US, India to sign MoU on semiconductors, says report
US Commerce Secretary Gina Raimondo said the US and India will sign a memorandum of understanding on semiconductors to help them coordinate investment, according to a Reuters report.
Raimondo is on a four-day trip to India and is scheduled to meet India’s trade minister on Friday.
The two nations will map out the semiconductor supply chain and identify opportunities for joint ventures and technology partnerships, the report quoted Raimondo saying.
Such an agreement could help give impetus to a $10 billion Indian initiative to attract inward investment in chipmaking (see Report: India plans $10 billion semiconductor subsidy). This is a sector where the sub-continent has almost no presence despite many years of attempts to attract chipmakers.
Raimondo said the US, was overly dependent on Taiwan as far as semiconductors were concerned. “Some 93 per cent of the world’s most advanced semiconductors are produced in Taiwan. That isn’t, by any measure, stable or resilient,” Raimondo is quoted saying during her tour.
Raimondo said that one of the problems to be overcome is Indian tariffs on materials, components and equipment that are used to make semiconductors.
However, Raimondo also said that Indian should not expect a free trade agreement (FTA) with the US. There is no appetite in the US Congress for a FTA with India, Raimondo said in an televised interview. Raimondo said that the India-Pacific Economic Framework (IPEF) launched last May could be more impactful than an FTA.
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