The US and India will sign a memorandum of understanding on semiconductors as both countries discuss investment coordination and continue dialogue on policies to encourage private investment, US Commerce Secretary Gina Raimondo announced on Thursday (Mar 9).

Raimondo is in India for four days and is accompanied by the CEOs of ten US companies. She is scheduled to meet India's trade minister on Friday.

The two nations will map the semiconductor supply chain together and identify opportunities for joint ventures and technology partnerships, Raimondo added.

Under a US$10 billion incentive plan for chip and display production, India is attempting to attract more large-scale investments in order to become a key player in the global supply chain.

The South Asian nation raised fiscal support for new local semiconductor facilities to cover 50% of project costs last year.