India-US Boost Cooperation on Semiconductors and Critical Minerals

India and the US have decided to enhance collaboration and engagement in areas such as supply chains, semiconductors and critical minerals. This agreement was reached during the meeting of the India-US Initiative on Critical and Emerging Technology (iCET), which was led by Indian National Security Adviser Ajit Doval and his US counterpart Jake Sullivan in New Delhi.

India and the US have initiated a new strategic partnership for developing semiconductor design and manufacturing processes, focusing on precision-guided ammunition. "Launching a new strategic semiconductor partnership between General Atomics and 3rdiTech to co-develop semiconductor design and manufacturing for precision-guided ammunition and other national security-focused electronics platforms", read the fact sheet issued by the US and India.

Semiconductors have grown into a key geopolitical battleground, with the US, Japan and China investing heavily in developing domestic capabilities. "Celebrating the conclusion of a joint Semiconductor Readiness Assessment through a partnership between the US Semiconductor Industry Association and the India Electronics Semiconductor Association, which identifies near-term industry opportunities and facilitates longer-term strategic development of complementary semiconductor ecosystems", the factsheet added.

This collaboration with Indian and US investors in the Indian semiconductor industry aims to further develop India's strong semiconductor and information communication technology ecosystem. Notably, in March, India approved three semiconductor plant proposals, seeking to strengthen its semiconductor manufacturing capabilities. These projects involve an estimated investment of Rs 1.26 lakh crore and are anticipated to significantly boost India's electronics manufacturing sector.

Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp. (PSMC) are set to establish India's first semiconductor fabrication plant (fab) in Dholera, Gujarat. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will build a semiconductor unit in Morigaon, Assam. Meanwhile, CG Power, in collaboration with Japan's Renesas Electronics Corp. and Thailand's Stars Microelectronics, will set up a semiconductor unit in Sanand, Gujarat.

US and India also aimed to work together to ensure a reliable supply of critical minerals, which are essential for clean energy technologies and other important industries. "Promoting India's vital role in the Mineral Security Partnership, including through co-investing in a lithium resource project in South America and a rare earths deposit in Africa, to responsibly and sustainably diversify critical mineral supply chains", read the fact sheet.

The two countries agreed to establish an India-US Advanced Materials R&D Forum alongside the India-U.S. Joint Committee Meeting on Science and Technology. This forum aims to enhance collaboration between American and Indian universities, national laboratories, and private sector researchers. They also pledged to promptly finalize a bilateral Critical Minerals Memorandum of Understanding between the US Department of Commerce and the Indian Ministry of Commerce and Industry, as well as the Ministry of Mines. Additionally, they committed to exploring further cooperation in critical mineral supply chains, including for graphite, gallium, and germanium.

"Exploring opportunities for collaboration in the critical minerals sector like bilateral collaboration in technologies for Neodymium-iron-boron metal, alloy and magnet making, collaboration with Department of Energy entities; Advancing Indian collaboration with U.S. organizations and companies for carrying out research studies for beneficiation of critical minerals, including lithium, titanium, gallium, and vanadium", added the fact sheet.

The two countries agreed to develop a joint program between the Geological Survey of India and the US Geological Survey focused on the exploration, characterization, and evaluation of rare earth elements and critical mineral deposits.