India to Build First National Security Semiconductor Plant

  • 24 Sep 2024

On 23rd September 2024, India announced that it will establish its first national security semiconductor fabrication plant through a joint venture with the U.S., focusing on military hardware, telecommunications, and electronics.

Key Points

  • India-U.S. Collaboration on Semiconductor Fab: India and the U.S. have announced a partnership to build a semiconductor fab that will produce chips for military and telecommunication use in both countries.
  • Significance of Joint Semiconductor Fabrication Plant: Prime Minister and U.S. President unveiled the project following talks in Wilmington on September 21, 2024, hailing it as a historic milestone in bilateral relations.
  • Strategic Partnership for National Security: The fabrication plant, known as “Shakti,” will be established with the support of the India Semiconductor Mission and involves collaboration between Bharat Semi, 3rdiTech, and the U.S. Space Force.
  • Focus of the Semiconductor Fab: The "Shakti" fab will specialize in producing semiconductors essential for advanced sensing, communication, and power electronics applications.
  • Advanced Semiconductor Materials in Focus: The semiconductor fab will be among the world’s first to utilize materials such as infrared, gallium nitride, and silicon carbide.
  • Mutual Benefits and Technological Cooperation: The initiative will enhance India's semiconductor manufacturing capacity, while supporting the U.S. in securing its semiconductor supply chains.
  • Broader Semiconductor Ecosystem Developments: In addition to the semiconductor plant, the GlobalFoundries’ (GF) creation of the GF Kolkata Power Centre will further strengthen India’s semiconductor capabilities.
  • Telecommunications and 5G Cooperation: The partnership will also extend to 5G deployment, with the U.S. Agency for International Development committing $7 million to workforce training initiatives, focusing on building resilient telecommunications infrastructure.