India-US Semiconductor Plant To Come Up In UP's Jewar, Will Make Chips For National Security Applications

The semiconductor plant that India and the United States have agreed to set up is likely to be located in Jewar, Uttar Pradesh, a report by CNBC TV18 says.

The plant will make chips for military and national security applications.

This initiative, supported by the India Semiconductor Mission, marks the first-ever collaboration of its kind between the two nations in semiconductor technology, involving Bharat Semiconductors, 3rdiTech, and the US Space Force.

Prime Minister Narendra Modi and President Joe Biden formalised the new partnership at their recent meeting on the sidelines of the Quad Leaders' Summit. It has been described as a watershed moment akin to the historic civil nuclear deal.

It is the first time the US military has agreed to share critical technologies with India, establishing a multi-material fabrication unit for national security applications.

It is expected to produce chips for high-technology warfare platforms, including night vision devices, missile seekers, and military communications systems.

Currently, India’s semiconductor import bill for national security exceeds $1 billion annually, but this new venture could lead to significant import substitution, estimated at Rs 6,000 crores, the report cited earlier says.

The fabrication unit will feature a testing center, a center of excellence, a design center, and two fabrication units, supporting high-volume chip manufacturing.

Future plans may include exporting these chips to Quad nations and regions in the Asia Pacific and Africa.

The Yogi Adityanath government in Uttar Pradesh has recently introduced an attractive semiconductor policy, offering substantial financial incentives, including a 50 per cent additional capital subsidy over the one offered by the Centre and a decade-long exemption from electricity duty, among other benefits.