New Delhi | Bengaluru: Japan has sanctioned an Indian tech firm for its alleged support to Russia’s “war efforts”, a development that could cast a shadow over an otherwise burgeoning strategic partnership between the two countries.

The sanctions, announced by Japan’s foreign affairs ministry against Bengaluru-based Si2 Microsystems Pvt Ltd, along with other firms based in China, the UAE and Central Asia, mark the first time that Japan has targeted foreign companies over their alleged links to the war in Ukraine.

Japan’s move has “not pleased India and matters are being scrutinised here at a high level”, said people familiar with the matter.

Si2 Microsystems is a system-in-package and microsystems solutions company providing wireless, wireline and microsystems solutions. It has design centres and manufacturing operations in Bengaluru, San Jose (California), the Netherlands and Thailand.

The company had also worked on a central government project, including for a space project. It had worked with central government agencies to develop chips that can be used in quantum computing, telecom and radar and avionics industries, among other applications, according to people in the know.

Experts said the Fumio Kishida-led government, unlike the previous Japanese government, appears to be yielding under the Western pressure.