According to U.S. Commerce Secretary Gina Raimondo on Thursday, The United States and India will sign a memorandum of understanding on semiconductors as they talk about investment coordination and continue their discussion on the best ways to encourage private investment. On Friday, Raimondo will meet with India’s trade minister. Raimondo is traveling to India for four days with the CEOs of ten US companies.
Together, the two countries will map the supply chain for semiconductors and look for prospects for joint ventures and technological collaborations, Raimondo said.
With a $10 billion incentive programme for chip and display manufacture, India has been attempting to draw in additional high-value investments in order to establish itself as a major player in the global supply chain.
The South Asian country acquired funding last year to cover 50% of the project costs for brand-new domestic semiconductor plants.
According to her, the MoU between India and the US would provide a framework for the two countries to try to capitalize on their synergies and investigate possibilities for joint ventures and technological alliances for the production of semiconductor chips.
In order to address the global chip shortage brought on by the supply-chain disruption caused by the Covid-19 pandemic, China’s stockpiling, and the Russia-Ukraine conflict, both Prime Minister Narendra Modi’s government in New Delhi and President Joe Biden’s administration in Washington DC announced incentives to increase semiconductor manufacturing in India and the US. The auto industry and the production of electrical items were hampered by the crisis. In addition to other countries, India and the US are increasingly concentrating on creating a robust and diversified semiconductor chip supply chain.
