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India's role in semiconductor supply chain 'essential' as others seek to dominate sector: US envoy
US ambassador to India Sergio Gor on Saturday said as other countries in the neighbourhood seek to dominate the production of "legacy chips", India offers a reliable alternative and has an important role in the global semiconductor supply chain.
Gor was speaking at a function at Sanand in Gujarat where Prime Minister Narendra Modi inaugurated US-based Micron Technology's semiconductor plant.
Semiconductors are the foundation of modern technology, powering everything from smartphones to defence systems to AI to autonomous vehicles, the US envoy said, adding that creating "resilient supply chains" for these critical components requires building semiconductor ecosystems at "multiple trusted locations".
"India's role in the global semiconductor supply chain is not just welcome, it is essential under the leadership of your great PM. As other nations in this neighbourhood aggressively expand production of legacy chips and seek to dominate the sector, India offers the secure and reliable alternative," the US ambassador said.
President Donald Trump and PM Modi share deep friendship which will carry on for the next three years of the Trump administration, he said.
"This USD 2.75 billion investment represents far more than a new factory. It represents the future of American technology leadership, the strength of the US-India partnership, and our shared commitment to building a resilient supply chain that serves both our nations and the world," the ambassador said.
The plant at Sanand was just a beginning, and the ongoing 10 semiconductor projects worth USD 19 billion across India was the "direct testament" to PM Modi's vision and ability to "secure the future of India and for global partners including the US," Gor said.
When Modi and Trump met in Washington last February, they launched the US-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology), he noted.
"At the heart of the framework is the TRUST initiative---transforming the relationship utilising strategic technology. Today's inauguration embodies that vision," he said.
India's focus on chip design and assembly, testing, marking and packaging operations compliments America's drive to produce the most advanced chips in that assembly, Gor said.
The Gujarat government was incentivising semiconductor projects, setting an examples for other states, he added.
The US was "beyond proud" of Micron setting up a plant at Sanand, and other American companies are also "watching closely" and many are eager to explore opportunities in the state, Gor said.
Under Trump's leadership, the US is securing leadership at the forefront of the global semiconductor industry, and Micron's USD 100 billion, multi-fab semiconductor facility in Clay, New York, the largest in US history, demonstrates this commitment, the ambassador said.
"We are investing in advanced chip manufacturing at home while building trusted partnership abroad. But American leadership isn't about doing it alone. Its about working with our partners who share common goals and our vision for secure, prosperous future," said Gor.
Earlier, Modi said in his speech that the Micron plant was a testament to the collaboration between the two countries.
The Pax Silica agreement between India and the US was another initiative in this regard, and " our collective efforts will also make the global supply chain of critical minerals more secure and reliable," the PM said.
On February 20, India officially joined the Pax Silica initiative, a United States-led international coalition designed to secure global supply chains for Artificial Intelligence, semiconductors, and critical minerals.
Source: EconomicTimes
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