US, India To Explore Semiconductor Supply Chain Potential

The U.S. Department of State has announced a partnership with India that aims to create a more resilient, secure, and sustainable global semiconductor ecosystem, with funding support under the International Technology Security and Innovation Fund, created by the U.S. CHIPS Act 2022.

According to a notice published by the U.S. Department of State, 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 U.S. anticipated that Indian stakeholders, such as state governments, educational institutions, research centres, and private companies, will participate in this analysis headed 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 the sector.

The U.S. and India are key partners in ensuring the global semiconductor supply chain keeps pace with the global digital transformation currently underway, the statement read. Manufacturing of essential products ranging from vehicles to medical devices relies on the strength and resilience of the semiconductor supply chain.

The collaboration underscores the potential to expand India’s semiconductor industry to the benefit of both nations, the statement added.

In August 2022, President Joe Biden signed the CHIPS Act, a U.S. law that accorded new funding to boost domestic manufacturing and research of semiconductors in the U.S. The CHIPS Act also created the ITSI Fund, which provided the U.S. Department of State with $500 million to promote the development and adoption of secure and trusted telecommunications technologies, secure semiconductor supply chains, and other programs and initiatives with allies and partners.

- With inputs from PTI.