India and the United States will jointly set up the world’s first multi-material chip fabrication unit in India, which will be exclusively for national security purposes.
During Prime Minister Narendra Modi's visit to the United States from 21-23 September 2024, a historic agreement was signed between him and American President Joe Biden on semiconductors.
Both the countries agreed to jointly set up a new semiconductor plant which will produce chips to be used in high-technology warfare platforms, like advanced communications, advanced sensing, and high voltage power electronics equipment.
With the establishment of the chip fabrication plant, India will become one of the few countries in the world to make such chips.
The landmark agreement between India and the United States on-chip fabrication is the result of the U.S.-India initiative on Critical and Emerging Technology (iCET).
In May 2022, during his official visit to the United States, Prime Minister Narendra Modi and Joe Biden announced the U.S.-India initiative on Critical and Emerging Technology (iCET) to promote cooperation in the field of strategic technology partnership and defence industrial cooperation between the governments, businesses, and academic institutions of the two countries.
The new fabrication unit, which will be called Shakti, will be set up in Jewar, Uttar Pradesh and it will be situated next to the under-construction Jewar International Airport.
The plant will be supported by the US Space Force, the Semiconductor Mission of the Indian government and the Indian chip manufacturing companies Bharat Semiconductors and 3ediTech.
The new chip fabrication unit will have both design and fabrication capabilities.
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