India-US chip agreement may break ground soon. Following PM Modi’s visit, a semiconductor plant is on its way to Uttar Pradesh, looking to transform defence tech and power India’s position in the global semicon industry.
A new multi-material semiconductor fabrication unit is set to be established in Jewar, Uttar Pradesh, following an agreement between New Delhi and Washington during PM Narendra Modi’s recent visit to the US. This facility will manufacture chips designed to meet the national security requirements of both countries.
According to a report by the Times of India, the fab will be located near the forthcoming international airport in Jewar. It will have a testing centre, a centre of excellence, a design hub, and two fabrication units.
Furthermore, the facility is set to provide advanced chips to the US armed forces, allied militaries, and Indian defence forces. These chips will support various applications in warfare technologies, including night vision equipment, missile seekers, space sensors, drones, fighter jets, military communications, radars, electric vehicles, and jammers.
The plant will produce chips for railways, electric vehicles, and smart toll systems, in addition to defence applications. It will focus on producing infrared, gallium nitride, and silicon carbide semiconductors, which are more powerful and significantly faster than traditional silicon semiconductors.
The US security establishment has placed its trust in an Indian startup, 3rdiTech, led by entrepreneurs Vinayak Dalmia and Vrinda Kapoor, developing technology to produce chips for America’s security infrastructure.
3rdiTech is partnering with General Atomics, a principal US defence contractor, on projects to enhance defence technology in India. They plan to initially produce 50,000 units annually.
According to the report, this initiative marks a growing cooperation between India and the US under the Indo-Pacific Economic Corridor (ICET) and the CHIPS Act.
Moreover, collaboration among the US military, Bharat Semi, and 3rdiTech will position India as one of the few countries in the Indo-Pacific, alongside China, capable of manufacturing complex compound semiconductors.
Currently, India imports $1 billion worth of compound semiconductors annually for defence purposes. The new facility is expected to reduce this reliance on imports. Initially, the focus will be on supplying semiconductors to meet the needs of Indian and US defence forces. However, there are plans to cater to electric vehicle companies and 5G/6G applications eventually.
In addition, PM Modi and US President Joe Biden have announced efforts to establish resilient semiconductor supply chains, including creating the GF Kolkata Power Centre by GlobalFoundries in Kolkata. This centre will support research and development in chip manufacturing and advanced technology for low-emission vehicles, IoT devices, AI, and data centres.
