The U.S. and India Join Forces on Semiconductors

by | 24. Sep 2024 - 09:39 | Politics

Biden and Modi announced a “landmark agreement” aimed at producing infrared, gallium nitride, and silicon carbide semiconductors, including for national security purposes.

India and the U.S. have announced the joint construction of a factory for infrared, gallium nitride, and silicon carbide semiconductors on the subcontinent. The “watershed arrangement” was revealed in a joint statement by U.S. President Joe Biden and Indian Prime Minister Narendra Modi. The facility is set to produce “advanced sensing, communication, and power electronics for national security, next generation telecommunications, and green energy applications.”

The project will be facilitated through a strategic technology partnership between Indian companies Bharat Semi and 3rdiTech, along with the U.S. Space Force. Further support is planned through the India Semiconductor Mission, part of the Indian Ministry of Electronics and Information Technology. According to the Economic Times (Paywall), the initiative is part of Modi’s vision to transform India from a consumer of semiconductor chips into a manufacturer. Currently, India imports semiconductors worth one billion U.S. dollars annually for national security alone.

According to the statement, India and the U.S. also plan to expand their existing global and strategic partnership in other technology sectors, as well as areas such as defense and healthcare. Both nations aim to mobilize around one billion dollars for Indian clean energy supply chains through the International Bank for Reconstruction and Development (IBRD).

Biden and Modi’s discussions took place during a meeting of the Quad group, which includes Australia and Japan, alongside India and the U.S., and is seen as a counterbalance to China’s influence in the Indo-Pacific. Amid increasing geopolitical tensions, the U.S. implemented measures two years ago to restrict China’s access to chips. In apparent response, China imposed export controls on gallium and germanium, critical raw materials for the semiconductor industry last summer.

Photo: iStock/Trifonov_Evgeniy

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