US-INDIA PARTNERSHIP : INTERNATIONAL
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NEWS :
After Singapore, US ties up with India to boost semiconductor sector
WHAT’S IN THE NEWS ?
This
comes days after India signed a semiconductor ecosystem partnership with
Singapore during Modi’s visit last week.
US-India Semiconductor Partnership:
- Objective: Explore semiconductor supply
chain opportunities.
- Assessment:
India’s semiconductor ecosystem, regulatory framework, workforce, and
infrastructure needs.
Partnership:
US
Department of State partners with India Semiconductor Mission under the
International Technology Security and
Innovation (ITSI) Fund, created by the CHIPS Act of
2022.
CHIPS and Science Act (2022):
- Purpose: Bring semiconductor
manufacturing back to the US, reversing offshoring trends.
Semiconductors:
- Definition: Materials with electrical
properties between conductors and insulators, used in integrated circuits
(ICs) or microchips.
- Key Components:
Transistors, solar cells, LEDs.
- Material:
Made from silicon or germanium, modified through doping for conductivity
control.
India's Semiconductor Industry:
- Market Value: US$ 26.3 billion
(2022), projected to grow to US$ 271.9 billion by 2032.
- Exports/Imports: Includes diodes,
transistors, LEDs, and piezo-electric crystals.
Factors Favoring India:
- Skilled Workforce: India leads in
STEM graduates.
- Cost Advantage: Lower labor costs,
efficient supply chain.
- Supply Chain Diversification: India is
becoming a hub for semiconductor assembly and testing.
- Policy Support: Government
initiatives position India as an alternative to China in the global supply
chain.
India Semiconductor Mission (ISM):
- Objective: Develop India’s semiconductor
and display ecosystem to become a global player.
- Incentives:
50% fiscal support for projects under:
- Semiconductor Fab Scheme,
- Display Fab Scheme,
- Compound Semiconductor Scheme.
Engagement
with the United States:
- Following the 1998 nuclear tests, the
U.S. recalibrated its approach towards India, recognizing it as a strategic
partner rather than an adversary.
- Key
milestones in India-U.S. defence cooperation include:
- 2000:
U.S. President Bill Clinton’s visit to India, setting the foundation for
a strategic partnership.
- 2008:
Indo-U.S. Civil Nuclear Agreement, which was a turning point in bilateral
relations.
- 2012:
Launch of the Defense Technology and Trade Initiative (DTTI) to promote
joint defence projects.
- 2014:
Endorsement of the India-U.S. Defense Cooperation Declaration.
- 2015:
Signing of a 10-year Defense Framework Agreement.
- 2016:
India was designated a ‘Major Defence Partner’ by the U.S., and the Logistics Exchange Memorandum of
Agreement (LEMOA) was signed, allowing for logistics cooperation.
- 2018:
The first 2+2 Ministerial Dialogue was held, and the Communications Compatibility and Security Agreement (COMCASA) was
signed to enhance communications interoperability.
- 2020:
Signing of the Basic Exchange and
Cooperation Agreement (BECA) for geospatial information sharing.
- 2023:
The Initiative on Critical and
Emerging Technologies (iCET) was signed to foster cooperation in
high-tech areas like AI and semiconductors.
·
2024 Developments: Approval for three
semiconductor plants (2 in Gujarat, 1 in Assam).
Conclusion:
- Global Dominance: Taiwan controls
over 60% of global semiconductor supply and 90% of advanced chips.
- Strategic Importance:
Semiconductors are essential in sectors from defense to electronics, and
US-India partnerships have geo-strategic and geo-economic significance.
Source : https://indianexpress.com/article/india/after-singapore-us-ties-up-with-india-to-boost-semiconductor-sector-9559104/