Prime Minister Modi and US President Biden announce plans for new chip factory in India
The US and India have reached an agreement to work together to set up a semiconductor manufacturing facility in the South Asian country, boosting Prime Minister Narendra Modi’s efforts to boost manufacturing in the country.
The proposed plant will make infrared, gallium nitride and silicon carbide semiconductors, according to a White House statement following a meeting between US President Joe Biden and Prime Minister Modi in Delaware on Saturday. The facility will be made possible by support from the India Semiconductor Mission and a “strategic technology partnership between Bharat Semi, 3rdiTech Inc and the US Space Force”, the statement said.
India’s strategic geopolitical position in Asia has cast a new light on the country and the opportunities it can offer in technology. Over the past decade, Prime Minister Modi has repeatedly stated that he would position India as an alternative to China, and it has already begun to pull some of its manufacturing from Apple Inc and Samsung Electronics Co.
I had a fruitful roundtable with tech CEOs in New York, discussing aspects related to technology, innovation and more. Also, the progress that India has made in this area was highlighted. I am glad to see that there is a huge amount of optimism about India. photo.twitter.com/qW3sZ4fv3t
— Narendra Modi (@narendramodi) September 23, 2024
Earlier this month, India’s technology minister Ashwini Vaishnaw said the South Asian country is trying to develop the entire chip value chain. India aims to grow its electronics sector to $500 billion (approximately Rs. 41,83,292 crore) by the end of the decade.
The two countries also announced efforts to finance projects to “boosted the building of India’s domestic clean energy supply chain” for about $1 billion (approximately Rs 8,366 crore) through the International Bank for Reconstruction and Development.
Prime Minister Modi is visiting the US for the annual Quad summit. During the three-day trip, he will hold bilateral meetings with US leaders, address the United Nations General Assembly, and interact with the Indian diaspora and US technology executives.
On Sunday, PM Modi met Sundar Pichai of Alphabet Inc.’s Google, Jensen Huang of Nvidia Corp. and David Ricks of Eli Lilly & Co., among others, and also addressed an Indian diaspora event in Long Island, New York. The next Quad meeting is scheduled for 2025 in India.
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