US Announces Semiconductor Partnership With India

September 10, 2024

The US announced a partnership with India to improve its semiconductor supply chain. This plan will examine India’s ability to make and use semiconductors, setting the stage for future projects between the two countries. It shows how important the semiconductor industry is globally.

What is the Semiconductor Ecosystem?

Semiconductors are small, essential parts found in many devices like cars, computers, and medical equipment. The partnership between the US and India will closely look at India’s current situation in making semiconductors. This includes checking laws, the skills of workers, and whether there is enough infrastructure to support this industry.

The Role of the CHIPS Act

In August 2022, President Biden signed the CHIPS Act, a law that provides lots of money to boost the production of semiconductors in the US. Part of this law is the International Technology Security and Innovation (ITSI) Fund, which is focused on making sure the US and its allies, like India, have secure and stable supply chains for semiconductors.

India’s involvement in the semiconductor industry is very important for both India and the US. The Covid-19 pandemic revealed how fragile global supply chains are, and current tensions with countries like China have further complicated the situation. By working together, the US and India can make semiconductor production more reliable and reduce dependence on major suppliers like Taiwan and China.

What is India’s Semiconductor Mission?

In 2021, India started its Semiconductor Mission to build a strong, local semiconductor industry. The government is offering big financial incentives to encourage this development. India has also made deals with companies like Taiwan’s Powerchip Semiconductor Manufacturing Corporation to help create a sustainable semiconductor sector.

The initial work from this US-India partnership will give valuable information for future projects. This collaboration aims not only to strengthen India’s economy by building its semiconductor industry but also to make global supply chains for these critical technologies more stable and secure.

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