India-US Sign MoU On Semiconductor Supply Chain, Technology To Shape Future Bilateral Relation

As Prime Minister Narendra Modi visits the US President Joseph R. Biden, the two have signed an MoU on semiconductor supply chain and innovation partnership to initiate coordination on semiconductor incentive programs between the two countries. 

In a statement the White House said, this is a significant step towards exploring commercial opportunities, research, talent, and skill development. The two leaders hailed an announcement by Micron Technology, Inc. about an investment of $825 Mn to develop a new semiconductor assembly and test facility in India with support from the Indian government.

Estimates are that the combined investment of $2.75 Bn valuation is going to generate up to 5,000 new direct and 15,000 community jobs opportunities in next five years. 

In addition to this, the leaders also welcomed Lam Research’s proposal to train 60,000 Indian engineers through its Semiverse Solution to upskill them with semiconductor knowledge. Also, an announcement by Applied Materials to invest $400 Mn to establish a collaborative engineering centre in India, was hailed by the two. 

Further, Modi and Biden welcomed the decision of NASA and ISRO to develop a strategic framework for human spaceflight cooperation by the end of 2023. The decision and announcement made by NASA to train some of its astronauts at the Johnson Space Center in Texas as a joint effort to the International Space Station in 2024 was also discussed by the two leaders during the meeting. 

Additionally, President Biden welcomed India’s Space Policy – 2023 and called for enhanced commercial collaboration between the U.S. and Indian businesses in the aerospace sector to address the export controls and facilitate technology transfer.

During the meeting Modi and Biden affirmed that technology is going to define the Indo-US relationship going ahead. According to them, the initiative on Critical and Emerging Technology (iCET) in January 2023 was a major milestone of this strategic relation. The two leaders committed to foster an open, accessible, and secure technology ecosystem between the two nations, based on mutual confidence and trust that reinforces shared values and democratic institutions. 

Modi also met Tesla chief Elon Musk during his visit. Addressing the media, Musk said that he is a “Modi fan”. He furthered, “I am confident that Tesla will be in India and will do so as soon as humanly possible.”

These statements came a month after Tesla representatives landed in India to meet key ministries, including the Ministry of Electronics and Information Technology (MeitY) and the Ministry of Heavy Industries.