New Delhi: India and the US on Friday signed an initial pact to strengthen cooperation in the semiconductor sector to facilitate commercial opportunities and development of innovation ecosystems in the segment as both sides concluded their commercial dialogue.
The Memorandum of Understanding (MoU) has been signed for establishing semiconductor supply chain and innovation partnership under the framework of India-US Commercial Dialogue, which was re-launched after a gap of three years.
During the meeting here, Commerce and Industry Minister Piyush Goyal and US Secretary of Commerce Gina Raimondo discussed ways to promote trade and investment relationships.
The MoU seeks to establish a collaborative mechanism between the two governments on semiconductor supply chain resiliency and diversification in view of the US's CHIPS and Science Act, and India's Semiconductor Mission.
The CHIPS and Science Act was signed by President Joe Biden in 2022 to boost funding for the American semiconductor industry.
The MoU aims to leverage complementary strengths of both countries and facilitate commercial opportunities and development of semiconductor innovation ecosystems through discussions on various aspects of the semiconductor value chain.
In addition, the MoU envisages mutually beneficial R&D, talent and skill development.
Addressing a joint media briefing, Goyal said the MoU would help in expanding mutual cooperation and enhancing resilient supply chains.
Raimondo said that India's desire to expand its advance manufacturing is totally aligned with the US desire and goal to make their supply chain more resilient.
With the MoU, she said the US would like to see India achieve its aspirations to play a larger role in the electronic supply chain.
"We have already begun action as against that MoU (by) tasking both Indian and the American semiconductor industries to prepare an assessment of... gaps and lack of resiliency in the supply chain and that will guide our work," she said.
She also said there are also opportunities in the entire electronic supply chain for cooperation between the two countries.
At the end of the commercial dialogue, both sides announced the launch of a new Working Group on Talent, Innovation and Inclusive Growth.
The move will further the cooperation on startups, SMEs, skill development and entrepreneurship, including in digital and emergent technologies, Goyal said.
Further, Goyal said the Travel and Tourism working group has been re-launched to to address the new challenges and opportunities to create a stronger travel and tourism sector.
Besides, both the countries launched standards and conformance cooperation programme (Phase III) to be carried out in partnership between ANSI (American National Standard Institute) from the US side and BIS (Bureau of Indian Standards) from the Indian side in furtherance of standards cooperation.
Separately, the US side would send a senior government official-led clean energy and environmental technology business development mission to India in 2024. PTI