India and the US have signed an agreement to establish a semiconductor fabrication plant.

India-US Ink Pact on Semiconductor Fabrication Plant

• It is the first project where the US Military has partnered with India on critical technology.
• India’s current annual import bill for these semiconductors is USD 1 billion, mainly for national security needs.

About Semiconductor Fabrication Plant

• A semiconductor fab (short for fabrication) is a manufacturing plant where raw silicon wafers are transformed into integrated circuits (ICs).
• The plant will manufacture infrared, gallium nitride, and silicon carbide semiconductors.

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• Key Collaborations

  • The plant, titled “Shakti” (meaning power), will be developed with support from the India Semiconductor Mission and a strategic partnership between:
    • Bharat Semi
    • 3rdiTech
    • US Space Force

• Focus Areas

• • The fab will concentrate on three key areas critical for modern warfare and commercial use:
    • Advanced Sensing
    • Advanced Communications
    • High Voltage Power Electronics
  • These technologies are also important for sectors like railways, telecom infrastructure, data centres, and green energy.

Strategic Importance of India-US Semiconductor Fabrication Project

• Elevating India’s Semiconductor Capabilities

  • First-of-its-kind project: This is a significant milestone as it’s the first-ever India-US semiconductor fabrication project.
  • Beyond testing and assembly: This project focuses on actual manufacturing which  elevates India’s semiconductor capabilities. 
  • Joining the elite club: India is now among a select group of countries capable of manufacturing advanced semiconductors domestically.

• Strengthening India’s Supply Chain

  • Reliable supply chain: The project will help India become a reliable supplier of critical national security technologies.
  • Reducing dependence: It will reduce India’s dependence on foreign sources for semiconductors, ensuring a more secure and stable supply.

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• Significance in Technology Diplomacy

• • Landmark collaboration: The agreement represents a breakthrough in tech diplomacy between India and the US.
  • Overcoming barriers: It has shattered the “glass ceiling” in high-value semiconductor manufacturing collaboration.
  • Strengthening ties: This partnership will further strengthen the technological ties between the two nations.