US announces partnership with India in semiconductor sector

The US Department of State has announced a partnership with India to explore opportunities to expand and diversify the global semiconductor ecosystem. This initiative will be funded under the International Technology Security and Innovation (ITSI) Fund, established by the CHIPS Act of 2022, which aims to boost domestic semiconductor manufacturing and research in the US.

The CHIPS Act also created the ITSI Fund, providing the US Department of State with $500 million to promote the development and adoption of secure telecommunications technologies, strengthen semiconductor supply chains, and support other initiatives with international partners.

“This partnership with India will help create a more resilient, secure, and sustainable global semiconductor value chain,” the US State Department said. The US will collaborate with India’s Semiconductor Mission under the Ministry of Electronics and IT.

The initial phase involves a comprehensive assessment of India’s existing semiconductor ecosystem, including its regulatory framework, workforce, and infrastructure needs.

The US anticipates that key Indian stakeholders — such as state governments, educational institutions, research centres, and private companies — will participate in this analysis, led by the India Semiconductor Mission. The insights gained will inform potential future joint initiatives to strengthen this critical sector.

The US and India are key partners in maintaining a robust global semiconductor supply chain, which is essential for manufacturing products ranging from vehicles to medical devices.

The focus on semiconductor manufacturing in India is part of the broader goals of the Quad (India, US, Japan, and Australia). In a September 2021 joint statement, the Quad announced a joint initiative to map capacity, identify vulnerabilities, and enhance supply chain security for semiconductors and their vital components.

The emphasis on this collaboration was reiterated in January 2023, when the US-India ‘Initiative on Critical and Emerging Technology (iCET)’ was announced, committing to support the development of a semiconductor design, manufacturing, and fabrication ecosystem in India.