India and US come together to strengthen global semiconductor supply chain

Global semiconductor supply chain: India and the United States have jointly expressed their commitment to strengthening the global semiconductor supply chain, emphasising their dedication to ongoing high-level collaboration between governments, industries, and educational institutions.

During their bilateral discussions in New Delhi, Prime Minister Narendra Modi and US President Joseph Biden underscored the importance of building a resilient global semiconductor supply chain while reiterating their commitment to expanding the India-US Strategic Partnership based on trust and mutual understanding.

The meeting took place as President Biden visited New Delhi to attend the G20 Summit hosted by Prime Minister Modi.

In their joint statement, the two leaders voiced their support for the development of robust global semiconductor supply chains, acknowledging Microchip Technology's multi-year initiative to invest approximately $300 million in expanding its research and development presence in India. They also noted Advanced Micro Devices' commitment to invest $400 million over the next five years to expand research, development, and engineering operations in the country.

MoU between Bharat 6G Alliance and Next G Alliance

Modi and Biden expressed satisfaction with the progress made in implementing announcements made in June 2023 by US companies, specifically Micron, LAM Research, and Applied Materials.

Additionally, they welcomed the signing of a Memorandum of Understanding (MoU) between the Bharat 6G Alliance and the Next G Alliance, operated by the Alliance for Telecommunications Industry Solutions, as an initial step toward strengthening public-private cooperation between technology vendors and operators.

India and the US are actively advancing the establishment of investment platforms aimed at reducing the cost of capital and expediting the implementation of greenfield renewable energy, battery storage, and emerging green technology projects in India.

To this end, India's National Investment and Infrastructure Fund and the US Development Finance Corporation have exchanged letters of intent to each contribute up to $500 million to establish a renewable infrastructure investment fund.

Innovation handshake

The two leaders also welcomed the development of an ambitious "Innovation Handshake" agenda within the India-US Commercial Dialogue. This initiative will encompass two anchor events—one in India and the other in the United States—where startups, private equity and venture capital firms, corporate investment departments, and government officials from both countries will collaborate to strengthen connections within their respective innovation ecosystems.

Modi and Biden reaffirmed their commitment to maintaining the high level of engagement between the governments, industries, and academic institutions of India and the United States.

Furthermore, both nations expressed their support for the Women in the Digital Economy Initiative, a collaborative effort that brings together governments, private sector companies, foundations, civil society, and multilateral organisations to accelerate progress in bridging the digital gender divide.

(With PTI inputs)