India and US Forge New Semiconductor Partnership to Strengthen Global Supply Chain

(Source: Indian Express; Section: Cover Page; Page: 01)

 Analysis of News:     

India-US Semiconductor Partnership

• Ahead of Prime Minister Modi’s expected visit to the US, Washington announced a new partnership with India to explore opportunities in the semiconductor supply chain.
• This collaboration will involve a comprehensive assessment of India’s current semiconductor ecosystem, regulatory framework, workforce, and infrastructure needs.
• This groundwork will pave the way for future joint initiatives to strengthen the sector.

Purpose and Scope of the Partnership

• The US Department of State will collaborate with the India Semiconductor Mission to enhance and diversify the global semiconductor ecosystem.
• The initial phase involves engaging Indian stakeholders like state governments, educational institutions, and private companies to identify areas of improvement.
• The partnership aims to create a resilient and secure global semiconductor value chain, addressing the demands of global digital transformation.

Alignment with the CHIPS Act

• This initiative aligns with the CHIPS Act of 2022, signed by US President Joe Biden, which seeks to boost domestic semiconductor manufacturing and research.
• The act also created the International Technology Security and Innovation (ITSI) Fund, with $500 million allocated to promote secure semiconductor supply chains and trusted telecom technologies in collaboration with global allies, including India.

Potential Impact

• The partnership underscores the strategic importance of semiconductors in manufacturing essential products such as vehicles and medical devices.
• By strengthening India’s semiconductor industry, both nations aim to benefit from a more robust supply chain, ensuring global competitiveness and security in the technology sector.