India to establish first national security semiconductor plant in partnership with US
Under a transformative collaboration with the United States, India is set to launch its inaugural national security semiconductor fabrication plant, designed to produce chips for military applications and critical telecommunications.
This landmark project was unveiled following discussions between Prime Minister Narendra Modi and US President Joe Biden in Wilmington on Saturday.
The leaders described the semiconductor fabrication partnership as a “watershed arrangement,” as detailed in a joint fact sheet. This initiative will be supported by the India Semiconductor Mission and involves a strategic technology partnership between Bharat Semi, 3rdiTech, and the US Space Force.
Sources indicate that this facility will not only mark India’s first such plant but will also be among the world’s pioneering multi-material fabs focused on national security. It represents a significant step, comparable to the civil nuclear agreement, as it is the first time the US military has engaged in a partnership for high-value technologies with India.
The fact sheet noted, “President Biden and Prime Minister Modi hailed a watershed arrangement to establish a new semiconductor fabrication plant focused on advanced sensing, communication, and power electronics for national security, next-generation telecommunications, and green energy applications”, according to a report by Reuters.
Named ‘Shakti’, the fab will concentrate on producing infrared, gallium nitride, and silicon carbide semiconductors. Foreign Secretary Vikram Misri described the initiative as “an enormously encouraging development,” highlighting the involvement of national security elements from both nations, as reported by Reuters.
He explained that the project aims to harness India’s growing design and manufacturing capabilities in the semiconductor sector.
As noted in estimates, India’s annual import bill for these semiconductors related to national security stands at approximately USD one billion.
The fact sheet also mentioned that PM Modi and President Biden acknowledged efforts to build resilient and secure semiconductor supply chains, which includes GlobalFoundries’ establishment of the GF Kolkata Power Centre.
The leaders further praised ongoing cooperation in 5G deployment and next-generation telecommunications, referencing the US Agency for International Development’s plans to invest USD 7 million to expand the Asia Open RAN Academy, aimed at workforce training initiatives in South Asia, including partnerships with Indian institutions.
(with inputs from Reuters)
