US and India Team Up to Boost Semiconductor Industry
The US Department of State is partnering with the India Semiconductor Mission, part of India’s Ministry of Electronics and IT, to explore ways to grow and diversify the global semiconductor ecosystem. This collaboration is under the International Technology Security and Innovation (ITSI) Fund, created by the CHIPS Act of 2022.
Strengthening the Semiconductor Supply Chain
This partnership aims to create a more resilient, secure, and sustainable global semiconductor value chain. Kurt Campbell, the US Deputy Secretary of State, emphasized the strategic importance of expanding the US-India partnership. He highlighted that this collaboration is one of the most significant efforts undertaken by the Biden-Harris administration.
INDUS-X and ICET Initiatives
Campbell mentioned that the INDUS-X initiative will be a cornerstone of the US-India Initiative on Critical and Emerging Technology (ICET). This initiative focuses on various sectors, including space, semiconductors, advanced telecommunications, artificial intelligence, quantum biotechnology, and clean energy. The second ICET meeting in June showcased the progress made in these areas.
Defence and Innovation Cooperation
Campbell also discussed the importance of defence innovation cooperation between the two countries. He noted that joint efforts in developing cutting-edge technologies would help maintain a critical advantage for their armed forces. The US and India have taken unprecedented steps to increase operational coordination, information sharing, and defence industrial cooperation.
Funding and Future Plans
Under the INDUS-X initiative, the US and Indian governments have announced USD 1.2 million in seed funding for ten companies. They also plan to launch additional joint challenges and a testing consortium to promote access to testing and experimentation facilities. The initial phase includes a comprehensive assessment of India’s semiconductor ecosystem, regulatory framework, workforce, and infrastructure needs.
CHIPS Act and ITSI Fund
In August 2022, US President Joe Biden signed the CHIPS Act, which provides new funding to boost domestic manufacturing and research of semiconductors. The ITSI Fund, created by the CHIPS Act, allocates USD 500 million over five years to promote secure and trusted telecommunications technologies and semiconductor supply chains.
This collaboration between the US and India highlights the potential to expand India’s semiconductor industry, benefiting both nations and ensuring the global semiconductor supply chain keeps pace with the ongoing digital transformation.
Doubts Revealed
US Department of State -: The US Department of State is a part of the US government that deals with foreign affairs and relationships with other countries.
India Semiconductor Mission -: The India Semiconductor Mission is a program by the Indian government to promote and develop the semiconductor industry in India.
ITSI Fund -: The ITSI Fund is a special fund created to support the semiconductor industry, part of the CHIPS Act of 2022.
CHIPS Act of 2022 -: The CHIPS Act of 2022 is a law in the US that provides money and support to help the semiconductor industry grow.
Semiconductor -: A semiconductor is a material used to make electronic devices like computers and smartphones work.
Kurt Campbell -: Kurt Campbell is a high-ranking official in the US government who helps manage relationships with other countries.
INDUS-X -: INDUS-X is a special initiative to strengthen the partnership between India and the US in technology and innovation.
ICET -: ICET stands for Initiative on Critical and Emerging Technologies, a program to promote new and important technologies between the US and India.
Seed funding -: Seed funding is money given to start a new project or business, like planting a seed to help it grow.
Value chain -: A value chain is the series of steps involved in making a product, from getting raw materials to selling the final product.
