The United States and India have announced a significant collaboration aimed at expanding and strengthening the global semiconductor supply chain. This partnership marks a pivotal step in enhancing the resilience and security of semiconductor production and distribution.
The US Department of State will join forces with the India Semiconductor Mission, an initiative under the Ministry of Electronics and IT, to explore and develop strategies for growing and diversifying the semiconductor ecosystem. This collaboration will be supported by the International Technology Security and Innovation (ITSI) Fund, which was established through the CHIPS Act of 2022.
According to a press release from the US Department of State, the partnership will leverage the ITSI Fund to explore opportunities that will expand and strengthen the global semiconductor ecosystem. The ITSI Fund, created by the CHIPS Act, is a critical component of this initiative, aiming to bolster secure and trusted semiconductor supply chains.
The initial phase of this collaboration will focus on a thorough assessment of India’s semiconductor ecosystem. This evaluation will cover India’s regulatory framework, workforce capabilities, and infrastructure. Key stakeholders, including state governments, educational institutions, research centers, and private companies in India, are expected to play a significant role in this analysis.
This comprehensive assessment is designed to provide a foundation for future initiatives aimed at enhancing the semiconductor sector and ensuring a robust and secure global supply chain.
The CHIPS Act, signed into law by US President Joe Biden in August 2022, was designed to boost semiconductor manufacturing and research within the United States. A key element of the CHIPS Act is the establishment of the International Technology Security and Innovation (ITSI) Fund, which allocates USD 500 million over five years to support secure telecommunications technologies and semiconductor supply chains.
The ITSI Fund’s partnership with India is one of its initial international cooperation efforts. This collaboration is expected to strengthen both the US and Indian semiconductor industries, enhancing supply chain resilience and fostering greater cooperation between the two nations.
The expanding partnership between the US and India reflects a broader alignment of strategic interests, particularly in technology. US Deputy Secretary of State Kurt Campbell emphasized the importance of this relationship during his speech at the US-India Strategic Partnership Forum. He highlighted that the expansion of the US-India partnership is a critical priority for the Biden-Harris administration.
Campbell noted that the technology-focused collaboration between the two countries is set to reach new heights, with significant progress being made in areas such as semiconductors, artificial intelligence, space, and clean energy. The US-India Initiative on Critical and Emerging Technology (ICET) has played a crucial role in accelerating this strategic cooperation, with its second meeting held in June showcasing the progress achieved across various sectors.
The US-India collaboration extends beyond the semiconductor industry and includes advancements in defence innovation. Both countries are working together to develop cutting-edge technologies that provide a strategic advantage for their armed forces. This cooperation includes technology transfers, such as the GE engine co-production arrangement, which is part of their broader defence collaboration efforts.
Additionally, under the INDUS-X initiative, both governments have announced USD 1.2 million in funding to support ten companies from the US and India. This funding aims to drive innovation and promote collaboration across sectors, including space exploration and advanced telecommunications.
The partnership between the US and India under the CHIPS Act has the potential to transform the global semiconductor ecosystem. As both countries work together to strengthen their supply chains, they will also create new opportunities for research, innovation, and development in critical technologies.
This collaboration is expected to yield significant benefits for both nations, enhancing their semiconductor industries and contributing to the overall stability and growth of the global semiconductor market. The ongoing efforts to strengthen the US-India partnership and advance technological innovation underscore the importance of international cooperation in addressing global challenges and advancing shared interests.