India, US ink MoU on semiconductor supply chain, innovation partnership

India and the US on Friday signed a memorandum of understanding (MoU) on semiconductor supply chain and innovation partnership during the Commercial Dialogue 2023, the commerce ministry said.

On the invitation of commerce and industry minister Piyush Goyal, the US secretary of commerce Gina Raimondo visited Delhi between March 7 and 10.

During this visit, the India-US Commercial Dialogue was re-launched to discuss cooperation for unlocking new trade and investment opportunities between the two countries, it said.


"During the Dialogue, a MoU on establishing semiconductor supply chain and innovation partnership under the framework of India-US Commercial Dialogue was signed between India and US," it said.

The MoU seeks to 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.

It aims to leverage 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.

In addition, the MoU envisages mutually beneficial R&D, talent and skill development, it added.

India's semiconductor play

In recent months, India has become host to a number of developments and investment commitments from global chipmakers, including the likes of Foxconn.

Last week, Hon Hai Precision Industry (Foxconn) said it will be in close contact with Karnataka and Telangana to take its electronic manufacturing projects in the two states forward, pledging its commitment to work on the memorandum of understanding (MoU) it signed with the two state governments last week.

In separate letters to Karnataka chief minister Basavaraj Bommai and Telangana chief minister K Chandrashekar Rao, Foxconn chairman Young Liu said he will "ensure successful grounding of the 'Project Elephant' in Bengaluru" while underscoring the its commitment to setting up a manufacturing facility in Kongara Kalan in Telangana.

The two letters sought to clear any air of confusion after the company's statement on Saturday suggested that last week's agreement were not "definitive" in nature.

"I am confident this project will lay a strong foundation for our other multiple plans, spanning mechanical/precision machinery, electric vehicle, IC Design & semiconductor segments to consider your state as a potential investment destination," Liu said in his letter to Bommai.

In another letter to Rao, he said Foxconn was committed to setting up a manufacturing facility in Kongara Kalan.