India Joins US and Japan in EU Semiconductor Ecosystem Agreement

India and the European Commission have signed a memorandum of understanding (MoU) on semiconductors, marking a key milestone in their budding technological alliance.

EU Vice-President Valdis Dombrovskis and Vice-President Věra Jourová along with Foreign Minister S Jaishankar, Electronics and IT Minister Ashwini Vaishnaw and Commerce Minister Piyush Goyal gathered to assess the progress of EU-India trade. and the Technology Council (TTC) and laid the groundwork for future ministerial discussions.

During the discussions, Union Minister Vaishnaw and Internal Market Commissioner Thierry Breton signed a key agreement outlining a strategic roadmap for India-EU cooperation. The main focus of this agreement is on creating sustainable semiconductor supply chains and promoting joint innovation efforts.

The agreement outlines key objectives that demonstrate the joint commitment of India and the EU:

• Exchange of insights, best practices and information on relevant semiconductor ecosystems.
• Identifying opportunities for research, development and innovation cooperation between universities, research organizations and companies.
• Advancing skills development, talent acquisition and workforce expansion in the semiconductor industry through workshops, partnerships and direct investment.
• Fair competition within the industry by sharing information about public subsidies granted.

It is understood that this agreement will cause both parties to continue regular dialogue and provide updates within the framework of the TTC. A subsequent TTC ministerial meeting, scheduled for early 2024 in India, anticipates further progress in their collaborative efforts.

During a trade dialogue held in New Delhi in March, India and the US signed a memorandum of understanding focused on semiconductor supply chain creation and innovation partnership.

The memorandum of understanding signed by Union Minister Goyal and US Commerce Secretary Gina Raimondo establishes a cooperation mechanism between both governments with the aim of strengthening the sustainability and diversification of the semiconductor supply chain. This initiative is also aligned with the US CHIPS and Science Act and India’s semiconductor mission.

Similarly, in July, Union Minister Vaishnaw signed another agreement with Japan’s Minister of Economy, Trade and Industry Nishimura Yasutoshi to develop a semiconductor ecosystem focusing on manufacturing, engineering, research, talent and supply chain development.