India and the U.S. signed a Memorandum of Understanding (MoU) for semiconductor supply chain and innovation partnership at the Commercial Dialogue held in New Delhi on the 10th of March 2023. The meetings were focused on discussing new trade and investment possibilities between the two countries. On an invitation from the Union Commerce and Industry Minister Piyush Goyal, the US Secretary of Commerce, Gina Raimondo, visited New Delhi from the 5th to the 10th of March.
The collaboration for resiliency and diversification of the semiconductor supply chain is considering the U.S. CHIPS and Science Act and India’s Semiconductor Mission. According to a statement from the Ministry of Commerce and Industry, the U.S. is India’s largest trading partner, as well as the largest destination for export. Moreover, talent and skill development, as well as the Research and Development (R&D) will be beneficial for both countries as a result of the MoU. Therefore, industry experts expect that the MoU will help India with the semiconductor mission.
In a statement released after the signing, Secretary Raimondo said that “As the Commerce Department embarks on the implementation the CHIPS and Science Act, I’m proud to announce a Memorandum of Understanding (MOU) with Minister Goyal’s Ministry of Commerce and Industry on semiconductors and electronics supply chains.”
Secretary Raimondo also added in the statement that “As both of our great nations seek to create stronger and more secure supply chains, particularly in the field of semiconductors, this MOU will establish a collaborative mechanism between our two countries on semiconductor supply chain resiliency and diversification and will aim to create economic opportunity in the U.S. and India. This is a significant step in the coordination of both our countries’ semiconductor incentive programs and will strengthen mutual priorities, including promoting commercial opportunities, R&D, and talent and skill development.”
During the visit, Secretary Raimondo also had a meeting with the Prime Minister of India Narendra Modi, in addition to bilateral meetings with Indian officials, where the shared interest of both countries was discussed. Official details of the MoU were not disclosed.