Semiconductors: President Biden, and PM Modi announce plans for a new plant in India
Virendra Pandit
New Delhi: The USA and India will work together on setting up a semiconductor fabrication plant in the South Asian nation, giving a boost to visiting Prime Minister Narendra Modi’s efforts to bolster chip manufacturing in the country.
The proposed plant will make infrared, gallium nitride, and silicon-carbide semiconductors, according to a White House statement after a bilateral meeting between the two leaders in Delaware, USA, on Saturday, the media reported.
The setting up of the new facility will be enabled by support from the ongoing India Semiconductor Mission as well as a “strategic technology partnership between Bharat Semi, 3rdiTech Inc, and the US Space Force,” it added.
India’s strategic geopolitical position in Asia has provided a fresh spotlight on the South Asian nation and the opportunities it can afford in the field of technology. Since 2014, PM Modi has been trying to position India as a manufacturing alternative to China, and it has already begun to pull away some of its manufacturing from Apple Inc. and Samsung Electronics Co. to his country.
Earlier this month, Union Information Technology Minister Ashwini Vaishnaw said that India is making efforts to develop the entire chip value chain and increase its electronics sector to USD 500 billion by 2030.
The US and India also announced efforts to fund projects “catalyzing India’s domestic clean energy supply chain build-out” for about USD 1 billion through the International Bank for Reconstruction and Development (IBRD).
On Sunday, the visiting PM Modi, in a roundtable with the CEOs of over a dozen technology firms, urged them to co-develop, co-design, and co-produce in India for the world. He assured the leading US companies of India’s deep commitment to the protection of intellectual property and fostering tech innovation.
At the event organized by the Massachusetts Institute of Technology (MIT), the PM asserted that his government was committed to making India a global hub of semiconductor manufacturing and also highlighted the BIO E3 policy to develop the country into a biotech powerhouse.
“The CEOs expressed their strong interest in investing and collaborating with India. India’s growing prominence as a global technology hub, driven by its innovation-friendly policies and flourishing market opportunities, got much appreciation from the tech leaders. They also agreed that investing in startups would be a synergistic opportunity to innovate and develop newer technologies in India,” the Ministry of External Affairs (MEA) said.
Some of the CEOs who participated in the roundtable included Sundar Pichai (Google), David Ricks (Eli Lilly), Hans Vestberg (Verizon), Arvind Krishna (IBM), Noubar Afeyan (Moderna), Chris Viehbacher (Biogen), Julie Sweet (Accenture), Chris Boerner (Bristol), Shantanu Narayen (Adobe), Lisa Su (AMD) and Enrique Lores (HP).
“He (Modi) encouraged the companies to take advantage of harnessing the opportunities from India’s economic and technological growth.”
The PM highlighted that economic transformation was happening in India, particularly in electronics and information technology manufacturing, semiconductors, biotech, and green development.
On AI, Modi said that India’s policy was to promote `AI for All’, underpinned by its ethical and responsible use.
Currently, PM Modi is on a three-day visit (September 21 to 23) to the US. He has already participated in the annual Quadrilateral Security Dialogue (Quad) Summit and held bilateral meetings with the US leadership.
On Monday, he will address the United Nations General Assembly, and meet with the Indian diaspora.
The next Quad meeting is scheduled to be held in India in 2025.
