Semicon India 2024 and ITSI Fund | 16 Sep 2024

Source: ET

Why in News?

Recently, the Prime Minister of India inaugurated the Semicon India industry conference and highlighted India's growing partnerships with countries like the US, Japan and Singapore.

• In another development, the US and India collaborated under the International Technology Security and Innovation (ITSI) Fund to promote the development of a secure global semiconductor supply chain and telecommunications networks.

What is India's Vision for the Semiconductor Industry?

• India is poised to play a pivotal role in shaping the global semiconductor industry and spearheading efforts to establish a robust and resilient global supply chain.
• India aspires to expand its electronics sector from the current USD 150 billion to over USD 500 billion by the end of the decade, with the goal of generating over 6 million employment opportunities in the process.
• India has become the eighth nation globally to host a congregation of the international semiconductor industry, marking a significant milestone in the country’s growing prominence in this strategic sector.
• India's strength is anchored in its threefold power which is a reform-oriented government, a growing manufacturing sector, and a technology-driven, aspirational society and market.
• India, with its talent pool, growing research investments, rising data centre demand, and green transition efforts is set to become a global semiconductor powerhouse.
  • It aims to train 85,000 engineers and technicians over the next decade through strategic partnerships with 113 educational and research institutions.
  • Uttar Pradesh is emerging as a semiconductor design hub and a leader in consumer electronics.

What is the ITSI Fund?

• The US is collaborating with the Government of India to expand and diversify the global semiconductor ecosystem through the International Technology Security and Innovation Fund (ITSI).
  • The CHIPS Act created the ITSI Fund to secure and develop the global semiconductor supply chain and telecommunications networks.
• The initial phase involves a comprehensive review of India's semiconductor sector, focusing on Assembly, Testing, and Packaging (ATP).
• US-India cooperation aims to advance the global semiconductor supply chain and support digital transformation.
  • The partnership will also address supply chain logistics and align technological goals with shared democratic values to ensure equitable benefits of digital advancements.