The U.S. State Department has announced a strategic partnership with India’s government to bolster semiconductor manufacturing. This initiative is part of the International Technology and Innovation Fund (ITSI), a U.S. State Department program aimed at fostering global partnerships to develop and fortify the U.S. semiconductor supply chain.
India’s role in the ITSI will commence with a thorough evaluation of its semiconductor industry, identifying the requirements for expansion, particularly in terms of workforce and infrastructure. This assessment will involve collaborations with local governments, educational institutions, research centers, and private companies.
Aiming for Global Semiconductor Supply Chain Resilience
The State Department emphasized the importance of the U.S. and India as key partners in ensuring the global semiconductor supply chain keeps up with the ongoing global digital transformation. The collaboration between the two nations highlights the potential to expand India’s semiconductor industry, benefiting both countries.
The ITSI is financed by $500 million from the 2022 CHIPS Act, with the funds distributed over five years starting in 2023. Other partner nations in this initiative include Costa Rica, Mexico, the Philippines, and Vietnam. The projects in these countries vary from sourcing rare metals used in semiconductor fabrication to formulating economic policies to incentivize manufacturing.
The partnership between the U.S. and India is a significant step in strengthening the global semiconductor supply chain. Through collaborative efforts and strategic investments, both countries are working towards a more resilient and efficient semiconductor industry to meet the demands of the digital era.
