US and India Strengthen Global Semiconductor Supply Chain through CHIPS Act Partnership
The United States Department of State and India’s Semiconductor Mission (ISM) under the Ministry of Electronics and Information Technology have initiated a collaborative effort to enhance and diversify the global semiconductor supply chain. This partnership, part of the International Technology Security and Innovation (ITSI) Fund established under the CHIPS Act of 2022, aims to create a more resilient, secure, and sustainable global semiconductor ecosystem.
The announcement was made by J Robert Garverick, US Deputy Assistant Secretary of State for Trade Policy and Negotiations, during a recent event. Garverick emphasized the importance of the US-India partnership in strengthening semiconductor supply chains. He stated that the ITSI Fund, created as part of President Biden’s CHIPS Act, is intended to promote secure global semiconductor networks and telecommunications infrastructure. “This collaboration with India is a critical step in advancing our shared objectives of building a secure and diverse semiconductor value chain”, Garverick said.
The initial phase of this partnership involves a detailed assessment of India’s semiconductor ecosystem, including its regulatory framework and infrastructure. The findings will lay the groundwork for future joint initiatives aimed at bolstering the sector. "Cooperation between the US and India will be essential in ensuring that the global semiconductor supply chain can keep up with the rapid pace of digital transformation", Garverick added. The partnership will also explore opportunities in supply chain logistics.
Indian stakeholders, including state governments, research institutions, educational establishments, and private companies, are expected to play a key role in this assessment. Akash Tripathi, CEO of the India Semiconductor Mission, expressed optimism about the collaboration, stating that India will soon begin a study with the US to access the ITSI Fund. "We aim to complete the study in the coming months to further strengthen our semiconductor ecosystem", Tripathi said.
The ITSI Fund, part of the CHIPS Act, allocates $500 million over five years to support secure telecommunications technologies, semiconductor supply chains, and other initiatives in collaboration with US allies and partners. The CHIPS Act, signed by President Biden in August 2022, aims to bolster semiconductor manufacturing and research in the US.
This collaboration builds on the Memorandum of Understanding (MoU) signed in March 2023, which established a framework for semiconductor supply chain and innovation partnership between the two nations. The MoU, signed under the India-US Commercial Dialogue framework, focuses on creating a resilient and diversified semiconductor supply chain. It also aims to leverage the complementary strengths of the US and India in areas such as research and development, talent, and skill development.
This partnership is expected to open up commercial opportunities and foster the development of semiconductor innovation ecosystems in both countries, further cementing their commitment to technological advancement and supply chain security.
