The US and India have agreed to collaborate on establishing a semiconductor fabrication facility in India, as part of an ongoing effort to strengthen the country’s manufacturing sector. The plant will focus on producing infrared, gallium nitride, and silicon-carbide semiconductors. This development follows a meeting between US President Joe Biden and Indian Prime Minister Narendra Modi in Delaware, according to a White House statement.
The semiconductor facility will be supported by the India Semiconductor Mission and a strategic partnership between Bharat Semi, US-based 3rdiTech Inc., and the US Space Force. The initiative is seen as part of India’s broader goal to expand its semiconductor and technology manufacturing capabilities, in an effort to position itself as an alternative manufacturing hub in Asia.
Prime Minister Modi said in a post on X (formerly Twitter), “Had a fruitful roundtable with tech CEOs in New York, discussing aspects relating to technology, innovation and more. Also highlighted the strides made by India in this field. I am glad to see immense optimism towards India.”
Earlier this month, Indian technology minister Ashwini Vaishnaw highlighted the country’s plans to develop a complete semiconductor value chain. India aims to increase its electronics sector to $500 billion by the end of the decade.
In addition to the semiconductor initiative, the two countries also announced plans to invest $1 billion through the International Bank for Reconstruction and Development to support the development of India’s domestic clean energy supply chain.
Prime Minister Modi’s visit to the US includes participation in the annual Quad summit, as well as meetings with leaders from the United Nations and American technology executives. Among those he met with on Sunday were Sundar Pichai of Alphabet Inc., Jensen Huang of Nvidia Corp., and David Ricks of Eli Lilly & Co.