Indian ambitions to become a chip-making powerhouse took a huge step forward as it agreed to establish a manufacturing plant in league with the US.
Narendra Modi, the Prime Minister of India, agreed the joint development with US President Joe Biden during a visit to the nation. The plant will focus on producing infrared, gallium nitride and silicon carbide semiconductors, with funding from the government-backed India Semiconductor Mission along with a partnership between the US Space Force, and specialist companies 3rdiTech and Bharat Semi.
The US declared the arrangement a “watershed”, pointing to ongoing efforts between the nations to shore up semiconductor supply chains by advancing R&D and manufacturing, including a move by chip maker GlobalFoundries to establish a facility in Indian city Kolkata focused on “game-changing advances” in products for vehicles, the IoT, AI and data centres.
GlobalFoundries “plans to explore longer-term cross-border manufacturing and technology partnerships with India”, the US stated, pointing to potential job creation benefits for both nations.
The premiers outlined a partnership between various government departments involving the International Technology Security and Innovation fund, which US government information explains forms part of the CHIPS and Science Act and provides up to $100 million per year over a five-year span to the Department of State to develop and implement “secure and trustworthy telecommunications networks, and ensure semiconductor supply chain security and diversification”.
Modi and Biden unveiled the commitment during the fourth Quad Leaders’ Summit, a meeting between the leaders of the US, India, Japan and Australia.
The meeting comes as India is upping its capabilities in the semiconductor sector as part of a broader economic growth plan.
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