On Thursday, US President Joe Biden reiterated the United States’ commitment to fortify the semiconductor supply chain, with a particular focus on collaborative efforts involving key nations, including India.
During his remarks at the APEC CEO Summit, President Biden emphasized the significance of collaboration with India, Japan, the Republic of Korea, and Singapore to strengthen the critical semiconductor industry. He highlighted the launch of new initiatives aimed at shaping technologies and standards to drive transformation in the semiconductor sector.
India, specifically mentioned by President Biden, is expected to play a crucial role in this global initiative, signifying a shared commitment to technological advancement and underlining India’s strategic importance in the global technology landscape.
The strengthened partnership between the United States and India in the semiconductor domain is a result of a Memorandum of Understanding (MoU) signed in March this year during the India-USA Commercial Dialogue. The MoU focuses on semiconductor supply chain resiliency and diversification, aligning with the US’s CHIPS and Science Act and India’s semiconductor Mission.
The collaborative mechanism established by the MoU aims to leverage the complementary strengths of both countries, facilitating commercial opportunities and the development of semiconductor innovation ecosystems. It envisions mutually beneficial research and development, as well as talent and skill development.
The White House Factsheet highlighted specific initiatives, including Micron Technology, Inc’s investment of over USD 800 million in a new semiconductor assembly and test facility in India, supported by the India Semiconductor Mission. Applied Materials also announced the construction of a Semiconductor Centre for Commercialisation and Innovation in India to further diversify the semiconductor supply chain.
India and the US have seen robust growth in bilateral trade, with the US being India’s largest trading partner. The total trade in goods and services is expected to surpass USD 180 billion, with the US being the third-largest source of foreign direct investment (FDI) for India.
This development comes as leaders from the 21-member Asia-Pacific Economic Cooperation Forum gather in San Francisco for the 30th APEC Leadership Summit. India, while not part of APEC, is being represented by its Commerce and Industry Minister Piyush Goyal at the summit, following an invitation from President Biden.