Biden pledges strong partnership with India, says US "committed to strengthen" semiconductor supply chain
President Biden also underscored the importance of working together with India, Japan, the Republic of Korea, and Singapore to strengthen the critical semiconductor industry.
- United States
By Reena Bhardwaj US President Joe Biden on Thursday (local time) reaffirmed the United States' "commitment to strengthen" the semiconductor supply chain, with a special emphasis on collaborative efforts with key nations, including India.
President Biden also underscored the importance of working together with India, Japan, the Republic of Korea, and Singapore to strengthen the critical semiconductor industry. "When I travelled to Vietnam. As I mentioned earlier, to mark historic new phase in our partnership of our countries, we committed to work together to strengthen the semiconductor supply chain with India, Japan, Republic of Korea, and Singapore. We have launched new initiatives to shape the technologies and standards that will transform the future," Biden stated during his remarks at the APEC CEO Summit.
The President highlighted the launch of new initiatives aimed at shaping technologies and standards that will drive transformation in the semiconductor sector. The move reflects a shared commitment to addressing the challenges of the evolving technological landscape and fostering innovation in a collaborative manner. India, specifically mentioned by President Biden, is set to play a pivotal role in this global initiative. The strengthened partnership between the United States and India in the semiconductor domain not only signifies the mutual commitment to technological advancement but also underscores the strategic importance of India as a key player in the global technology landscape.
In March this year, India and the US inked a Memorandum of Understanding (MoU) on the semiconductor supply chain and innovation partnership during the India-USA Commercial Dialogue, re-launched with a strategic outlook with a focus on supply chain resiliency and diversification and new emerging areas, after a gap of three years. The agreement was signed during the dialogue in New Delhi by Union Commerce and Industry Minister Piyush Goyal and US Secretary of Commerce Gina M Raimondo on March 10.
A White House Factsheet mentioned the collaboration as "a technology partnership for the future" "Micron Technology, Inc - with support from the India Semiconductor Mission - will invest more than USD 800 million toward a new USD 2.75 billion semiconductor assembly and test facility in India. Applied Materials has announced it will build a Semiconductor Centre for Commercialisation and Innovation in India to further strengthen our nations' semiconductor supply chain diversification," it said.
The MoU, signed between India and the US, seeks to establish a collaborative mechanism between the two governments on semiconductor supply chain resiliency and diversification in view of the US's CHIPS and Science Act and India's semiconductor Mission. It aims to leverage the complementary strengths of both countries and facilitate commercial opportunities and the development of semiconductor innovation ecosystems through discussions on various aspects of the semiconductor value chain. The MoU envisages mutually beneficial research and development, and talent and skill development.
India is the ninth largest trading partner for the US, while the US is India's largest trading partner and the largest export destination, according to a statement of the Ministry of Commerce and Industry. The bilateral trade in goods saw robust growth during the calendar year 2022 (CY2022), surpassing USD 131 billion in goods, thus doubling since 2014 (in 8 years) while total trade in goods and services is expected to cross USD 180 billion.
According to the ministry statement, US is also the third biggest source of foreign direct investment (FDI) for India, and the US is one of the top five investment destinations for India. It also said this visit of the US commerce secretary would immensely contribute towards furthering trade and commercial ties between the two countries. Notably, leaders of the 21-member Asia-Pacific Economic Cooperation Forum are meeting in San Francisco for the 30th APEC Leadership Summit being hosted by the US and chaired by President Biden.
APEC members account for 62 per cent of the global GDP and almost half of global trade. Its members are Australia, Brunei, Canada, Indonesia, Japan, S Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, US, Taiwan, Hong Kong, China, Mexico, Papua New Guinea, Chile, Peru, Russia and Vietnam. India, a major economy, is not part of APEC. President Biden had invited Prime Minister Narendra Modi to attend this year's APEC Leadership Summit. India is being represented by its Commerce and Industry Minister Piyush Goyal. (ANI)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)