US Partners With India For Semiconductor Value Chain Ahead Of PM Modi's Visit, Will Assess Chip Ecosystem First

The US Department of State on Monday (9 September) announced its plan to partner with the India Semiconductor Mission "to explore opportunities to grow and diversify the global semiconductor ecosystem."

The US hopes that this partnership under the International Technology Security and Innovation (ITSI) Fund will help create a more resilient, secure and sustainable global semiconductor value chain.

The supply chain disruptions during the Covid-19 and due to China's aggressiveness have compelled countries to search for alternatives. Hence, India launched its semiconductor mission in 2021.

Last week, India signed a Memorandum of Understanding (MoU) with Singapore in the semiconductor sector when Prime Minister Narendra Modi met his Singaporean counterpart Lawrence Wong.

A similar MoU can be signed with the US during PM Modi's US trip scheduled for 21 to 24 September, where he will attend the Quad leaders’ summit, the Summit of the Future and a diaspora event.

The US said that it will first comprehensively assess India’s existing semiconductor ecosystem, regulatory framework, workforce and infrastructure needs.

It expects the participation of key Indian stakeholders, such as state governments, educational institutions, research centers and private companies in this analysis.

"The insights gained from the assessment will serve as the basis for potential future joint initiatives to strengthen and grow this critical sector," the US State Department's statement said.

It believes that the collaboration between the US and India has the potential to expand India’s semiconductor industry to the benefit of both nations.