Prime Minister Modi’s US visit may boost semiconductor supply chain pact

Prime Minister Narendra Modi’s visit to the US this week is likely to give a boost to the Indo-US technology partnership, especially on the establishment of a new semiconductor supply chain where major announcements are expected.

Meetings have also been scheduled with the CEOs of top 20 US companies, such as Mastercard, Accenture, Coca-Cola Co, Adobe Systems and Visa.

US national security advisor Jack Sullivan, who was in India on a two-day trip last week, fuelled expectations of a breakthrough on bilateral collaboration in the semiconductor sector when he said the efforts could see “substantial results” this week.

Partnership in the semiconductor sector is among the main goals of the US-India initiative on Critical and Emerging Technology (iCET).

MoU inked in March

The initiative envisions closer cooperation between private industry and scientific institutions in the areas of artificial intelligence and quantum computing, advanced materials, defence, semiconductors, next-generation telecommunications, biotech and space.

In March, India and the US signed an initial pact on increasing private sector cooperation in the area of semiconductors under which the two countries would facilitate business opportunities and develop an ecosystem.

The memorandum of understanding seeks to establish a collaborative mechanism between the two governments on semiconductor supply chain resiliency and diversification in view of US’ CHIPS and Science Act and India’s Semiconductor Mission.

Discussions with business leaders during the PM’s June 21-24 visit are likely to focus on exploring opportunities for collaboration, attracting investments and expanding business ties between India and the US. The meetings will underscore the importance of India as a critical market for American businesses, according to a person familiar with Indo-US business ties.