US-India fab pact targets compound semis
US President Joe Biden and Indian Prime Minister Narendra Modi have announced they will establish a semiconductor fabrication plant in India focused on advanced sensing, communication, and power electronics for national security, next generation telecommunications, and green energy applications.
This was part of the annual meeting of Quad countries, which also includes the US, Australia and Japan.
The India-US semiconductor pact – which the two leaders have described as a “watershed arrangement” – will manufacture infrared, GaN and SiC semiconductors, enabled by support from the India Semiconductor Mission as well as a strategic technology partnership between Bharat Semi, 3rdiTech, and the US Space Force.
This is India’s first such project, external with the US in which the country will provide chips to the US armed forces, allied militaries and Indian military.
Previous attempts at building homegrown semiconductor manufacturing industry in India have not seen desired results. But as the US aims to build resilience against China’s semiconductor industry, the deal gives a renewed fillip to India.
While on his three day trip to the US, Modi also met CEOs of tech companies. He urged them to explore India as a destination for manufacturing and innovation, positioning itself as an alternative to China to attract global firms looking at diversifying their supply chains.
