US announces partnership with India in semiconductor sector

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

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

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

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

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

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

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

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

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

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

aim of funding is to promote development and option of secure and trusted telecommunications technologies, secure semiconductor supply chains, and or programmes and initiatives with US allies and partners.

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

insights gained from assessment will serve as basis for potential future joint initiatives to strengn and grow this critical sector, reout said.