New US-India partnership to explore semiconductor supply chain opportunities

The US Department of State will partner with the India Semiconductor Mission of the Ministry of Electronics and IT, Government of India 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 2022, a statement issued by the US State Department said.

The partnership will help build a more resilient, secure, and sustainable global semiconductor value chain, the statement said.

In a post on X, the US-India Strategic Partnership Forum posted a video of US Deputy Secretary of State Kurt Campbell speaking. Campbell said that expanding the US-India partnership is one of the most strategically important efforts he/she has undertaken in the Biden-Harris administration.

he/she said, “Expanding our partnership with India is one of the most strategically important efforts we have undertaken in the Biden-Harris Administration… As we said during Prime Minister Modi’s official state visit last year, from the stars to the seas, no corner of the 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 take this partnership to even greater heights.”

Addressing the forum via video conference, Campbell said that today India and America are more united than ever before.

“Today, our two countries are more interconnected than ever before. In less than a year since launching INDUS-X, we have advanced an ambitious agenda of summits, joint challenges, and exchanges. I am hopeful that these efforts will continue, given the deep bonds that bind our countries and the strategic challenges we face,” Campbell said.

he/she said Indus-X would be the cornerstone of ICET.

he/she said, “Indus-X will be a cornerstone of our continued efforts to advance the U.S.-India Initiative on Critical and Emerging Technologies (ICET) now and beyond. ICET Technological leadership is increasingly at the center of strategic competition. It is a major differentiating factor in our foreign policy approach and India is in a very small group of countries with whom we work most closely on technology. ICET, which places technology at the center of the U.S.-India partnership, has greatly accelerated our strategic cooperation. The second ICET meeting between our National Security Advisors in June showcased our immense progress in many areas, including space semiconductors, advanced telecommunications, artificial intelligence, quantum biotechnology, and clean energy. Deepening defense innovation cooperation is also a key pillar of ICET.”

Talking about defence, Campbell said joint efforts between India and the US will help them maintain the vital edge for their armed forces.

he/she said, “Our working together to foster innovation and develop cutting-edge technologies will help us maintain a critical advantage for our armed forces. We have taken unprecedented steps to enhance operational coordination, information sharing and defence industrial cooperation, including co-production. Indeed, we have authorised an unprecedented level of technology transfer as part of the GE engine co-production arrangement. And our two governments have finalised security of supply arrangements to strengthen our supply chain resilience.”

Campbell said the US and India have announced funding of US$1.2 million under Indus-X.

he/she added, “Under Indus-X, the US and Indian governments have also announced $1.2 million in seed funding to ten US and Indian companies under joint Impact 1.0 challenges. We intend to launch two additional joint challenges, including in other domains including space, and launch the Indus-X testbed consortium of industry, academia, and non-profit organizations in the United States and India to promote our company’s access to test and experimentation facilities.”

he/she said that America has invested a lot to increase partnership with India.

he/she said, “The US has made significant investments in enhancing its strategic partnership with India and we are working on a robust agenda for the remainder of the year to deepen cooperation, not only diplomatically but also through ICET. Our defence establishments, research institutions, private industry and start-ups have a deep bench of talent and a mutual thirst for innovation, which is why INDUS-X is designed to create the ecosystem and partnerships needed for new ideas, research and development. By participating in INDUS-X, you are at the forefront of our efforts to apply cutting-edge commercial technologies to all-military solutions. And because US-India co-production and collaboration on critical technology will define Indo Pacific security for generations to come, the work you are doing could not be more important.”

The initial phase involves a comprehensive assessment of India’s existing semiconductor ecosystem and regulatory framework as well as workforce and infrastructure needs. The state expects key Indian stakeholders such as state governments, academic institutions, research centres, and private companies to participate in this analysis conducted 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 United States and India are vital partners in keeping the global semiconductor supply chain in sync with the ongoing global digital transformation. Manufacturing essential products from vehicles to medical devices relies on the strength and resilience of the semiconductor supply chain. This collaboration between the United States and India underscores the potential to expand India’s semiconductor industry to the benefit of both countries.

In August 2022, US President Joe Biden signed the CHIPS Act, a US law that appropriated new funding to promote domestic manufacturing and research of semiconductors in the United States. The CHIPS Act also created the ITSI Fund, which provides USD 500 million (USD 100 million per year over five years starting in FY 2023) to the US Department of State to promote the development and adoption of secure and reliable telecommunications technologies, secure semiconductor supply chains, and other programs and initiatives with our allies and partners.