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India Partners With US For Its First Defence Chip Fab

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Following PM Modi’s US visit and meeting with President Biden, India is set to have its first national security semiconductor plant in collaboration with the US.

India is preparing to open its first national security semiconductor fabrication plant in collaboration with the United States. The plant aims to produce chips for military and crucial telecommunications uses. On Saturday, the project was announced after a meeting between Prime Minister Narendra Modi and US President Joe Biden in Wilmington, following the former’s three-day US visit.

The venture will be further supported by the India Semiconductor Mission and involves a strategic alliance between Bharat Semi, 3rdiTech, and the US Space Force. According to a joint fact sheet, the leaders referred to it as a ‘watershed arrangement.’

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The plant, named ‘Shakti’, will specialise in producing infrared, gallium nitride, and silicon carbide semiconductors.

According to the Indian Express, it will be India’s first of its kind and among the world’s premium multi-material fabs dedicated to national security. It further represents a major advancement, akin to the civil nuclear agreement, marking the first time the US military has collaborated with India on high-value technologies.

The fact sheet noted that the celebrated semiconductor fabrication plant will focus on advanced sensing, communication, and power electronics for national security, next-generation telecommunications, and green energy applications, as reported by Reuters.

Foreign Secretary Vikram Misri called the initiative an extremely reassuring development. He explained that the project aims to leverage India’s growing design and manufacturing capabilities in the semiconductor field.

It would also reduce India’s annual import bill for national security-related semiconductors, which is around US$1 billion.

Additionally, PM Modi and President Biden acknowledged efforts to establish resilient and secure semiconductor supply chains, including GlobalFoundries’ establishment of the GF Kolkata Power Centre.

As per the fact sheet, the leaders commended ongoing cooperation in 5G deployment, noting the US Agency for International Development’s plans to invest US$7 million to expand the Asia Open RAN Academy, focusing on workforce training in South Asia and partnerships with Indian institutions.

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Shubha Mitra
Shubha Mitra
Shubha is a journalist at EFY. She is keenly interested in India's evolving electronics ecosystem. Her focus revolves around government policies, legislation, and public-private partnerships related to the industry.

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