U.S. and India forge partnership to strengthen semiconductor supply chain

The U.S. Department of State is collaborating with India’s Semiconductor Mission, part of the Ministry of Electronics and IT, to explore and enhance global semiconductor supply chain opportunities. This initiative, supported by the International Technology Security and Innovation (ITSI) Fund created by the CHIPS Act of 2022, aims to build a more resilient, secure, and sustainable semiconductor ecosystem.

The first phase involves a thorough evaluation of India’s semiconductor infrastructure, regulatory environment, and workforce needs. This assessment will include input from key Indian stakeholders such as state governments, educational institutions, research centers, and private enterprises, guided by the India Semiconductor Mission. The findings will inform future collaborative efforts to strengthen and expand this vital sector.

The partnership underscores the commitment of both nations to ensure the semiconductor supply chain evolves in line with the global digital transformation. Given the critical role semiconductors play in various essential products—from vehicles to medical devices—this collaboration holds significant potential for advancing the semiconductor industry in both countries.

The CHIPS Act, signed into law by President Biden in August 2022, allocated new funding to enhance domestic semiconductor manufacturing and research in the U.S. The ITSI Fund, a key component of the Act, provides $500 million over five years to support secure and trusted technology development, including semiconductor supply chain initiatives with international allies.