India and the United States have struck a pivotal semiconductor manufacturing deal, in a move that promises to enhance collaboration on sensitive military technology and redefine the South Asian nation’s position in the global chip supply chain.
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During Indian Prime Minister Narendra Modi’s visit to Washington earlier this month, he and US President Joe Biden finalised the agreement to establish a semiconductor fabrication plant in Kolkata. The facility in the eastern Indian city will focus on defence equipment, telecommunications, and renewable energy, as detailed in an Indo-US joint fact sheet.
Analysts view this partnership as a significant leap onto the global semiconductor stage for India, a goal New Delhi has pursued since first signalling its chip ambitions in 2021.
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“This deal can be compared with India’s civil nuclear agreement with the US, which in the geopolitical context brought India out of its outlier status,” said C. Uday Bhaskar, director of the Society for Policy Studies in Delhi.
Before that landmark 2005 pact India had only limited access to the most advanced civil nuclear technology.