US Secretary of Commerce discusses semiconductors, India telecom Stack with Minister Ashwini Vaishnaw

US Secretary of Commerce Gina M Raimondo met with Minister Ashwini Vaishnaw. The two discussed cooperation on semiconductors, the digital economy and data flow, Open RAN and the Indo-Pacific Economic Framework for Prosperity (IPEF). US Secretary of Commerce Gina M Raimondo and Indian Commerce Minister Piyush Goyal have signed a Memorandum of Understanding (MoU) on semiconductors today.

Ahead of signing the Memorandum of Understanding (MoU) for closer strategic cooperation on semiconductors between the US and India, US Secretary of Commerce Gina Raimondo met with Indian Minister of Electronics & Information Technology Ashwini Vaishnaw. The two discussed a wide range of issues of importance to the U.S.-India commercial relationship, including cooperation on semiconductors, the digital economy and data flows, Open RAN and the Indo-Pacific Economic Framework for Prosperity (IPEF).

According to the Readout of Secretary Raimondo’s Meeting with Indian Minister of Electronics & Information Technology Ashwini Vaishnaw, the two discussed the importance of the United States and the 13 other IPEF partners working to develop the policies that will create more resilient and secure supply chains, accelerate progress on our respective green transitions, and deliver tangible economic benefits for India and all other IPEF partners.

Minister Ashwini Vaishnaw also tweeted about the meeting. He said, "Discussed India's public digital infrastructure, India telecom stack, and cooperation on trusted semiconductor supply chain with @SecRaimondo, US Secretary of Commerce."

As US and India are trying to build a resilient semiconductor supply chain in-house, the two nations are enhancing bilateral collaboration to develop a semiconductor design, manufacturing, and fabrication ecosystem in India.

Relevance of Semiconductor

Semiconductors today power everything on earth – from smartphones to laptops, cars to data centres, and in space – satellites to rockets, and have emerged as the key strategic component for the nation’s growth. The shortage of semiconductors during the COVID-19 pandemic was an eye-opener for many countries, with nations including India, the US and EU announcing incentives for boosting the semiconductor ecosystem in-house.

Chris Miller is an assistant professor of international history at the Fletcher School of Law and Diplomacy at Tufts University and author of the book Chip War: The Fight for the World's Most Critical Technology had told Business Today, “Manufacturing semiconductors is an inevitably international business. Supply chains stretch between over a half dozen countries. No country is self-sufficient in semiconductor production.  Rather than focusing on self-sufficiency or domestic manufacturing per se, countries are better off focusing on ensuring they are not excessively reliant on trade partners they can't trust. Building supply chains with trusted partners is a better strategy than self-sufficiency.”

The US has been restricting China's ability to obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors. And as the nations look at building a trusted and resilient supply chain, India could gain out of this development. “The broader trend of US-China tech tensions and bifurcation of electronics supply chains will support chipmaking efforts in India as multinational firms look for non-Chinese providers,” adds Miller.

Even a 45-minute session discussing the economics of the semiconductor industry at the World Economic Forum at Davos in January this year only recaps the relevance of the chip in today’s world. After all, it is a platform where global leaders shape global, regional and industry agendas. The session had panelists including Pat Gelsinger, CEO of Intel (one of the world’s largest chip manufacturers), Martin Lundstedt, President and Chief Executive Officer, AB Volvo (the leading auto companies), Liesje Schreinemacher, Minister for Foreign Trade and Development Cooperation, Ministry of Foreign Affairs of the Netherlands (home to several companies that provide equipment to the semiconductor manufacturing industry, including ASML), and India’s IT & Electronics Minister Ashwini Vaishnaw. And in the audience were Michigan (USA) Governor Gretchen Whitmer, US Senator for Washington - Maria Cantwell, and US Senator for Ohio Rob Portman. The latter two were involved in passing the US CHIPS Act.