India and the United States will establish a collaborative mechanism between the two governments on semiconductor supply chain resiliency and diversification in view of the US's CHIPS and Science Act and India's Semiconductor Mission.
The proposal is to leverage the complementary strengths of both countries and facilitate commercial opportunities and development of semiconductor innovation ecosystems through discussions on various aspects of the semiconductor value chain.
A Memorandum of Understanding (MoU) on establishing semiconductor supply chain and innovation partnership under the framework of India – US Commercial Dialogue was signed on behalf of the two countries by Piyush Goyal, Union Minister of Commerce and Industry and the US Secretary of Commerce, Gina Raimondo. The MoU, which envisages mutually beneficial R&D, talent and skill development in the area of semiconductors, was signed during the fifth Ministerial level meeting of the India-US Commercial Dialogue in New Delhi on March 10.
The Commercial Dialogue is part of ongoing efforts to strengthen the U.S.-India Comprehensive Global Strategic Partnership, develop inclusive and fairtrade and investment policies, and leverage the interests of the private sector in pursuing new market opportunities that advance prosperity in both countries.
In a joint statement issued after the meeting, both the parties welcomed the recently launched U.S.-India initiative on Critical and Emerging Technology (iCET), which elevates and expands the strategic technology partnership between the governments, businesses, and academic institutions of our two countries. The Minister and the Secretary expressed their intent to support iCET's vision to build a trusted technology value chain partnership between the countries and make possible greater cooperation in critical and emerging technologies, co-development and co-production, and connectivity across the innovation ecosystems of both countries.
The joint statement said that India and the US underscored the importance of the Commercial Dialogue in sustaining momentum on shared economic priorities and confirmed their intention to convene before the end of 2023 a mid-year review led by senior government officials from both sides. "The mid-year review will allow each side to carry forward the below priorities identified under the Commercial Dialogue, implementing a roadmap based on the Minister's and the Secretary's economic vision and ensuring robust private sector engagement to inform ongoing efforts," the statement said.