India to Establish First US-backed Semiconductor Plant

India and the US have announced the establishment of a groundbreaking semiconductor fabrication plant, marking their first joint effort in this sector, which will focus on producing chips for military applications and critical telecommunications. This initiative, following discussions between Prime Minister Narendra Modi and President Joe Biden, is hailed as a 'watershed arrangement,' comparable to the historic civil nuclear deal between the two nations. Named 'Shakti,' the facility will manufacture advanced semiconductors including infrared, gallium nitride, and silicon carbide, crucial for national security and next-generation technologies. The project will enhance India's self-reliance in semiconductor production, which currently incurs an annual import bill of around $1 billion for national security applications. Furthermore, it signals a significant shift in US-India technological collaboration, as this is the first time the US military is engaging in such a partnership with India, emphasizing advanced technology sharing. The collaboration aims to strengthen defense ties and foster a secure semiconductor supply chain amid growing concerns over global technology dependence.