India, US partner for new semiconductor fab plant in Kolkata: Story in 5 points

Prime Minister Narendra Modi and President Joe Biden have jointly announced a watershed arrangement between India and the US for a new semiconductor fabrication facility in West Bengal’s Kolkata. During his US visit, PM Modi held discussions on how the two nations can collaborate better to chart “a technology partnership for the future.” In their talks, the two leaders praised combined efforts to “facilitate resilient, secure, and sustainable semiconductor supply chains,” of which the upcoming semiconductor facility will be a key part.

Here are five points on the joint announcement by India and the US, according to the White House’s fact sheet:

1. The semiconductor fabrication plant will be focused on advanced sensing, communication, and power electronics for national security, next-generation telecommunications, and green energy applications.
2. The facility will be dedicated to the production of infrared, gallium nitride, and silicon carbide semiconductors – enabled by support from the Indian Semiconductor Mission and the strategic partnership between Bharat Semi, 3rdiTech, and the US Space Force.
3. The efforts to ensure a sustainable semiconductor supply will include the setting up of the GK Kolkata Power Center in Kolkata in partnership with GlobalFoundries, one of the major semiconductor manufacturers in the US.
4. The joint statement said that the upcoming facility will “enhance mutually beneficial linkages in research and development in chip manufacturing and enable game-changing advances for zero and low emission as well as connected vehicles, internet of things devices, AI, and data centres.”
5. The upcoming GF facility in Kolkata will also create jobs in India and the US through “cross-border manufacturing and technology partnerships with India.” Both leaders hailed the strategic partnership between the India Semiconductor Mission, the Ministry of Electronics and Information Technology and the US Department of State through the International Technology Security and Innovation (ITSI) fund.

India's push for semiconductor production

Under the India Semiconductor Mission, the government has approved the setting up of at least four semiconductor fabrication facilities in Gujarat and Assam . Tata Group is working with different companies to build a $14 billion facility in Gujarat and a testing facility in Assam. Kaynes also received the Cabinet’s nod to set up a chip facility in Gujarat’s Sanand, while the Adani Group recently announced an investment of $10 billion for a chip project in Maharashtra .