is the semiconductor pivot between India and Japan. Chips are now a part of India’s arsenal, a “hidden armour” in a battlefield where algorithms may determine victory as much as territory. Beyond job creation and export growth, this initiative strengthens India’s technological resilience and establishes it as a proactive player in shaping the Indo-Pacific future.
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By moving semiconductor, battery, and LCD manufacturing to India, with Japanese support, New Delhi is asserting influence in a technology-driven geopolitical landscape. The fight for strategic advantage is increasingly occurring in clean rooms and chip foundries, not just in diplomatic corridors or conventional battlefields. India’s move ensures that, this time, the chips are in its favour.
Subhalakshmi Brahma is a researcher at the JK Policy Institute. She specialises in the intersection of geopolitics, strategic security, and cognitive-technology interfaces in warfare, with a particular focus in the Indo-Pacific security architecture and China’s strategic posture. Views expressed are personal and do not necessarily reflect Firstpost’s editorial stance.
AloJapan.com