US partners with India Semiconductor Mission to expand global ecosystem

Signed into law in August 2022, the US' CHIPS Act provides $500 million over five years to promote the development of secure and trusted semiconductor supply chains

The US Department of State has announced a collaboration with India’s Semiconductor Mission, under the Union Electronics and IT Ministry, to explore opportunities for expanding and diversifying the global semiconductor ecosystem. The partnership aims to create a more resilient, secure, and sustainable semiconductor value chain worldwide.

United States’ $500 million semiconductor fund

The initiative falls under US International Technology Security and Innovation (ITSI) fund, established by the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act of 2022.

The Act was signed by President Joe Biden in August 2022, to boost domestic research and manufacturing of semiconductors in the US. The fund provides $500 million — $100 million per year over five years, starting 2023, to the department to ensure the adoption of secure and trustworthy networks and ensure semiconductor supply chain security.

“No one country, including the United States, can produce or onshore everything it needs. It is vital that the United States and its partners and allies work together to diversify critical supply chains and collaborate on technologies of the future to support our shared economic growth, security, and democratic values,” US Secretary of State Antony Blinken had said at the time.

Expanding global semiconductor units

During the event, US Deputy Assistant Secretary of State for Trade Policy and Negotiations J Robert Garverick emphasised the importance of this partnership saying, “The US Department of State is working with the Government of India to identify opportunities to expand the global semiconductor ecosystem through the ITSI Fund. Signed into law by President Biden two years ago, the CHIPS Act promotes the development of a secure global semiconductor supply chain.”
 

The initial phase of the partnership includes a detailed assessment of India’s semiconductor ecosystem, evaluating regulatory frameworks, workforce needs, and infrastructure. Insights from this review will lay the foundation for future joint initiatives aimed at strengthening the semiconductor sector.

Garverick emphasised the significance of this collaboration, noting, “The US and India are key partners in ensuring that the global semiconductor supply chain can meet the needs of the ongoing digital transformation. Our cooperation demonstrates the potential for expanding the Indian semiconductor industry, benefiting both nations and much of the world.”

The India Semiconductor Mission (ISM) will play a crucial role in this analysis, with participation expected from Indian state governments, educational institutions, research centres, and private companies. Akash Tripathi, CEO of ISM, stated, "We are pleased to partner with the US in conducting this study to access the ITSI Fund. By completing the study in the coming months, we aim to further strengthen our semiconductor ecosystem."

(With agency inputs)