'Watershed arrangement': India, US ink semiconductor fabrication plant deal for national security

hailed the India-US semiconductor fabrication partnership as a "watershed arrangement".

India will set up its first national security semiconductor fabrication plant, aimed at producing chips for military hardware and critical telecommunications and electronics, under a transformative collaboration with the United States. This ambitious joint project was announced following talks between Prime Minister Narendra Modi and US President Joe Biden in Wilmington on September 22.

Both leaders hailed the India-US semiconductor fabrication partnership as a "watershed arrangement," as detailed in a joint fact sheet released after their discussions. The initiative will be supported by the India Semiconductor Mission and will involve a strategic technology partnership among Bharat Semi, 3rdiTech, and the US Space Force.

The new facility, dubbed 'Shakti,' will focus on three crucial areas for modern warfare: advanced sensing, advanced communications, and high-voltage power electronics. It is set to be one of the world’s first multi-material fabrication plants dedicated to national security.

Foreign Secretary Vikram Misri described the initiative as "an enormously encouraging development," noting that it involves national security considerations on both sides. He highlighted the project's significance, stating that it will manufacture infrared, gallium nitride, and silicon carbide semiconductors, supported by the Indian Semiconductor Mission and the Strategic Technology Partnership.

This collaboration marks a historic moment in the India-U.S. relationship, likening its significance to the civil nuclear deal. Currently, India's semiconductor import bill for national security amounts to approximately $1 billion annually.

The joint fact sheet also mentioned ongoing efforts to create resilient and sustainable semiconductor supply chains, including GlobalFoundries' establishment of the GF Kolkata Power Centre. Modi and Biden praised the collective actions taken to enhance research and development linkages in chip manufacturing.

Additionally, the leaders welcomed advancements in cooperation around 5G deployment and next-generation telecommunications, highlighting U.S. Agency for International Development's plans to invest $7 million to expand the Asia Open RAN Academy, which aims to grow workforce training initiatives globally, including in South Asia and India.

(With inputs from agencies)