The US Department of State has joined forces with the India Semiconductor Mission under the Ministry of Electronics and Information Technology to explore opportunities for expanding and diversifying the global semiconductor ecosystem through the International Technology Security and Innovation (ITSI) Fund, established by the CHIPS Act of 2022. This collaboration aims to build a more resilient, secure, and sustainable global semiconductor value chain.

Speaking at the event, J Robert Garverick, US Deputy Assistant Secretary of State for Trade Policy and Negotiations, highlighted the importance of the partnership. He explained that the ITSI Fund, created by President Biden’s CHIPS Act, is intended to promote the development of secure global semiconductor supply chains and telecommunications networks. The partnership with India is a key step in advancing these goals.

The initial phase of the collaboration will include a comprehensive assessment of India’s semiconductor ecosystem, regulatory framework, and infrastructure needs. “Insights gained from this review will serve as the foundation for potential joint initiatives to strengthen this critical sector,” Garverick said, adding that cooperation between the US and India will be vital in ensuring the global semiconductor supply chain keeps pace with the ongoing digital transformation. The partnership is expected to extend to supply chain logistics as well.

Key Indian stakeholders, including state governments, educational institutions, research centres, and private companies, are expected to participate in this analysis, which will be directed by the India Semiconductor Mission (ISM).

Akash Tripathi, CEO of the ISM, expressed enthusiasm for the collaboration, announcing that India will conduct a study with the US to access the ITSI Fund. “We intend to complete the study in the next couple of months to further boost our semiconductor ecosystem,” he said. 

In August 2022, US President Joe Biden signed the CHIPS Act, a US law that allocated new funding to boost domestic manufacturing and research of semiconductors in the United States

It also established the ITSI Fund, which provides $500 million over five years to support secure telecommunications technologies, semiconductor supply chains, and other initiatives with US allies and partners.

In March 2023, a Memorandum of Understanding (MoU) on establishing a semiconductor supply chain and innovation partnership under the framework of India – US Commercial Dialogue was signed between the two countries following the Commercial Dialogue 2023. The MoU seeks to establish a collaborative mechanism between the two governments on Semiconductor Supply chain resiliency and diversification given US’s CHIPS and Science Act and India’s Semiconductor Mission.  It aims to leverage the complementary strengths of both countries and facilitate commercial opportunities and the development of semiconductor innovation ecosystems through discussions on various aspects of the semiconductor value chain. The MoU envisages mutually beneficial R&D, talent and skill development.

(With agency inputs)