India and the European Commission have signed a deal to increase cooperation on the semiconductor ecosystem, its supply chain and innovation under the framework of the EU-India Trade and Technology Council (TTC).
The deal stands for the advancement of Industries and digital technologies, including government-to-government (G2G) and business-to-business (B2B) cooperation.
It primarily focuses on enhancing the resilience of semiconductor supply chains and fostering collaborative efforts.
India’s Ministry of Electronics and Information Technology (MeitY) holds the responsibility to create a “conducive” environment for electronics manufacturing, which includes the programme for the development of the semiconductor and display manufacturing ecosystem in India.
The programme will offer fiscal support for the establishment of semiconductor and display manufacturing facilities like fabs, display fabs, fabs for compound semiconductors, silicon, photonics sensors and discrete semiconductors.
It will also support semiconductor assembly, testing, marking, and packaging (ATMP) facilities.
India has further established the India Semiconductor Mission (ISM) under Digital India Corporation (DIC) to drive strategies for developing the ecosystem.
MeitY has also been tasked to promote international cooperation in electronics and information technology under bilateral and regional frameworks.
India had more recently in November 2023, entered a pact with the European Union, to build “robust” semiconductor supply chains.
The deal was to identify areas for collaboration in research and development among universities, businesses and research organisations, while also promoting skills, workforce development and investment in the semiconductor space.
The partners said will they will ensure a “level playing field” in the sector by sharing information on granted public subsidies.
EU internal markets commissioner Thierry Breton said, “Chips are vital for our economies, and our cooperation on research and skills will be essential to strengthen resilience.”