India And US Partner To Build National Security Semiconductor Fabrication Unit

India and the United States have declared a partnership to build a national security semiconductor fabrication unit. This collaboration, declared during talks between Prime Minister Narendra Modi and President Joe Biden in Wilmington, is a step towards enhancing the two countries' defence and telecommunications abilities.

The joint project, called a ‘watershed arrangement,’ marks India and the United States' first semiconductor fabrication alliance. It is being compared in importance to the landmark civil nuclear agreement, pressing upon the crucial role of modern technology in military and strategic settings.

The new semiconductor production plant will manufacture advanced sensor, communication and power circuits. It will produce critical components such as infrared, gallium nitride and silicon carbide semiconductors. This program is supported by the India Semiconductor Mission and is a strategic collaboration between Bharat Semi, 3rdiTech and the United States Space Force.

According to the fact sheet produced following the Modi-Biden meetings, the project's goal is to build a resilient and secure semiconductor supply chain, which is critical for national security and next-generation telecommunications. The leaders also spoke about the initiatives to strengthen research and development collaboration in chip manufacturing, with the goal of increasing both countries' technological capabilities.

The declaration included GlobalFoundries' construction of the GF Kolkata Power Centre in Kolkata, which strengthened the relationship even more. This centre is intended to strengthen the semiconductor supply chain, which is critical for both the Indian and US automotive markets, as evidenced by Ford Motor Company's pledge to use its Chennai plant for export.

Along with semiconductor production, Modi and Biden addressed strengthening cooperation in 5G rollout and next-generation telecommunications. The US Agency for International Development intends to contribute USD 7 million to extend the Asia Open RAN Academy, which focusses on workforce training programs in South Asia and includes collaborations with Indian institutions.