India now part of US global chip alliance, to boost semiconductor ecosystem

‘This collaboration, supported by the CHIPS Act’s International Technology Security and Innovation (ITSI) Fund, aims to build a more secure and resilient global semiconductor supply chain.

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Kurt Campbell, US deputy secetary of state, said that both nations are more aligned than ever, working together in sectors such as semiconductors, space, and artificial intelligence. Campbell added that the INDUS-X initiative will be a cornerstone of the US-India Critical and Emerging Technology (ICET) partnership, which accelerates cooperation in cutting-edge technologies.

“Expanding our partnership with India is one of the most strategically important efforts we have taken in the Biden-Harris administration… As we said during Prime Minister Modi’s official state visit last year, from the stars to the sea, no corner of human enterprise is untouched by the cutting edge work we are doing together. Successive administrations in Washington and New Delhi have invested time and political capital to bring this partnership to greater and greater heights,” he said.

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How will India benefit from this partnership?

The partnership aims to strengthen defence innovation and increase operational coordination, technology sharing, and industrial cooperation between the two nations. Both governments have committed USD 1.2 million in funding for US and Indian companies under the INDUS-X initiative.

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The initial phase will include an assessment of India’s semiconductor ecosystem, identifying infrastructure and workforce needs, with potential future joint initiatives to enhance the sector.

This collaboration between the US and India is crucial for maintaining a robust semiconductor supply chain, essential for industries such as automotive and medical devices.

The CHIPS Act, signed by US president Joe Biden in August 2022, allocated funding to boost semiconductor manufacturing and research in the US while strengthening partnerships with allies like India.