Biden and Modi agreed to build a chip factory in India

The United States and India have reached an agreement under which a new semiconductor manufacturing plant will be built in the South Asian country. This was stated in an official statement from the White House, published after a meeting between US President Joseph Biden and Indian Prime Minister Narendra Modi, which took place last weekend in Delaware, USA.

Image source: Brendan Smialowski/AFP/Getty Images

The report said that the new plant will produce semiconductor products for use in infrared devices, as well as chips based on gallium nitride and silicon carbide. The establishment of the enterprise was made possible thanks to the “India Semiconductor Mission”, as well as the “strategic technology partnership between Bharat Semi, 3rdiTech Inc. and the US Space Force.”

India’s strategic geopolitical position in Asia has brought attention to the country and its capabilities in the technology industry. In recent years, Modi has repeatedly positioned his country as an alternative to China, and this has already brought some results. For example, Apple and Samsung moved part of their production capacity from China to India. Against this backdrop, India continues to move towards expanding its electronics sector to $500 billion by the end of the decade.

In addition, the countries announced plans to fund projects “catalyzing the development of India’s domestic clean energy supply chain” totaling $1 billion. As part of his trip to the US, Modi will attend the annual Quad summit and hold bilateral talks with leaders of several countries, and will also speak at the UN General Assembly and meet with the heads of American technology companies.