admin The United States has announced plans to invest in expanding India’s semiconductor industry through a new partnership aimed at reshaping the global technology supply chain. This initiative, led by the U.S. State Department, is part of the broader International Technology Security and Innovation (ITSI) Fund. The program, launched last year, aims to strengthen the global semiconductor ecosystem, benefiting both countries and the wider world.
According to Robert Garverick, U.S. Deputy Assistant Secretary of State for Trade Policy and Negotiations, the partnership highlights the potential for India’s semiconductor sector to grow and bring benefits globally. India now joins seven other nations, including Costa Rica, Indonesia, and Vietnam, as participants in this collaborative effort to bolster semiconductor manufacturing capabilities. The U.S. plans to focus on supporting semiconductor assembly, testing, and packaging in these countries.
Focus on Workforce Development and Skills Training
While specific details of the U.S. investment in India are still under review by the Organization for Economic Cooperation and Development, early indications suggest that workforce development will be a priority. A senior U.S. official mentioned the need for more trained technicians and engineers to meet global semiconductor demands, adding that India is seen as an ideal partner for this effort. The official also pointed out that regulatory reforms could be introduced to streamline business operations for the sector in India.
The ITSI initiative forms part of the CHIPS and Science Act of 2022, which allocated $53 billion to revitalize semiconductor manufacturing in the U.S. Although the act primarily focuses on domestic production, $500 million has been earmarked over five years to develop semiconductor industries in partner nations.
India’s Role in the Global Semiconductor Race
As semiconductors become critical to various sectors, from consumer electronics to defense, the U.S. sees strategic collaborations with countries like India as essential for diversifying global supply chains. With India’s own semiconductor mission already providing substantial government funding, the U.S. partnership is expected to further enhance India’s position in the global chip industry. These efforts aim to reduce global dependency on regions like Taiwan, currently the world’s largest supplier of advanced semiconductors.
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