India and the United States have signed an agreement to establish a semiconductor fabrication plant aimed at producing chips for applications in national security, next-generation telecommunications, and green energy, as detailed in the Indo-US joint fact-sheet. This partnership, celebrated by President Joe Biden and Prime Minister Narendra Modi, represents a groundbreaking milestone, being the first instance where the US military has collaborated on advanced technology with India.
The fabrication facility, named “Shakti” (meaning power), will focus on advanced sensing, communication, and power electronics. It will receive support from the India Semiconductor Mission and a strategic technology alliance involving Bharat Semi, 3rdiTech, and the US Space Force. The goal is to manufacture infrared, gallium nitride, and silicon carbide semiconductors.
This development is likened to the Indo-US civil nuclear agreement, as it marks a significant shift in tech diplomacy, allowing India to join an elite group of nations capable of domestic semiconductor manufacturing. Currently, India imports approximately USD 1 billion annually in semiconductors crucial for national security.
The new arrangement is seen as a transformative step in India-US relations, enhancing cooperation in critical technologies, particularly in semiconductors, which have extensive applications in commercial sectors like railways, telecommunications, and green energy initiatives. This collaboration is expected to establish India as a reliable supply chain partner in essential national security technologies.
