India and the U.S. signed a memorandum of understanding (MoU) establishing a semiconductor supply chain and innovation partnership. Gina Raimondo, the U.S. Commerce Secretary, indicated that the MOU is designed to help India achieve its goals of playing a more prominent role in the electronic supply chain.
Raimondo and her counterpart Piyush Goyal are putting the next step in the semiconductor industries of both countries to prepare an assessment of current gaps and lack of resiliency in the supply chain.
Through the Indo-Pacific Economic Framework (IPEF), the US, India, and a dozen other partners are developing policies to create more resilient and secure supply chains, accelerate progress, green transitions, and a better business environment.
The MoU establishes how information about semiconductor commercial opportunities will be shared between the two countries and how a continued dialogue around policies encouraging private sector investment in the semiconductor ecosystem will be established.
Raimondo did not mention labor standards that come with the promise of more U.S. investment and technology. The Indian side is seeking greater clarity on the trade pillar of the IPEF from which it has disassociated.