India, US signed MoU on semiconductor supply chain, innovation partnership
Tags: Economy/Finance National News
India and the US on 10 February signed a memorandum of understanding (MoU) on semiconductor supply chain and innovation partnership during the Commercial Dialogue 2023 in New Delhi.
An overview of the news
At the invitation of Commerce and Industry Minister Piyush Goyal, US Commerce Secretary Gina Raimondo visited Delhi from March 7 to 10.
During the visit, the India-US commercial dialogue was resumed on 10 March to discuss cooperation and open up new trade and investment opportunities between the two countries.
The MoU aims to establish a collaborative mechanism between the two governments on semiconductor supply chain resilience and diversification in the wake of the Chips and Science Act of the US and the Semiconductor Mission of India.
It aims to leverage the complementary strengths of both countries and facilitate commercial opportunities and development of the semiconductor innovation ecosystem through discussions on various aspects of the semiconductor value chain.
In addition, the MoU envisages mutually beneficial R&D, talent and skill development.
What are Semiconductor Chips?
It is a material which has conductivity between conductor and insulator.
Compounds of silicon or germanium or gallium, arsenide or cadmium selenide are used in this.
Why are semiconductors or chips so important?
It serves as the center and brain of all modern electronics and information and communication technology products.
The chips are used as data-storing memory chips, or logic chips that run programs.
Manufacturing of chips requires a lot of precision as well as investment.
This requires special conditions where even small disturbances around or inside the manufacturing unit can hamper production.
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