India and the US have signed a pact on establishing semiconductor supply chain and innovation partnership seeking to put in place a collaborative mechanism on semiconductor supply chain resiliency and diversification in view of the US’s CHIPS and Science Act and India’s Semiconductor Mission, per a government statement.

“A memorandum of understanding (MoU) on establishing semiconductor supply chain and innovation partnership under the framework of India–US Commercial Dialogue was signed between the two countries following the Commercial Dialogue 2023 held in New Delhi today,” the statement issued by the Commerce & Industry Ministry on Friday noted.

The India-US Commercial Dialogue was re-launched on Friday by Commerce & Industry Minister Piyush Goyal and visiting US Commerce Secretary Gina Raimondo to discuss cooperation for unlocking new trade and investment opportunities between the two countries.

“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 semiconductor value chain. The MoU envisages mutually beneficial R&D, talent and skill development,” the release said.

Commenting on the MoU at a telephonic press briefing on Thursday, Raimondo said it was a huge opportunity to share information, be transparent, coordinate implementation, together map the supply chain, come up with alignment around assessments of demand for semiconductors and therefore how much supply is needed. 

“We basically feel that we can have a greater benefit for both of our countries if we collaborate in the implementation of our CHIPS program,” she said.