India-US initiative on critical and emerging technology to ensure no abuse of supply chains: Rajeev Chandrasekhar

China’s decision to impose export controls on two critical rare elements–gallium and germanium–necessary for semiconductor manufacturing, in response to curbs imposed by the United States and European counties, is likely to disrupt the chip supply chain across the world. As India aims to emerge and develop as a semiconductor nation and a globally trusted partner for electronics manufacturing, Rajeev Chandrasekhar, Minister of State, Ministry of Electronics and IT, told Business Today exclusively that the recent partnership with the US will prevent India from such supply chain disruptions.

“The India-US initiative on Critical & Emerging Technology (iCET) precisely ensures that there is no such control or abuse of supply chains. This India-US initiative on Critical & Emerging Technology also covers materials,” said Chandrasekhar. 

To expand strategic technology partnership and defence industrial cooperation between the governments, businesses, and academic institutions of the United States and India, in May last year, President Joe Biden and Prime Minister Narendra Modi had announced the US-India initiative on Critical and Emerging Technology. During the inaugural meeting of iCET in Washington, DC, in January, the two sides discussed opportunities for greater cooperation and identified biotechnology, advanced materials, and rare earth processing technology as areas for future cooperation.

Chandrasekhar added, “The world today is working closely with a new India to develop trusted global supply chains. Under PM Narendra Modi ji, India-US partnership as well as India’s partnerships with like-minded countries will define the future of technology & global supply chains.”

Under iCET, both India and USA are focusing on building a resilient semiconductor supply chain in-house. The nations are enhancing bilateral collaboration on resilient semiconductor supply chains along with supporting the development of a semiconductor design, manufacturing, and fabrication ecosystem in India; and leveraging complementary strengths, both countries intend to promote the development of a skilled workforce that will support global semiconductor supply chains and encourage the development of joint ventures and technology partnerships on mature technology nodes and packaging in India. 

Later in March, the United States signed a Memorandum of Understanding (MoU) on Semiconductor Supply Chain and Innovation Partnership with India. The MoU was signed between US Secretary of Commerce Gina M. Raimondo and Union Commerce and Industry Minister Piyush Goyal during India-USA Commercial Dialogue in Delhi.  The MoU signed between the two nations seeks to establish a collaborative mechanism between the two governments on Semiconductor Supply chain resiliency and diversification in view of US’s CHIPS and Science Act and India’s Semiconductor Mission. While more details on the MoU are awaited, industry experts believe the move will help India with its semiconductor mission.