This study examines the India-Japan Semiconductor Partnership as a strategic response to India's critical dependency on Chinese semiconductor imports. With China supplying 70-75 percent of India's computer imports and contributing to an $87.48 billion trade deficit in 2022, India faces acute economic, strategic, and technological vulnerabilities requiring urgent diversification. The partnership, formalized through a July 2023 Memorandum of Cooperation, combines Japan's semiconductor manufacturing expertise with India's large domestic market through institutional mechanisms including JBIC financing, IJICP industrial corridors, and technology transfer initiatives. Employing qualitative case study methodology with comparative analysis, this research examines the partnership's strategic rationale, institutional architecture, implementation challenges, and potential outcomes. Findings reveal sophisticated institutional design addressing financial support, infrastructure development, and workforce development simultaneously. However, formidable challenges emerge: capital requirements exceeding tens of billions, workforce skill gaps requiring 5-10 years to remedy, paradoxical dependence on Chinese rare earth materials, and infrastructure deficits. Unlike US partnerships with Taiwan and South Korea leveraging existing manufacturing excellence, India-Japan must build capabilities from scratch. The partnership represents a critical test case for bilateral cooperation as pathway to technological sovereignty in emerging economies, with implications for Indo-Pacific supply chain resilience and friendshoring viability in critical technology sectors.