After the "chip quadrilateral alliance", the United States has dragged India into the "partnership"
There is no doubt that this US-India cooperation initiative in the industrial economy, defence and other areas will deepen the strategic partnership established due to common geopolitical objectives. India will also increase the stakes in the semiconductor industry under this geopolitical relationship, after all, one side hopes to build a dominant position in the global semiconductor industry chain, and the other side hopes to reap the benefits in line with this strategy, to promote the rise of the local semiconductor industry.
Following the formation of the "Chip Quadrilateral Alliance" in April 2022, the US has begun to bring India into the fold. 21-23 June, Indian Prime Minister Narendra Modi paid a state visit to the US to explore the possibility of becoming a key strategic partner in the coming decades. The US is also seeking support for India's "rise to power". It is reported that the US and India will enhance the Strategic Technology Partnership between the two countries to strengthen cooperation in emerging technologies including space, clean energy, semiconductors, AI and artificial intelligence, especially the two sides announced the first of a series of semiconductor cooperation agreements to bring advanced technology manufacturing to India through the use of Indian subsidies.
In February 2022, the Biden Administration released the first Indo-Pacific Strategy since the US administration, which subsequently became the US security and economic approach in the Indo-Pacific region. There is no doubt that India is an important part of this strategy. Moreover, in the process of implementing this strategy, India has been "keen" to identify the industrial development opportunities that the strategy could bring to India, and has actively moved closer to the US strategy of dominating the global semiconductor industry chain as a means of gaining access to the rise of the Indian semiconductor industry.
In pursuit of the emergence of the semiconductor industry, India launched a US$10 billion industry support programme in December 2021 to develop the Indian semiconductor chip design and manufacturing industry and the display manufacturing ecosystem. In 2022, India joined the Indo-Pacific Economic Framework (IPEF), an initiative by the US and 12 other countries in the region, built around four pillars related to trade, supply chain, clean economy and fair economy (issues such as taxation and anti-corruption). "Indo-Pacific Economic Framework" (IPEF). Together, these countries are said to account for over 40% of global GDP and 28% of global trade in goods and services. This also further strengthens the economic ties and cooperation between the US and India.
In March this year, US Secretary of Commerce Gina Raimondo visited India and said that the US and India are focusing on near-term business opportunities and long-term strategic goals in the semiconductor sector to enhance cooperation on a wide range of policies and activities related to semiconductors, including supply chain diversification, reducing over-dependence on certain destinations, and ensuring greater coordination to implement their proposed plans to incentivise India's chip manufacturing sector. She even said, "It's not a one-year collaboration. We see this as a 5-20 year collaboration". During this period, the US and India also signed a "US-India Memorandum of Understanding on Semiconductors".
The visit of Indian Prime Minister Narendra Modi to the US will further strengthen technological cooperation in various fields such as semiconductors, 6G networks, quantum computing, artificial intelligence and climate technology. Among them, in terms of semiconductors, US semiconductor companies will establish a semiconductor ecosystem in India to enhance supply chain diversification.
It is reported that US semiconductor company Micron has committed to spend US$2.75 billion to build an assembly and test facility in India, which will be supported by the Indian National Semiconductor Mission (INSMEM). Applied Materials will also announce the establishment of a new centre for commercialisation and innovation of semiconductors in India. The US will help train 60,000 Indian engineers and will announce support for India to join the US-led Mineral Security Partnership to ensure India has access to the minerals it needs to produce semiconductors.
In August 2022, the US formally introduced the Chip and Science Act of 2022, which authorises the US federal government to provide $52.7 billion in subsidies to the semiconductor industry. Of this, US$39 billion will be used to subsidise expansion and new semiconductor plants, US$13.2 billion for research and development and labour development, and US$500 million related to strengthening the global industry chain.
In addition to the actual subsidies, the chip bill also has clear exclusionary provisions, with a view to promoting the "return" of chip manufacturing to the homeland through huge industry subsidies and curbing competition. In March this year, the U.S. Department of Commerce issued rules for companies to apply for subsidies, meaning that the U.S. chip bill entered the formal implementation phase.
Recently, the Information Technology and Innovation Foundation (ITIF), a U.S. think tank, released a new preliminary assessment report that India will bring great value to the semiconductor manufacturing ecosystem, and analyzed the scope for cooperation between the U.S. and India in the semiconductor industry. The report proposes that the US Chip and Science Act includes $500 million for the CHIPS International Technology Security and Innovation Fund. A significant portion of these funds should be allocated to projects of relevance to Indian interests. For example, in order to support design and foundry development, small to medium-sized joint foundries could be established to validate innovative chip designs. In addition, the report recommends that the two countries should collaborate to develop a comprehensive multinational semiconductor supply value chain map to support a strong and resilient semiconductor ecosystem.
There is no doubt that this US-India cooperation initiative in the areas of industrial economics and defence will deepen a strategic partnership built on shared geopolitical objectives. This geopolitical relationship will also allow India to increase its stakes in the semiconductor industry, as one side hopes to build a dominant position in the global semiconductor chain, while the other side hopes to reap the benefits of this strategy and promote the rise of its own semiconductor industry.
Following the formation of the "Chip Quadrilateral Alliance" in April 2022, the US has begun to bring India into the fold. 21-23 June, Indian Prime Minister Narendra Modi paid a state visit to the US to explore the possibility of becoming a key strategic partner in the coming decades. The US is also seeking support for India's "rise to power". It is reported that the US and India will enhance the Strategic Technology Partnership between the two countries to strengthen cooperation in emerging technologies including space, clean energy, semiconductors, AI and artificial intelligence, especially the two sides announced the first of a series of semiconductor cooperation agreements to bring advanced technology manufacturing to India through the use of Indian subsidies.
In February 2022, the Biden Administration released the first Indo-Pacific Strategy since the US administration, which subsequently became the US security and economic approach in the Indo-Pacific region. There is no doubt that India is an important part of this strategy. Moreover, in the process of implementing this strategy, India has been "keen" to identify the industrial development opportunities that the strategy could bring to India, and has actively moved closer to the US strategy of dominating the global semiconductor industry chain as a means of gaining access to the rise of the Indian semiconductor industry.
In pursuit of the emergence of the semiconductor industry, India launched a US$10 billion industry support programme in December 2021 to develop the Indian semiconductor chip design and manufacturing industry and the display manufacturing ecosystem. In 2022, India joined the Indo-Pacific Economic Framework (IPEF), an initiative by the US and 12 other countries in the region, built around four pillars related to trade, supply chain, clean economy and fair economy (issues such as taxation and anti-corruption). "Indo-Pacific Economic Framework" (IPEF). Together, these countries are said to account for over 40% of global GDP and 28% of global trade in goods and services. This also further strengthens the economic ties and cooperation between the US and India.
In March this year, US Secretary of Commerce Gina Raimondo visited India and said that the US and India are focusing on near-term business opportunities and long-term strategic goals in the semiconductor sector to enhance cooperation on a wide range of policies and activities related to semiconductors, including supply chain diversification, reducing over-dependence on certain destinations, and ensuring greater coordination to implement their proposed plans to incentivise India's chip manufacturing sector. She even said, "It's not a one-year collaboration. We see this as a 5-20 year collaboration". During this period, the US and India also signed a "US-India Memorandum of Understanding on Semiconductors".
The visit of Indian Prime Minister Narendra Modi to the US will further strengthen technological cooperation in various fields such as semiconductors, 6G networks, quantum computing, artificial intelligence and climate technology. Among them, in terms of semiconductors, US semiconductor companies will establish a semiconductor ecosystem in India to enhance supply chain diversification.
It is reported that US semiconductor company Micron has committed to spend US$2.75 billion to build an assembly and test facility in India, which will be supported by the Indian National Semiconductor Mission (INSMEM). Applied Materials will also announce the establishment of a new centre for commercialisation and innovation of semiconductors in India. The US will help train 60,000 Indian engineers and will announce support for India to join the US-led Mineral Security Partnership to ensure India has access to the minerals it needs to produce semiconductors.
In August 2022, the US formally introduced the Chip and Science Act of 2022, which authorises the US federal government to provide $52.7 billion in subsidies to the semiconductor industry. Of this, US$39 billion will be used to subsidise expansion and new semiconductor plants, US$13.2 billion for research and development and labour development, and US$500 million related to strengthening the global industry chain.
In addition to the actual subsidies, the chip bill also has clear exclusionary provisions, with a view to promoting the "return" of chip manufacturing to the homeland through huge industry subsidies and curbing competition. In March this year, the U.S. Department of Commerce issued rules for companies to apply for subsidies, meaning that the U.S. chip bill entered the formal implementation phase.
Recently, the Information Technology and Innovation Foundation (ITIF), a U.S. think tank, released a new preliminary assessment report that India will bring great value to the semiconductor manufacturing ecosystem, and analyzed the scope for cooperation between the U.S. and India in the semiconductor industry. The report proposes that the US Chip and Science Act includes $500 million for the CHIPS International Technology Security and Innovation Fund. A significant portion of these funds should be allocated to projects of relevance to Indian interests. For example, in order to support design and foundry development, small to medium-sized joint foundries could be established to validate innovative chip designs. In addition, the report recommends that the two countries should collaborate to develop a comprehensive multinational semiconductor supply value chain map to support a strong and resilient semiconductor ecosystem.
There is no doubt that this US-India cooperation initiative in the areas of industrial economics and defence will deepen a strategic partnership built on shared geopolitical objectives. This geopolitical relationship will also allow India to increase its stakes in the semiconductor industry, as one side hopes to build a dominant position in the global semiconductor chain, while the other side hopes to reap the benefits of this strategy and promote the rise of its own semiconductor industry.
