India and the US will work together to increase the supply of semi conductors worldwide. In this regard, a Memorandum of Understanding (MoU) has been signed between the two countries during the India-USA Commercial Dialogue on Friday (March 10). The Commerce Ministry has given information about this.
On the invitation of Industry Minister Piyush Goyal, US Commerce Secretary Gina Raimondo came to Delhi to participate in the India-US CEO Forum. According to this agreement, both the countries will work on partnership in the sector of semi-conductor supply chain and innovation.
There is a big fight going on all over the world regarding semiconductor ie a small chip. While China is facing US sanctions, many American companies want to work with Indian companies in the supply chain of electronics and semi-conductor parts. India has also launched an incentive scheme of Rs 1000 crore for chip and display production. In such a situation, both the countries will benefit from this deal between India and America.
Semiconductor chips are made of silicon and are used to control electricity in circuits. This chip helps in operating these gadgets like a brain. Every electronic item is incomplete without them. From computers, laptops, cars, washing machines, ATMs, hospital machines to handheld smartphones, they work on semiconductor chips only.
This chip helps in operating the electronic item automatically. For example, in a smart washing machine, the automatic machine shuts off after the clothes are completely washed. Similarly, when you forget to wear seat belt in the car, the car gives you an alert. This happens only with the help of semiconductor.
The country's first semiconductor plant will be established in Gujarat: India's first plant for making semiconductor is being built in Dholera, Gujarat. It is being built by a joint venture between Indian company Vedanta and Taiwan's electronics company Foxconn.
Gujarat Semiconductor Policy 2022-27: The Government of Gujarat will give subsidy and incentives to this project under 'Gujarat Semiconductor Policy 2022-27'.
According to a government official, Gujarat has become the first state in the country to have such a dedicated policy for the semiconductor and display fabrication sector. Under this policy, the project is expected to get a total subsidy of up to 75 per cent and zero stamp duty will be levied on the purchase of land. Also, for the first 5 years, the plant will be given Rs 12 per cubic meter of water.
The US is India's largest exporters and trading partner, while India is the ninth largest trading partner of the US. The US is also the third largest source of FDI in India and is among the top-5 investment destinations for India.