New Delhi: The United States state department has announced a new partnership with the India Semiconductor Mission, which is under the aegis of the electronics and IT ministry. This collaboration aims to explore and expand opportunities within the semiconductor ecosystem, leveraging the US’s International Technology Security and Innovation (ITSI) Fund established by the CHIPS Act of 2022.
In a news release on Monday, the state department said this partnership is set to create a more resilient, secure, and sustainable global semiconductor value chain. The initial phase will involve a thorough assessment of India’s existing semiconductor ecosystem, including its regulatory framework, workforce, and infrastructure needs.
This assessment will be led by the India Semiconductor Mission and will include participation from key Indian stakeholders such as state governments, educational institutions, research centres, and private companies.
The US deputy assistant secretary of state for trade policy and negotiations, J Robert Garverick, highlighted the importance of this collaboration during a recent event. He stated: “The [US] Department of State is partnering with the Government of India to explore opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security and Innovation Fund. Our cooperation underscores the potential to expand the Indian semiconductor industry to benefit both nations and much of the rest of the world.”
The CHIPS Act, signed by the US president, Joe Biden, in August 2022, allocated new funding to boost domestic manufacturing and research of semiconductors in America. The ITSI Fund, created under this act, provides the US state department with $500 million over five years to promote the development and adoption of secure and trusted telecommunications technologies and semiconductor supply chains.
Akash Tripathi, CEO of the India Semiconductor Mission, expressed enthusiasm about the partnership. He said: “To extend our partnership with the US, we are announcing that we will be engaging in and conducting a study with them to access the ITSI Fund. The US needs to study the entire ecosystem to understand the gaps and needs of the semiconductor industry in India. We are happy to partner with them in facilitating this study.”
The state department statement further said the insights gained from this comprehensive assessment will serve as the foundation for potential joint initiatives to strengthen and grow this critical sector. The collaboration between the US and India is seen as a strategic move to ensure that the global semiconductor supply chain keeps pace with the ongoing digital transformation.
This partnership is a reflection of the growing strategic partnership between the two countries. This includes boosting the security of supply chains of critical items, such as defence items and semiconductors, which are of dual-use nature. By working together, the US and India aim to address the challenges of the semiconductor supply chain and opportunities within the semiconductor industry.
