New Delhi: India and the US are set to sign an agreement on semiconductor cooperation, US Commerce Secretary Gina Raimondo told reporters on Wednesday, as the two countries held talks about coordinating semiconductor incentive plans to end the race for subsidies and Shortage of supply can be prevented. of this important technique.
Under the Memorandum of Understanding (MoU), both countries will share information about commercial potential in the semiconductor ecosystem and commit to maintain discussions to encourage private sector investment. The agreement will also cover supply chain mapping, technology joint ventures, development of skills and research and development partnerships. “We are looking for near-term business opportunities, but at the same time, we are looking for a long-term strategic opportunity here because this is not a one-year collaboration. We think this will benefit the US semiconductor industry and India Between 5, 10, 20 years of collaboration.” Raimondo said.
India and the US are seeking to cooperate on semiconductor policies to address supply chain challenges and reduce dependence on China. With both countries separately aiming to boost private sector investment in the vital semiconductor industry, India has launched a $10 billion incentive plan to lure large investment in chip manufacturing as it looks to build capacity locally. tries to.
“The discussions we’ve had are about providing transparency in our incentives and coordinating and collaborating on how we operate our semiconductor initiatives. We are working to stop over-subsidizing certain areas or subsidizing such that there is an overabundance of certain types of chips,” she said.
“This is also a huge opportunity to share information, coordinate our implementation, map the supply chain together and come up with an alignment around our senses of demand for semiconductors and whether or not more supply is needed. We are the original We strongly feel that we can achieve greater benefits for both countries if we cooperate in the implementation of our CHIPS programs.”
Raimondo underlined the US’s willingness to work together with partners such as India to reduce supply chain vulnerabilities. Speaking at an event earlier on Tuesday, he said the US had become overly dependent on a few sources of supply for semiconductors, such as Taiwan. Diversifying supply chains will be a key focus for US firms looking to invest in India.
However, Raimondo also admitted that there is currently no investment proposal from American companies in the Indian market.
He also pointed out that high tariffs on some input components for semiconductors continue to be a challenge for US businesses in India. In addition, navigating the regulatory gap between central and state regulations is also a challenge. Semiconductor collaboration has captured the imagination of policy makers in New Delhi and Washington. Raimondo’s announcement on semiconductors comes months after the two countries unveiled initiatives on Critical and Emerging Technologies. The programme, which will be largely driven by national security elites in both countries, will seek collaboration on critical new technologies such as 5G, 6G and semiconductors.
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