India and the United States sign an agreement on the semiconductor supply chain, with an emphasis on R&D and workforce development.

On Friday, India and the United States signed an initial agreement to increase private-sector collaboration in the semiconductor industry, According to which the two countries would enable business possibilities and establish an ecosystem in order to lessen their reliance on China and Taiwan.

During the Commercial Dialogue here, US Secretary of Commerce Gina Raimondo and Commerce and Industry Minister Piyush Goyal signed a Memorandum of Understanding (MoU) on establishing a semiconductor supply chain and innovation partnership under the framework of the India-US Commercial Dialogue.

Ms. Raimondo is accompanied by ten American CEOs,  joined on Friday by Indian business executives to assist write industry-specific suggestions to benefit both parties. “Boeing and Air India announced an order for 220 aircraft just a few weeks ago, which is a historic deal that reflects the strength of our economic relationship and will support a tremendous number of jobs in the United States,” said Ms. Raimondo, who met with External Affairs Minister S. Jaishankar on Thursday. She stated that the two countries agreed to establish the India-US Strategic Trade Dialogue. Mr. Jaishankar stated that he discussed “resilient and trustworthy supply chains, as well as trust and openness in the digital sphere” with Ms. Raimondo.

Ms. Raimondo joined Commerce and Industry Minister Piyush Goyal for the India-US Business Dialogue on Friday, followed by the US-India CEOS Conference. “I am thrilled to say that ten U.S. CEOs of leading U.S. companies traveled with me for the Forum and are here in person, and their role working together with their Indian CEO counterparts is to develop recommendations for us on how the allied leaders can expand commercial ties and create more economic opportunities in both of our countries,” said U.S. Commerce Secretary.

“We have already begun action as against that MoU (by) tasking both Indian and the American semiconductor industries to prepare an assessment of… gaps and lack of resiliency in the supply chain and that will guide our work,” said Ms Raimondo.

The MoU agreed upon by the two countries aims to develop a collaboration mechanism for the robustness and diversity of the semiconductor supply chain in light of the US’ CHIPS and Science Act and India’s Semiconductor Mission. While additional information on the Agreement is required, industry insiders believe the move will benefit India’s semiconductor mission.

Early this year, the United States and India strengthened their strategic alliance under iCET by introducing measures to deepen their technology collaboration. The US-India Business Council hosted the first inaugural meeting under Critical and Emerging Technology (iCET) with the US Secretary of Commerce, US National Security Advisor Jake Sullivan, and Indian National Security Advisor Ajit Doval, as well as other senior US and Indian officials, to elevate and expand strategic technology partnerships and defense industrial cooperation between the gov’t, businesses, and academic institutions of the United States of America and India.

With the cooperation of the Government of India Semiconductor Mission, the US Semiconductor Industry Association (SIA) and the India Electronics Semiconductor Association (IESA) will organize a task force to develop a “readiness assessment” to identify near-term industry prospects. They will also make it easier to create long-term strategic complementary semiconductor ecosystems. This task force will provide suggestions to the US Department of Commerce and the India Semiconductor Mission on global semiconductor value chain possibilities and obstacles. The task group will also explore and facilitate possibilities for workforce development, R&D, innovative packaging, and exchange that benefit both countries.