The United States and India will sign a memorandum of understanding on semiconductors as both countries discuss coordination of investment and continue dialogue around policies to spur private investment, U.S. Commerce Secretary Gina Raimondo said. The dialogue comes close on the heels of the launch of the inauguration of the initiative on Critical and Emerging Technology (iCET).
U.S. Commerce Secretary Gina Raimondo’s India Visit:
Raimondo, who is on a four-day trip to India, is accompanied by the chief executive officers of 10 U.S. companies and is scheduled to meet India’s trade minister. The two nations will map the semiconductor supply chain together and identify opportunities for joint ventures and technology partnerships, Raimondo added.
Raimondo said she and Jaishankar launched the India-US Strategic Trade Dialogue at a meeting. On the US side, the dialogue will be led by the under secretary of the Bureau of Industry and Security under the commerce department while the foreign secretary will head it on the Indian side, with the focus on export controls.
US-India Semiconductor Push:
India has been seeking to attract more big-ticket investments under a $10 billion incentive plan for chip and display production, aiming to become a key player in the global supply chain. Last year, the South Asian nation raised fiscal support for new local semiconductor facilities to cover 50% of project costs.
India has launched a production-linked incentive scheme for chips and the US recently unveiled its CHIPS and Science Act to help rebuild its manufacturing and supply chains. Both initiatives have come at a time when India and the US are working to end their dependence on China for chips.