India, US ink MoU on semiconductor supply chain with focus on R&D, workforce development

In a big thumbs up for India’s semiconductor Mission, the United States of America has signed a Memorandum of Understanding (MoU) on the semiconductor supply chain and 'Innovation Partnership' with India. The MoU was signed by US Secretary of Commerce Gina M. Raimondo and Union Commerce & Industry minister Piyush Goyal during the India-USA Commercial Dialogue in Delhi.  

The MoU signed between the two nations seeks to establish a collaborative mechanism for the semiconductor supply chain resiliency and diversification in view of US' 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.

Earlier this year, US and India elevated their strategic partnership under iCET by launching initiatives to expand their technology partnership. To elevate and expand strategic technology partnership and defence industrial cooperation between the governments, businesses, and academic institutions of the United States of America and India, the first inaugural meeting under Critical and Emerging Technology (iCET) was hosted by the U.S.-India Business Council with the US Secretary of Commerce, US National Security Advisor Jake Sullivan, and Indian National Security Advisor Ajit Doval, and other senior US and Indian officials. 

The two nations underlined their commitment to resolving regulatory barriers to business and talent mobility in both countries. They are launching new bilateral initiatives and welcoming new cooperation between governments, industry, and academia.

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; supporting the development of a semiconductor design, manufacturing, and fabrication ecosystem in India. They will work towards leveraging complementary strengths and 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.

The US Semiconductor Industry Association (SIA) and the India Electronics Semiconductor Association (IESA) will form a task force to develop a “readiness assessment” to identify near-term industry opportunities with participation from the Government of India Semiconductor Mission. They will also facilitate the longer-term strategic development of complementary semiconductor ecosystems. This task force will make recommendations to the US Department of Commerce and the India Semiconductor Mission on opportunities and challenges in the global semiconductor value chain.  The task force will also identify and facilitate workforce development, R&D, advanced packaging, and exchange opportunities to benefit both countries.
 

Also read: US finds India as a trusted partner for diversifying semiconductor supply chain, to sign an MoU

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