The United States has gone on a partnership spree for very lucrative semiconductor supply chains, this time with India. Washington is exploring opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security and Innovation (ITSI) Fund via the CHIPS Act of 2022 (CHIPS Act).
The US wants to grow its domestic semiconductor manufacturing, strengthen the economy, and reduce the risk of major global supply disruptions like what happened during the COVID-19 pandemic. It has implemented market-driven incentive programs for a more diversified geographic footprint. Doing so enabled the US to meet domestic demand, particularly for the defense industry, aerospace, and critical infrastructure.
As part of the partnership with New Delhi, the US will carry out a comprehensive assessment of India’s existing semiconductor ecosystem and regulatory framework, workforce, and infrastructure needs.
Also Read: India’s Top Trading Partners In 2024: Featuring China And Russia
US and India are Key Partners Semiconductors
The US, in an official statement, said India is a key partner in ensuring global semiconductor supply keeps up with the global digital transformation. The partnership between the two countries underscores the potential to expand India’s semiconductor industry which will benefit the US as well. The US is working to attract $646 billion in capital investments.
Through various collaborations with key market players, the US is strengthening the global semiconductor ecosystem through private investments in developed and emerging markets. It will increase incentives under the CHIPS Act, including advanced manufacturing investment credit.
Moreover, the US is developing a skilled workforce of engineers, computer scientists, and technicians to meet the demands of the semiconductor industry and the broader economy. The US has realized the importance of semiconductors and the tech industry, thus bringing it to the fore.
