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India has signed an MoU with the USA on establishing a semiconductor supply chain and innovation partnership.

India is on track for a thriving chip industry and manufacturing ecosystem over the next three years, Electronics and Information Technology (IT) Minister Ashwini Vaishnav announced last week, mentioning that the first semiconductor manufacturing chip (fab) to be unveiled in a few weeks. The Vedanta-Foxconn joint venture has chosen the Dholera Special Investment Zone near Gujarat as the location for its semiconductor and display production facilities.

Due to its fragile environment and resource scarcity, India has lagged behind more competitive bases, such as China and Vietnam, in establishing semi-wafer manufacturing units. Therefore, the government intends to promote the semiconductor industry to make India a leading supplier of semiconductors in the next five to six years. Although India does not manufacture semiconductors, it is one of the most talented countries in semiconductor design, accounting for up to 20% of all semiconductor design engineers worldwide.

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