US announces partnership with India in semiconductor sector

In a significant move, the US State Department on Monday announced a partnership with India to diversify the global semiconductor ecosystem under the International Technology Security and Innovation (ITSI) fund.

The initial phase of the partnership includes a comprehensive assessment of India's existing semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs.

The State Department said the partnership with India's semiconductor mission under the Ministry of Electronics and IT underscores the potential to expand New Delhi's semiconductor industry to the benefit of both nations.

The US Department of State will partner with the India semiconductor mission, the Ministry of Electronics and IT, to explore opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security and Innovation (ITSI) Fund, created by the CHIPS Act of 2022, a US readout shared by its embassy said.

"This partnership will help create a more resilient, secure, and sustainable global semiconductor value chain," it said.

The initial phase of the partnership includes a comprehensive assessment of India's existing semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs, it said.

"The United States and India are key partners in ensuring the global semiconductor supply chain keeps pace with the global digital transformation currently underway," the readout said.

"Manufacturing of essential products ranging from vehicles to medical devices relies on the strength and resilience of the semiconductor supply chain," it said.

"This collaboration between the United States and India underscores the potential to expand India's semiconductor industry to the benefit of both nations," the US State Department added.

In August 2022, President Joe Biden signed the CHIPS Act, a US law that appropriated new funding to boost domestic manufacturing and research of semiconductors in the United States. The CHIPS Act also created the ITSI Fund, which provides the US Department of State with USD 500 million (USD 100 million per year over five years, starting in fiscal year 2023).

The aim of the funding is to promote the development and adoption of secure and trusted telecommunications technologies, secure semiconductor supply chains, and other programmes and initiatives with US allies and partners.

The US anticipated that key Indian stakeholders, such as state governments, educational institutions, research centres, and private companies, will participate in this analysis steered by the India semiconductor mission.

The insights gained from the assessment will serve as the basis for potential future joint initiatives to strengthen and grow this critical sector, the readout said.