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India-US Pact On Semiconductor
News: The Memorandum of Understanding (MoU) that India and the US signed can help India realise its long-cherished aim of being a hub for electronic goods during the 5th Commercial Dialogue between India and the US in 2023.
In light of the US CHIPS and Science Act and India’s Semiconductor Mission, the Agreement aims to create a collaboration mechanism between the two governments on supply chain resiliency and diversity for semiconductors.
Chip manufacturing powerhouses include the US and China. So, India is likely to benefit greatly from this agreement with the US to increase cooperation in the semiconductor industry in order to boost business possibilities and the growth of innovation ecosystems.
India may become more aligned with a more central position in the global electronics supply chain with the aid of the electronics supply chain.
The supply shortage of semiconductors started in COVID-19 and grew worse in 2021.
According to a Goldman Sachs research, the worldwide chip supply crisis in 2021 had an effect on at least 169 different businesses.
Domestically, this might also lead to a future revision of India’s current chip manufacturing policy strategy.
