US, India partners to explore semiconductor supply chain opportunities

By Sahil Pandey

The US Department of State is partnering with the India Semiconductor Mission of the Union Electronics and IT Ministry to explore opportunities for growing and diversifying the global semiconductor ecosystem under the International Technology Security and Innovation (ITSI) Fund, created by the CHIPS Act of 2022.

This partnership aims to create a more resilient, secure, and sustainable global semiconductor value chain.

Speaking at the event, US Deputy Assistant Secretary of State for Trade Policy and Negotiations, J Robert Garverick, from the Bureau of Economic and Business Affairs (EB), said, “The Department of State is partnering with the Government of India to explore opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security and Innovation Fund. President Biden signed the CHIPS Act in the US two years ago, establishing the ITSI Fund to promote the development of a secure global semiconductor supply chain and telecommunications networks.”

The initial phase includes a comprehensive assessment of India’s existing semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs.

He also said, “Insights gained from this review will serve as the foundation for potential joint initiatives to strengthen this critical sector. The US and India are key partners in ensuring that the global semiconductor supply chain keeps pace with the ongoing global digital transformation. Our cooperation underscores the potential to expand the Indian semiconductor industry to benefit both nations and much of the rest of the world. Our global partnership will extend to supply chain logistics.”

The US Department of State anticipates that key Indian stakeholders, including state governments, educational institutions, research centres, and private companies, will participate in this analysis, which will be steered by the India Semiconductor Mission.

Akash Tripathi, CEO of the India Semiconductor Mission (ISM), stated, “To extend our partnership with the US, we are announcing that we will be engaging in and conducting a study with them to access the ITSI Fund. The US needs to study the entire ecosystem to understand the gaps and needs of the semiconductor industry in India. We are happy to partner with them in facilitating this study. We intend to complete the study in the next couple of months so that we can access the ITSI Fund and further boost our semiconductor ecosystem in its entirety.”

In August 2022, US President Joe Biden signed the CHIPS Act, a US law that allocated new funding to boost domestic manufacturing and research of semiconductors in the United States.

The CHIPS Act also created the ITSI Fund, which provides the US Department of State with USD 500 million (USD 100 million per year over five years, starting in Fiscal Year 2023) to promote the development and adoption of secure and trusted telecommunications technologies, secure semiconductor supply chains, and other programmes and initiatives with US allies and partners.