India and U.S. Join Forces to Build Semiconductor Fabrication Hubs for Strategic Tech Leadership

In a major leap toward technological self-reliance, India and the United States have agreed to jointly establish a semiconductor fabrication ecosystem in India under the U.S.–India Initiative on Critical and Emerging Technology (iCET). This strategic collaboration will focus on national security use-cases, aiming to reduce dependency on China and bolster supply chain resilience.

As part of this initiative, the two countries will:

• Set up two semiconductor fabs in India
• Establish design and testing centers
• Facilitate technology transfer and investment from U.S.-based semiconductor giants
• Focus on defense-grade and critical application chips, including 28nm and below

The first phase of chip production is expected to go live by 2027, marking a major milestone in India’s effort to become a global hub for advanced electronics manufacturing.

This initiative builds on India’s ₹76,000 crore semiconductor mission and reflects the deepening strategic tech partnership between the two democracies. It comes at a time when global semiconductor shortages and geopolitical tensions have emphasized the need for diversified chip production capabilities.

Officials from both sides have highlighted the importance of this collaboration in ensuring technological sovereignty, boosting defense readiness, and creating high-skilled jobs in India. The move is also seen as a significant boost to India’s “Make in India” and “Atmanirbhar Bharat” (self-reliant India) missions.

The India–U.S. semiconductor deal is being hailed as a milestone in global chip manufacturing strategy, positioning India as a credible alternative to traditional semiconductor powerhouses. With both countries committing to joint R&D and infrastructure investments, the semiconductor fabrication initiative in India is expected to create a ripple effect across tech, defense, and manufacturing ecosystems. Industry leaders believe this could catalyze the rise of a new semiconductor manufacturing hub in South Asia, reducing reliance on volatile supply chains in East Asia.

This collaboration aligns closely with India’s Make in India and Atmanirbhar Bharat goals, signaling a serious push toward self-reliance in critical technology sectors. The focus on producing defense-grade chips and advanced integrated circuits will not only enhance national security but also enable India to contribute meaningfully to global semiconductor supply chains. With growing global demand for strategic tech partnerships, the iCET semiconductor plan is expected to be a cornerstone of future U.S.–India cooperation in advanced technology domains.

With global players increasingly adopting a China-plus-one strategy, India’s inclusion in cutting-edge chip manufacturing could reposition the country as a key player in the 21st-century tech economy.