The US will partner with India’s Semiconductor Mission under 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 (CHIPS Act), the US State Department said.
This partnership will help create a more resilient, secure, and sustainable global semiconductor value chain, it said in a statement Monday. 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.
“US and India are key partners in ensuring the global semiconductor supply chain keeps pace with the global digital transformation currently underway,” the statement said. The collaboration between the US and India underscores the potential to expand India’s semiconductor industry to the benefit of both nations, it added.
Manufacturing of essential products ranging from vehicles to medical devices relies on the strength and resilience of the semiconductor supply chain. 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 Sate Department said.
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. The law also created the ITSI Fund, which provides the US State Department $500 million over a five-year period starting from FY2023.
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.