India and US Partner to Launch First National Security Chip Plant
Politics

India and US Partner to Launch First National Security Chip Plant

In a significant boost to India’s semiconductor ambitions, US President Joe Biden and Prime Minister Narendra Modi have established strategic cooperation to build the country’s first national security semiconductor fabrication factory, Bharat Semi Fab. This collaboration between India’s Bharat Semi, 3rdiTech, and the United States Space Force is the two countries’ first semiconductor cooperation, with the fab focussing on cutting-edge technology for national security and vital sectors.

The Bharat Semi Fab, dubbed “Shakti,” will manufacture infrared, gallium nitride, and silicon carbide semiconductors, which are critical for defence and commercial sectors such as telecommunications, green energy, and railways. This program is expected to lower India’s $1 billion yearly semiconductor imports, helping it achieve its objective of becoming a “net security provider” in the Indo-Pacific region.

This alliance, which analysts compare to the 2008 India-US civil nuclear pact, is viewed as a watershed moment in technology diplomacy.

The Bharat Semi Fab will position India as a semiconductor supply chain leader, alleviating global shortages while also strengthening regional security through the Quad Alliance. The engagement of the United States Space Force emphasises the project’s strategic importance, which boosts bilateral ties while countering China’s growing dominance in semiconductor technology.