India and the US will set up a new semiconductor fabrication plant, called ‘Shakti,' which will be one of the world's first multi-material fabs dedicated to national security.

US President Joe Biden and Prime Minister Narendra Modi hailed a watershed arrangement to establish a new semiconductor fabrication plant focused on advanced sensing, communication, and power electronics for national security, next generation telecommunications, and green energy applications.

The fab unit will be a partnership involving Bharat Semiconductors, 3rdiTech, and the US Space Force.

The facility, likely to come up in Uttar Pradesh, will focus on three key areas essential for modern warfare -- advanced sensing, communication and high-voltage power electronics.

The fab, to be established with the objective of manufacturing infrared, gallium nitride and silicon carbide semiconductors, will be enabled by support from the India Semiconductor Mission, as well as a strategic technology partnership between Bharat Semi, 3rdiTech, and the US Space Force.

During their meeting, both the leaders also praised combined efforts to facilitate resilient, secure, and sustainable semiconductor supply chains including through GlobalFoundries’ (GF) creation of the GF Kolkata Power Center in Kolkata that will enhance mutually beneficial linkages in research and development in chip manufacturing and enable game-changing advances for zero and low emission as well as connected vehicles, internet of things devices, AI, and data centres.

They noted GF’s plans to explore longer term, cross-border manufacturing and technology partnerships with India which will deliver high-quality jobs in both of our countries.

They also celebrated the new strategic partnership between the U.S. Department of State and the India Semiconductor Mission, Ministry of Electronics and Information Technology in connection with the International Technology Security and Innovation (ITSI) Fund.

Both the nations also welcomed steps our industry is taking to build safe, secure, and resilient supply chains for US, Indian, and international automotive markets, including through Ford Motor Company’s submission of a Letter of Intent to utilise its Chennai plant to manufacture for export to global markets.