The Union Cabinet, chaired by Prime Minister Narendra Modi, has been apprised of a Memorandum of Understanding (MoU) signed on November 21, 2023, between the Government of the Republic of India and the European Commission. This agreement focuses on working arrangements concerning Semiconductors Ecosystems, their supply chain, and innovation within the framework of the EU-India Trade and Technology Council (TTC).
The Ministry of Electronics and Information Technology (MeitY) has played a pivotal role in fostering an environment conducive to electronics manufacturing. The introduction of the Program for Development of Semiconductor and Display Manufacturing Ecosystem in India reflects the broader goal to develop a robust and sustainable semiconductor and display industry.
Further enhancing India’s semiconductor and display manufacturing ecosystem, the India Semiconductor Mission (ISM) has been instituted under Digital India Corporation (DIC). ISM is tasked with driving India’s strategies for the development of this critical industry in the country.
MeitY’s mandate extends to promoting international cooperation in emerging areas of Electronics and Information Technology under bilateral and regional frameworks. To fulfill this objective, MeitY has entered into Memoranda of Understanding (MoUs), Memorandum of Cooperation (MoCs), and Agreements with counterpart organizations and agencies worldwide. These agreements aim to foster bilateral cooperation, exchange of information, and ensure supply chain resilience, positioning India as a trusted partner on the global stage.
This program extends fiscal support for the establishment of Semiconductor Fabs, Display Fabs, and facilities for Compound Semiconductors, Silicon Photonics, Sensors, Discrete Semiconductors, Semiconductor Assembly, Testing, Marking, and Packaging (ATMP), and Outsourced Semiconductor Assembly and Test (OSAT).
In pursuit of this vision, India and the European Union have signed the MoU on Working Arrangements on Semiconductors Ecosystems. This collaborative effort represents a crucial step towards unlocking mutually beneficial business opportunities and partnerships between the two entities.
The MoU is designed to strengthen cooperation between India and the EU, focusing on enhancing semiconductor capabilities for the advancement of industries and digital technologies. The MoU is set to come into effect from the date of signature and will continue until both sides confirm that its objectives have been achieved or until one side discontinues its participation.
This MoU contributes in Government-to-Government (G2G) and Business-to-Business (B2B) collaboration, aimed at enhancing the resilience of semiconductor supply chains. By leveraging complementary strengths, India and the EU are set to promote collaboration in the field of semiconductors, fostering a more robust and interconnected global semiconductor ecosystem.