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India, US Inks Pact to Reinforce Semiconductors and Supply Chain Ecosystem

Both the countries have formed a semiconductor strategic partnership to strengthen the design and manufacturing procedure of the chips for precision-guided munitions.

The  national security advisors of India and USA have agreed to develop each other’s supply chain, semiconductors, and assured a smooth supply of crucial minerals. The agreement has been signed during the meeting of the India-US initiative on Critical and Emerging Technology (iCET). A new semiconductor strategic partnership has been unleashed by both the countries in an effort to enhance the design and manufacturing procedure of the chips for precision-guided munitions.

Semiconductors, which are extremely crucial for numerous industrial sectors such as telecommunications, defense, and automobiles have witnessed massive geopolitical tussle since the pandemic with major countries like Japan, China, US, and India invested billions to develop the ecosystem. The association between the US and India investors in this ecosystem is expected to strengthen the latter’s information technology and semiconductor ecosystem.

During the meeting, the spokesperson of both the nations said, “Celebrating the conclusion of a joint Semiconductor Readiness Assessment through a partnership between the US Semiconductor Industry Association and the India Electronics Semiconductor Association, which identifies near-term industry opportunities and facilitates longer-term strategic development of complementary semiconductor ecosystems.”

Back in March, India also approved three semiconductor proposals worth Rs 1.26 lakh crore in an effort to fortify the semiconductor manufacturing industry. Tata Electronics and Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) will establish India’s first semiconductor fabrication plant (fab) in Dholera, Gujarat. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam. CG Power, in partnership with Renesas Electronics Corp., Japan, and Stars Microelectronics, Thailand, will establish a semiconductor unit in Sanand, Gujarat.

While speaking of assuring a reliable supply of crucial minerals, the spokesperson added, “Promoting India’s vital role in the Mineral Security Partnership, including through co-investing in a lithium resource project in South America and a rare earths deposit in Africa, to responsibly and sustainably diversify critical mineral supply chains.”

There will be a bilateral collaboration in technologies for Neodymium-iron-boron metal, alloy and magnet making, collaboration with Department of Energy entities; Advancing Indian collaboration with U.S. organizations and companies for carrying out research studies for beneficiation of critical minerals, including lithium, titanium, gallium, and vanadium.

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