India will establish its first semiconductor fabrication plant dedicated to national security, focused on producing chips for military hardware, telecommunications, and critical electronics. This landmark collaboration with the United States was announced after talks between Prime Minister Narendra Modi and President Joe Biden on September 22 in Wilmington.
The India-US semiconductor fabrication partnership was hailed as a “watershed arrangement” in a joint fact sheet released following the meeting. Supported by the India Semiconductor Mission, the project will see a strategic technology partnership between Bharat Semi, 3rdiTech, and the US Space Force.
The facility, named ‘Shakti,’ will concentrate on three vital areas for modern warfare: advanced sensing, communications, and high-voltage power electronics. It will be one of the world’s first multi-material semiconductor plants focused on national security. The plant will manufacture infrared, gallium nitride, and silicon carbide semiconductors.
Foreign Secretary Vikram Misri called the project “an enormously encouraging development,” emphasizing the importance of national security on both sides. This collaboration is considered a historic moment in India-US relations, with some comparing its significance to the civil nuclear deal. India currently imports around $1 billion worth of semiconductors annually for national security purposes.
The joint statement also highlighted efforts to strengthen global semiconductor supply chains, including Global Foundries’ creation of the GF Kolkata Power Centre. Modi and Biden also acknowledged progress in 5G and next-gen telecom cooperation, including a $7 million investment from the U.S. Agency for International Development to expand the Asia Open RAN Academy, which will train telecom professionals in India and South Asia.
