US and India Will Sign an Agreement to Boost Chips Collaboration
The US and India Plan to Boost Chips Collaboration, Biden’s Commerce Chief Raimondo Says, US wants India to play a larger supply-chain role. “We would like to see India achieve its aspirations to play a larger role” in the electronics supply chain, Raimondo told reporters on a week-long trip that includes meetings with Indian public- and private-sector leaders in New Delhi, as well as conversations between American and Indian corporate executives.
Against the background of the confrontation between China and the United States, the possibility of establishing production bases outside China has increased. Geopolitical changes such as the confrontation between China and the United States have also become driving forces, and India is making active efforts to take root in new giant industries.
The Indian government introduced a support policy of 760 billion rupees for semiconductor and liquid crystal production in December 2021, and decided to expand the subsidy targets. India hopes to ensure that there will be no sudden shortage of chips needed in India in the next 3 to 5 years, and avoid the sharp rise in chip prices in various fields of electronic products, automobiles, and high-tech products caused by the shortage.
In February 2022, Hon Hai Group announced the signing of a memorandum of cooperation with Vedanta, intending to jointly invest in the establishment of a joint venture company to manufacture semiconductors in India. In October of the same year, Vedanta stated that Hon Hai and Vedanta jointly planned to build a 28nm 12-inch wafer fab, which is expected to be put into operation in 2025. The initial output will be 40,000 wafers per month, and full-speed production will start the next year.
In May 2022, ISMC, an international semiconductor consortium, stated that it would invest US$3 billion in establishing a fab in India, initially planning to produce 65nm logic chips. It is reported that ISMC is a joint venture between Next Orbit Venture Capital Fund and chip manufacturer High Tower Semiconductor, which has been acquired by Intel. Therefore, the above-mentioned fab can also be regarded as Intel's layout for Indian wafer manufacturing.
In July 2022, Singaporean investment group IGSS Ventures stated that it will invest US$3.25 billion to build a semiconductor high-tech park in Tamil Nadu, India, including a fab.
Nevertheless, Raimondo, who’s traveling with executives from 10 leading US companies, sees “unbridled enthusiasm and optimism for how we can generate jobs in both of our countries and both share the benefits of a more resilient supply chain,” she said.
For India, it is a new chance to nurture new centers of economic growth, improving India's position in the global industrial chain, India can replace China as US 'trusted supply chain partner.
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