The United States and India are taking significant steps to expand the global semiconductor supply chain, under India’s Ministry of Electronics and IT. This initiative is supported by the International Technology Security and Innovation (ITSI) fund, established through the CHIPS Act of 2022.
The CHIPS Act, signed by U.S. President Joe Biden in August 2022, was created to boost semiconductor manufacturing and research within the United States. It established the ITSI Fund, which allocates $500 million over five years ($100 million per year) to support secure and trusted telecommunications technologies and semiconductor supply chains.
Semiconductors are critical components in a wide range of products, from vehicles to medical devices, making their reliable supply essential. The growing partnership between the U.S. and India aims to build a more resilient and secure global semiconductor value chain that remains strong amid increasing digital demands.
The initial phase involves a comprehensive assessment of India’s current semiconductor ecosystem, including its regulatory framework, workforce capabilities, and infrastructure. Key stakeholders in India, such as state governments, educational institutions, research centers, and private companies, are expected to participate in this analysis. This assessment will provide the groundwork for future joint initiatives to enhance the sector further.
This partnership reflects the growing alignment of strategic interests between the U.S. and India, particularly in the technology sector. U.S. Deputy Secretary of State Kurt Campbell emphasized that expanding the U.S.-India partnership is one of the most critical efforts of the Biden-Harris administration. The U.S.-India Initiative on Critical and Emerging Technology (ICET) has accelerated their strategic cooperation, covering areas such as space, semiconductors, artificial intelligence, and clean energy.
The collaboration under the CHIPS Act has the potential to transform the global semiconductor ecosystem. As both countries work together to strengthen their supply chains, they will also open new opportunities for research, innovation, and development in critical technologies.
