US and India Collaborate to Strengthen Global Semiconductor Ecosystem

The US Department of State and India's Semiconductor Mission, under the IT Ministry, are partnering under the ITSI Fund from the CHIPS Act to expand and diversify the global semiconductor ecosystem. This initiative focuses on a resilient, secure, and sustainable supply chain, benefitting both nations and globally.

The US Department of State is joining forces with India's Semiconductor Mission, part of the Union Electronics and IT Ministry, to explore ways to bolster the global semiconductor ecosystem through the International Technology Security and Innovation (ITSI) Fund, established by the 2022 CHIPS Act.

This collaboration aims to develop a resilient, secure, and sustainable semiconductor value chain. Speaking at the event, US Deputy Assistant Secretary of State for Trade Policy and Negotiations, J Robert Garverick emphasized, "The Department of State is working with the Indian government to identify opportunities for expanding and diversifying the global semiconductor sector under the ITSI Fund. The CHIPS Act, signed by President Biden two years ago, created this fund to ensure a secure semiconductor supply chain and telecommunications networks."

The initiative's first phase entails a thorough examination of India's semiconductor ecosystem, regulatory framework, workforce, and infrastructure needs. Garverick noted that insights from this review will inform potential joint efforts to fortify this crucial industry, highlighting the US and India's key roles in maintaining the global semiconductor supply chain amid the digital transformation. This cooperation seeks to expand India's semiconductor industry for mutual and global benefits, including supply chain logistics.

The US Department of State expects engagement from Indian state governments, educational institutions, research centers, and private companies, under the guidance of the India Semiconductor Mission. Akash Tripathi, CEO of the mission, announced, "We are pleased to extend our collaboration with the US by conducting a comprehensive study to access the ITSI Fund. It's essential to understand the gaps and needs in India's semiconductor industry. We aim to complete this study in a few months to further enhance our semiconductor ecosystem."

President Joe Biden signed the CHIPS Act in August 2022, allocating new funding to boost US semiconductor manufacturing and research. The act also established the ITSI Fund, providing the US Department of State with $500 million over five years to promote secure semiconductor supply chains and telecommunications technologies in partnership with US allies and partners.

(With inputs from agencies.)