An assessment of India’s semiconductor ecosystem will be undertaken and the insights will serve as the basis for potential future joint initiatives, said US
The move will also enable the two countries to diversify the semiconductor supply chain and cut the global overdependence on China
This comes ahead of the three-day SEMICON India 2024 summit, which will be organised from September 11 in Delhi NCR
The US’ department of state said it will partner with the India Semiconductor Mission (ISM) to explore “opportunities to grow and diversify” the global semiconductor ecosystem.
The partnership will help create a more resilient, secure, and sustainable global semiconductor value chain, the department said in a statement on Monday (September 10).
As part of the collaboration, ISM will conduct a comprehensive assessment of India’s existing semiconductor ecosystem, including regulatory framework, workforce and infrastructure needs, during the initial phase of the project.
“The insights gained from the assessment will serve as the basis for potential future joint initiatives to strengthen and grow this critical sector,” the statement added.
The US expects state governments, educational institutions, research centres, and enterprises to participate in the analysis “steered by the India Semiconductor Mission”. It added that the collaboration will be undertaken under the International Technology Security and Innovation (ITSI) Fund, envisaged under the US CHIPS Act, 2022.
The fund, with a total outlay of $500 Mn, envisages the development of secure semiconductor supply chains in collaboration between US and its allies.
The move will also enable the two countries to diversify the semiconductor supply chain and cut the global overdependence on a handful of a few countries.
“Manufacturing of essential products ranging from vehicles to medical devices relies on the strength and resilience of the semiconductor supply chain. This collaboration between the United States and India underscores the potential to expand India’s semiconductor industry to the benefit of both nations,” the statement said.
The development came just a couple of days ahead of the three-day SEMICON India 2024 summit, which will be organised from September 11 in Delhi NCR. Prime minister Narendra Modi will inaugurate the summit and address the gathering.
The event will bring together industry leaders, policymakers, entrepreneurs, and academics under a single roof with an agenda to strengthen India’s position in the global semiconductor ecosystem.
The Centre introduced the Semicon India program in 2021 by allocating INR 76,000 Cr to provide incentive support to players in the burgeoning sector. Following that, the ISM was launched in 2022 to foster a robust semiconductor and display ecosystem.
As per an Inc42 report, the Indian semiconductor space is projected to reach a market size of $150 Bn by 2030.
