A Memorandum of Understanding (MoU) on semiconductor supply chain and innovation partnership was signed by India and the US on Friday, according to the commerce ministry.
A Memorandum of Understanding (MoU) on semiconductor supply chain and innovation partnership was signed by India and the US on Friday, according to the commerce ministry.
The US secretary of commerce, Gina Raimondo, visited Delhi from March 7 to March 10 at the invitation of Piyush Goyal, minister of commerce and industry. The India-US Commercial Dialogue was relaunched during this visit to talk about cooperation for opening up new trade and investment opportunities between the two nations, it said.
A memorandum of understanding on creating a semiconductor supply chain and innovation partnership within the framework of the India-US Commercial Dialogue was signed between India and the US during the dialogue, according to the statement.
In light of the US CHIPS and Science Act and India’s Semiconductor Mission, the MoU aims to create a collaborative mechanism between the two governments on supply chain resilience and diversification for semiconductors.
Through discussions on various aspects of the semiconductor value chain, it aims to take advantage of the complementary strengths of both countries and facilitate commercial opportunities and the development of semiconductor innovation ecosystems.
Additionally, it added, the MoU envisions mutually advantageous R&D, talent, and skill development. In recent months, Foxconn and other major global chipmakers have committed to investing in India and making a number of developments there.
Last week, Hon Hai Precision Industry (Foxconn) promised to work on the memorandum of understanding (MoU) it signed with the two state governments and stated that it will be in close contact with them to advance its electronic manufacturing projects in Karnataka and Telangana.
Foxconn chairman Young Liu pledged to “ensure the successful grounding of ‘Project Elephant’ in Bengaluru” in letters to the chief ministers of Telangana and Karnataka, respectively. He also reaffirmed Foxconn’s commitment to establishing a manufacturing facility in Kongara Kalan, Telangana.
The two letters aimed to put any misunderstandings to rest following the company’s statement on Saturday that seemed to imply that the agreement from last week was not “definitive” in nature. In his letter to Bommai, Liu stated, “I am confident that this project will lay a strong foundation for our other multiple plans, spanning mechanical/precision machinery, electric vehicles, IC design and semiconductor segments, to consider your state as a potential investment destination.
In another letter to Rao, he stated that Foxconn was committed to establishing a manufacturing facility in Kongara Kalan.