Narendra Modi with Joe Biden
US President Joe Biden underlined the US’ commitment to strengthen the semiconductor supply chain on Thursday, emphasizing cooperation efforts with major nations such as India.
President Biden also emphasized the necessity of collaboration with India, Japan, the Republic of Korea, and Singapore in order to promote the important semiconductor industry.
“When I traveled to Vietnam. As I mentioned earlier, to mark a historic new phase in our partnership of our countries, we committed to work together to strengthen the semiconductor supply chain with India, Japan, the Republic of Korea, and Singapore. We have launched new initiatives to shape the technologies and standards that will transform the future”, Biden said at the APEC CEO Summit.
The President emphasized the start of new initiatives targeted at developing technologies and standards that would accelerate semiconductor transition. The move indicates a shared commitment to collaboratively addressing the challenges of the growing technological landscape and promoting innovation.
President Biden especially emphasized India as a key player in this global movement. The enhanced relationship between the United States and India in the semiconductor arena not only represents a mutual commitment to scientific growth but also highlights India’s strategic relevance as a significant player in the global technology scene.
After a three-year hiatus, India and the United States signed a Memorandum of Understanding (MoU) on the semiconductor supply chain and innovation partnership during the India-USA Commercial Dialogue, which was re-launched with a strategic outlook focused on supply chain resiliency and diversification, as well as new emerging areas.
Union Commerce and Industry Minister Piyush Goyal and US Secretary of Commerce Gina M Raimondo inked the agreement on March 10 in New Delhi during a dialogue.
According to a White House Factsheet, the relationship is a technology partnership for the future.
“Micron Technology, Inc. will invest more than USD 800 million in a new USD 2.75 billion semiconductor assembly and test facility in India, with support from the India Semiconductor Mission. Applied Materials has announced that it will establish a Semiconductor Centre for Commercialisation and Innovation in India to further diversify our nations’ semiconductor supply chain”, it said.
The MoU between India and the United States aims to establish a collaboration framework between the two governments on semiconductor supply chain resiliency and diversification in light of the United States’ CHIPS and Science Act and India’s semiconductor Mission.
Through conversations on many parts of the semiconductor value chain, it intends to harness both countries’ complementary strengths and encourage economic prospects and the development of semiconductor innovation ecosystems. The Memorandum of Understanding envisions mutually beneficial research and development, as well as talent and skill development.
According to a statement from the Ministry of Commerce and Industry, India is the US’s ninth-largest trading partner, whereas the US is India’s largest trading partner and largest export destination.
During the calendar year 2022 (CY2022), bilateral trade in products exceeded USD 131 billion, more than tripling since 2014 (in 8 years), while total trade in goods and services is predicted to exceed USD 180 billion.
According to the ministry statement, the United States is also the third largest source of foreign direct investment (FDI) for India, and it is one of India’s top five investment destinations. It further stated that the US Commerce Secretary’s visit will significantly help to strengthen trade and commercial connections between the two countries.
Notably, leaders from the Asia-Pacific Economic Cooperation Forum’s 21 members are convening in San Francisco for the 30th APEC Leadership Summit, which is being hosted by the United States and chaired by President Biden.
APEC nations account for 62% of global GDP and nearly half of world commerce. Australia, Brunei, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, Taiwan, Hong Kong, China, Mexico, Papua New Guinea, Chile, Peru, Russia, and Vietnam are its members. APEC does not include India, a large economy.
President Biden had invited Prime Minister Narendra Modi to the APEC Leadership Summit this year. Piyush Goyal, India’s Commerce and Industry Minister, is in attendance.
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