US and India Collaborate to Strengthen Global Semiconductor Supply Chain through CHIPS Act
The US Department of State has partnered with India’s Semiconductor Mission (ISM), which operates under the Ministry of Electronics and Information Technology, to strengthen and diversify the global semiconductor supply chain. This collaboration, part of the International Technology Security and Innovation (ITSI) Fund created under the CHIPS Act of 2022, seeks to create a more robust, secure, and sustainable global semiconductor network.
J Robert Garverick, US Deputy Assistant Secretary of State for Trade Policy and Negotiations, highlighted the significance of the US-India partnership in his announcement. He explained that the ITSI Fund, established as part of President Biden's CHIPS Act, aims to support secure semiconductor supply chains and telecommunications systems worldwide. “Our partnership with India is a key step towards achieving these goals and ensuring a stronger semiconductor ecosystem”, Garverick noted.
The collaboration's first phase will involve a comprehensive evaluation of India’s semiconductor industry, focusing on its regulatory framework and infrastructure. The insights gained from this review will inform potential joint initiatives aimed at strengthening the sector. Garverick emphasized that the partnership between the two countries is essential for maintaining the pace of digital transformation and supply chain resilience. Supply chain logistics will also be a focus of the collaboration.
Indian stakeholders, including state governments, academic institutions, research centers, and private companies, will actively participate in this assessment. Akash Tripathi, CEO of the India Semiconductor Mission, expressed enthusiasm about the initiative, announcing plans for India to collaborate with the US on a study to access the ITSI Fund. “We aim to complete this study in the next few months to enhance our semiconductor ecosystem,” Tripathi stated.
The ITSI Fund, part of the CHIPS Act, provides $500 million over five years to support secure semiconductor supply chains, telecommunications technologies, and similar initiatives in collaboration with US allies and partners. The CHIPS Act, signed by US President Joe Biden in August 2022, was designed to boost domestic semiconductor manufacturing and research.
This new collaboration builds upon a Memorandum of Understanding (MoU) signed between the US and India in March 2023, under the framework of the India-US Commercial Dialogue. The MoU outlines a joint approach to ensuring semiconductor supply chain resiliency and diversification. It aims to leverage the complementary strengths of both nations and create commercial opportunities in the semiconductor innovation space, focusing on research and development, talent, and skills development.
This partnership is expected to drive technological growth and innovation while ensuring the stability of the global semiconductor supply chain.