On Thursday, 18th January 2024, the Union Cabinet received information about an agreement between India and the European Commission under the EU-India Trade and Technology Council (TTC), focusing on collaborative efforts in semiconductor ecosystems, supply chain dynamics, and innovation. The memorandum of understanding (MoU), inked on November 21 last year, aims to fortify cooperation between India and the EU for the advancement of semiconductor technologies in industries and digital sectors.
The MoU becomes effective upon signature and remains in force until both parties affirm the accomplishment of its objectives or until one side opts out. This agreement encompasses both government-to-government (G2G) and business-to-business (B2B) collaborations, aimed at enhancing the resilience of semiconductor supply chains. The intention is to capitalize on complementary strengths to foster joint endeavours in the field of semiconductors.
Ministry of Electronics and Information Technology (MeitY) has actively undertaken initiatives to foster a conducive environment for electronic manufacturing. The introduction of the Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India reflects the commitment to establishing a robust and sustainable semiconductor and display ecosystem in the country.
This program is designed to provide financial support for the establishment of various facilities, including Semiconductor Fabs, Display Fabs, Fabs for Compound Semiconductors/Silicon Photonics/Sensors/Discrete Semiconductors, and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) facilities. Additionally, the India Semiconductor Mission (ISM) has been instituted under Digital India Corporation (DIC) to drive strategic initiatives for the development of the semiconductor and display manufacturing ecosystem in India.
MeitY's mandate extends to promoting international cooperation in emerging areas of Electronics and Information Technology through bilateral and regional frameworks. In pursuit of this objective, MeitY has engaged in Memoranda of Understanding (MoUs), Memoranda of Cooperation (MoCs), and agreements with counterpart organizations/agencies from various countries. These collaborations aim to facilitate bilateral cooperation, information exchange, and ensure supply chain resilience, positioning India as a trusted partner on the global stage.
The recently signed MoU between India and the EU signifies an enhanced focus on bilateral collaboration to strengthen semiconductor supply chains. This step is pivotal in leveraging complementary strengths and fostering collaboration in the semiconductor domain, marking a significant stride toward mutually beneficial business opportunities and partnerships between India and the EU.