Groundbreaking India-US Semiconductor Fabrication Partnership Established

In a groundbreaking partnership, India and the United States have agreed to establish a semiconductor fabrication plant, marking a historic moment in technological collaboration between the two nations. The initiative was lauded by both Prime Minister Narendra Modi and US President Joe Biden as a significant leap in strengthening national security and advancing technological infrastructure.

This semiconductor fabrication plant, or “fab,” is the first of its kind to be developed as part of a strategic partnership between Indian companies Bharat Semi, 3rdiTech, and the US Space Force. The plant will specialize in producing advanced infrared, gallium nitride, and silicon carbide semiconductors, technologies critical for modern national defense, telecommunications, and green energy applications.

First India-US Semiconductor Fab for National Security

For the first time, the US military has agreed to a technology partnership with India for highly sensitive semiconductor technologies, making this cooperation as momentous as the US-India civil nuclear deal. The fab, named “Shakti,” will become a cornerstone of India’s semiconductor ambitions, addressing three critical areas: advanced sensing, communication, and high-voltage power electronics.

These semiconductors, known as compound semiconductors, are crucial not only for national defense but also for commercial sectors such as railways, telecommunications infrastructure, data centers, and renewable energy industries.

Semiconductor Vision: From Importer to Manufacturer

This partnership is a key milestone in Prime Minister Modi’s vision to transform India from a “chip-taker” to a “chip-maker.” India currently imports nearly $1 billion worth of semiconductors for national security each year, but the establishment of this fab will position India as a global player in semiconductor manufacturing. The fab is set to become a national asset, helping India become a net technology provider and security provider in the region.

Strategic Tech Partnership and Global Impact

This collaboration is part of broader India-US efforts to bolster critical technologies, following multiple agreements such as the Initiative on Critical and Emerging Technologies (iCET) and other memoranda of understanding. The fab marks the first true India-US semiconductor fabrication project, surpassing earlier ventures focused on testing and assembly.

Bharat Semi and 3rdiTech are emerging as leaders in this effort, achieving a significant success under India’s Atmanirbhar Bharat (self-reliant India) initiative. This partnership positions India among a select group of nations capable of manufacturing advanced semiconductors onshore, marking a turning point in India’s technological independence and its growing strategic ties with the United States.

This fab, particularly as a first within the Quad, is expected to be a critical contributor to global semiconductor supply chains, addressing national security needs and the growing demand for next-generation technologies.

As history unfolds, this collaboration will likely be seen as a watershed moment in India-US relations, breaking barriers in tech diplomacy and positioning India as a major player in global semiconductor production.

Sources By Agencies

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