Industry Bodies Recommend Advanced US-India Cooperation To Strengthen Semiconductor Competitiveness

A report commissioned by the Semiconductor Industry Association (SIA) and the India Electronics and Semiconductor Association (IESA) recommends advanced US-India cooperation on semiconductors through a partnership under the CHIPS for America International Technology Security and Innovation Fund (ITSI) to strengthen India’s semiconductor competitiveness.

The report, titled “Assessing India’s Readiness to Assume a Greater Role in Global Semiconductor Value Chains,” evaluates India’s existing semiconductor ecosystem and policy frameworks and offers recommendations to facilitate longer-term strategic development of complementary semiconductor ecosystems in the U.S. and India.

The report, which was authored by the Information Technology and Innovation Foundation (ITIF), also recommends creating a pilot visa programme to facilitate the circulation of skilled workers between the US and India, as a potential deliverable of the initiative on Critical and Emerging Technology (iCET).

It further suggests advanced policy reforms to lower the cost of doing business for semiconductor companies in India, including offering tax breaks to chip companies, reducing customs administration burdens, and expediting clearance times for goods entering the country.

Other suggestions include establishing cross-sector partnerships with higher-education institutions to grow India’s semiconductor-ready workforce and facilitating robust and ongoing consultation with semiconductor industry stakeholders.

“Given its rapidly expanding domestic market, a well-developed design ecosystem, supportive government policies, and concerted industry collaboration to tap global markets, the present juncture presents a unique opportunity for the establishment of semiconductor manufacturing in India. The report underscores India’s tremendous progress towards becoming a prime destination for electronics and semiconductor manufacturing, capitalising on its robust semiconductor design ecosystem," said Ashok Chandak, president of IESA.