A memorandum of understanding is likely to be signed by India and the US, enabling upper-hand control for India on semiconductors supply chains.               

The US Secretary of Commerce, Gina Raimondo stated that India and the US will sign a memorandum of understanding (MoU) on cooperation in semiconductors. The pact aims at proffering a greater role for India in diversified supply chains and thereby, identifying critical opportunities for joint ventures and technology partnerships.

A new initiative was proposed by Mrs. Raimondo and the external affairs minister S Jaishankar– the India-US Strategic Trade Dialogue, focusing on aligning the export control regimes of both the democratic nations for critical technologies.

Mrs. Raimondo and her Indian counterpart, Piyush Goyal are co-chairing the India-US commercial dialogue post a long gap of nearly three years. The summit aims at discussing ways to drive trade and investment, following the launch of the inauguration of the initiative on Critical and Emerging Technology (iCET).

Mrs. Raimondo expressed the interest of the United States in witnessing India playing an upper hand in the electronic supply chain, where MoU stands as a testament. Both India and the US are aiming to implement separate incentive programs for the semiconductor space while coordinating their respective semiconductor initiatives. It aims at sharing information, preventing over-subsiding of integrated kinds of chips, a joint mapping of supply chains, and alignments per the demand for semiconductors.

Both countries are introducing incentive schemes for Creating Helpful Incentives to Produce Semiconductors and Science Act (CHIPS), rebuilding their manufacturing and supply chains, and releasing the dependency on political conflict-driven nations. The MoU defines the pattern of sharing information about semiconductor commercial opportunities between the two nations, and a continued dialogue around policies, encouraging private sector investment in the semiconductor ecosystem.

Mrs. Raimondo insisted that a joint mapping of the supply chain will help both nations critically identify opportunities for joint ventures, technology partnerships, job training, and research and development partnerships. The pact will excel as a 1- or 20-year collaboration between the US semiconductor space and the electronic supply chains of India.