India to manufacture semicon chips for US armed forces, Space Force to help set up plant

India, with the help of US Space Force, will set up its first semiconductor fabrication plant solely dedicated to national security, an initiative that will provide critical chips to the US military, allied forces, and India’s own defence sector.

This significant development follows a key agreement between India and the United States, detailed in the joint statement released after Prime Minister Narendra Modi’s meeting with President Joe Biden in Delaware.

The new semiconductor plant is set to specialise in the production of advanced components for a range of crucial applications, including national security, next-generation telecommunications, and green energy technologies.

The facility will focus on manufacturing infrared, gallium nitride, and silicon carbide semiconductors, vital for these cutting-edge sectors.

The project will be driven by the India Semiconductor Mission, in collaboration with strategic partners Bharat Semi, 3rdiTech, along with the US Space Force, ensuring that the plant meets both Indian and American security needs.

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Both, President Biden and PM Modi acknowledged the importance of this collaboration, viewing it as a crucial step towards establishing resilient and secure semiconductor supply chains. The partnership also highlights the increasing strategic alignment between India and the United States in the technology sector. A prime example of this growing cooperation is GlobalFoundries’ (GF) initiative to set up the GF Kolkata Power Center in Kolkata.

This facility is expected to enhance research and development efforts in semiconductor manufacturing, paving the way for innovations in zero-emission vehicles, connected technologies, AI, and data centres.

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In addition to semiconductor manufacturing, the joint statement underscored recent private-sector collaborations in emerging technologies. One such collaboration involves IBM, which has signed memorandum of understanding with the Indian government to deploy its Watsonx platform on India’s Airawat supercomputer.

This initiative is expected to spur new advancements in artificial intelligence, boost research and development on advanced semiconductor processors, and support India’s National Quantum Mission.

The leaders expressed their satisfaction with the progress made since the signing of a Memorandum of Understanding (MOU) between the US Commerce Department and India’s Ministry of Commerce and Industry in November 2023.

This MOU aims to strengthen innovation ecosystems in both nations, under the “Innovation Handshake” agenda. As part of this effort, industry roundtables have been held in both the US and India, bringing together startups, investors, and government officials to foster connections and accelerate investments in innovation.

Furthermore, US and India are also likely to work in the space sector, with both countries making strides towards the first joint NASA-ISRO mission to the International Space Station in 2025. The leaders expressed optimism that these efforts would open new avenues for cooperation, particularly in civil and commercial space domains.

During a briefing on Prime Minister Modi’s US visit, Foreign Secretary Vikram Misri highlighted India’s emphasis on leveraging technology for good governance and development, while minimising conflict and division. These themes were prominently reflected in the discussions, with technology taking centre stage in both bilateral and plurilateral meetings, as evidenced by the Quad fact sheet and the joint statement with the United States.