Washington, D.C. (September 9, 2024) – In a move aimed at bolstering the global semiconductor supply chain, the U.S. Department of State announced a new partnership with India’s Semiconductor Mission under the Ministry of Electronics and IT. The collaboration, part of the International Technology Security and Innovation (ITSI) Fund established by the CHIPS Act of 2022, will focus on expanding and diversifying the semiconductor ecosystem between the two nations.
The first phase of the partnership will involve an in-depth assessment of India’s current semiconductor infrastructure, workforce capabilities, and regulatory landscape. The goal is to identify opportunities for growth and create a more resilient global semiconductor value chain, addressing a critical component of many industries, from automotive to healthcare.
“This partnership with India marks a pivotal step in securing the global semiconductor supply chain,” a State Department spokesperson said in a statement. “By strengthening our cooperation, we can mitigate potential disruptions and ensure that both nations are prepared for the demands of the future digital economy.”
India is expected to play a key role in the assessment phase, with the involvement of state governments, private companies, and educational institutions under the leadership of the India Semiconductor Mission. The results of this analysis could serve as a foundation for future joint ventures aimed at bolstering India’s position in the semiconductor industry.
“India’s semiconductor sector has enormous potential, and this collaboration is an opportunity to leverage that for mutual benefit,” said a representative from India’s Ministry of Electronics and IT. “As global demand for semiconductors increases, it’s essential that we create a sustainable, secure supply chain to meet that need.”
The partnership builds on the broader goals of the CHIPS Act, which President Biden signed into law in 2022. The CHIPS Act allocates funding to boost semiconductor production in the U.S. and fosters partnerships with global allies like India. The ITSI Fund, which finances this initiative, provides $100 million per year for five years to promote secure and trusted technology infrastructure, including semiconductors.
Experts say the partnership between the U.S. and India is not only a step toward securing the semiconductor supply chain but also a strategic move to ensure both nations remain competitive in the rapidly evolving digital landscape.
“The collaboration will significantly enhance India’s semiconductor capabilities, while providing the U.S. with a trusted partner in a critical sector,” said a leading industry analyst. “This is more than just an economic initiative; it’s a pathway to technological security for both countries.”
With this new agreement, the United States and India are signaling their commitment to addressing one of the most pressing global challenges—ensuring the semiconductor supply chain can keep up with the demands of the digital era.
The initial findings from the assessment phase are expected to be released in 2025, paving the way for future initiatives between the two nations to further develop the sector.
