US-India Partnership to Boost Global Semiconductor Supply Chain

India and the US have agreed to collaborate on expanding and diversifying the global semiconductor ecosystem. This cooperation aims to bolster the semiconductor supply chain amid ongoing digital transformation. The initial phase includes an assessment of India's current capabilities and needs, laying the groundwork for future joint initiatives.

India and the US have struck a deal to jointly explore avenues for the expansion and diversification of the global semiconductor ecosystem. This development positions both nations as pivotal players in maintaining the pace of the digital transformation unfolding worldwide, according to an announcement made on Monday.

The US Department of State revealed its new partnership with India's Semiconductor Mission under the Ministry of Electronics and IT. The collaboration aims to utilize the International Technology Security and Innovation (ITSI) Fund, established by the CHIPS Act of 2022, to grow and diversify the semiconductor landscape.

'This partnership will help create a more resilient, secure, and sustainable global semiconductor value chain,' said a statement from the State Department.

The initial phase focuses on assessing India's semiconductor ecosystem, workforce, infrastructure, and regulatory framework. Key stakeholders including state governments, academic institutions, research centers, and private companies in India are set to participate in this comprehensive analysis.

The findings from this assessment will guide potential future initiatives aimed at strengthening this critical sector.

'The United States and India are key partners in ensuring the global semiconductor supply chain keeps pace with the ongoing digital transformation. The manufacturing of essential products such as vehicles and medical devices hinges on a strong semiconductor supply chain. This US-India collaboration highlights the potential to expand India's semiconductor industry for mutual benefit,' the statement elaborated.

In August 2022, US President Joe Biden signed the CHIPS Act into law, allocating funds to support domestic semiconductor manufacturing and research. The Act also established the ITSI Fund, granting the US Department of State $500 million—dispersed as $100 million annually over five years—to foster secure telecommunications technologies and strengthen semiconductor supply chains in cooperation with global allies and partners.

(With inputs from agencies.)