Under a transformative collaboration with the US, India will get a national security semiconductor fabrication plant that will produce chips for use in military hardware and next-generation telecommunications.

The India-US joint project was announced following talks between Prime Minister Narendra Modi and US President Joe Biden in Wilmington on Saturday.

A joint fact sheet on Modi-Biden talks said the two leaders “hailed” the semiconductor project as a “watershed arrangement”.
It will be the first ever India-US semiconductor fabrication partnership.

It is the first time ever the US military has agreed to do a partnership for these highly-value technologies with India and it is a watershed moment as it is as significant as the civil nuclear deal, people familiar with the matter said.

The fact sheet said Modi and Biden praised combined efforts to facilitate resilient, secure, and sustainable semiconductor supply chains including through GlobalFoundries’ (GF) creation of the GF Kolkata Power Center in Kolkata.

It said the project will enhance mutually beneficial linkages in research and development in chip manufacturing.

This includes the US Agency for International Development’s plans to expand the Asia Open RAN Academy with an initial USD 7 million investment to grow this workforce training initiative worldwide, including in South Asia with Indian institutions.