The U.S. Department of State and the Indian Ministry of Electronics and Information Technology have agreed to explore collaborative opportunities to create a more resilient, secure and sustainable global semiconductor ecosystem.
The International Technology Security and Innovation Fund, which provides the State Department with $500 million over five years, and the India Semiconductor Mission, which invests $9 billion in semiconductor manufacturing, will support the partnership. They will initially focus on assessing India’s existing semiconductor ecosystem and regulatory framework and related workforce and infrastructure needs.
The ITSI Fund was created under the CHIPS and Science Act, signed into law in August 2022, to support telecommunications technology and semiconductor supply chain development and other related programs and initiatives with U.S. allies and partners.
According to the State Department, the analysis is expected to involve Indian state governments, educational institutions, research centers and private companies, among other key stakeholders, informing potential joint initiatives and helping expand the Indian semiconductor industry to benefit both countries.
The U.S. made a similar partnership with Indonesia in 2023 as it faces technological competition with China.
Under the Biden administration, the U.S. is strengthening its domestic semiconductor manufacturing capabilities and helping allies boost their local chip production capacity to diversify the global semiconductor supply chain. Commerce Secretary Gina Raimondo has been working toward supply chain resilience, noting in a recent interview the risks involved in being dependent on only a few chip manufacturing countries.