India and the US will jointly set up a new semiconductor fabrication plant from a national security perspective. Both countries have named it ‘Shakti’. This is the first fab being set up for national security. An agreement was signed by US President Joe Biden and Prime Minister Narendra Modi for the establishment of this new semiconductor plant. This semiconductor plant focuses on power electronics, green energy applications, advanced sensing, communication, next-generation telecommunications, etc. for national security.
Bharat Semiconductor, 3RDITech and US Space Force have partnered for this fab unit.
There is a possibility of setting up a new semiconductor plant in Uttar Pradesh. The main focus areas of this plant will be advanced sensing, communication, high-voltage power electronics under modern warfare.
During the meeting, the leaders of the two countries also appreciated the joint efforts to facilitate a strong, secure and sustainable semiconductor supply chain, including the construction of the GF Kolkata Power Center by GlobalFoundries (GF) in Kolkata. This will serve to advance mutually beneficial relations in research and development in the field of chip manufacturing.
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GlobalFoundries (GF) is exploring possibilities of partnership with India. If GF’s long-term cross-border manufacturing and technology partnership with India is established, it will increase the possibility of creating high-quality jobs in both countries.
Both countries welcome all such initiatives, which are being taken by the industry to build a safe, secure and robust supply chain for the US, Indian and international automotive markets. This also includes the submission of a Letter of Intent (LOI) by Ford Motor Company to use its Chennai plant for exports from India to global markets.
The semiconductor sector is being given special attention by the Government of India. Currently, five semiconductor plants are being built in India with an investment of more than Rs 1.5 lakh crore.
