India and the US are taking a major leap in their strategic partnership, with Prime Minister Narendra Modi and President Joe Biden announcing a landmark agreement to set up a state-of-the-art semiconductor fabrication plant in Kolkata. The decision was formalised during bilateral talks in the US, marking a significant boost for India’s ambitions to become a global leader in semiconductor manufacturing. This move is expected to transform India’s tech landscape and reduce global dependency on East Asian chip hubs.

The Kolkata semiconductor plant will be pivotal in manufacturing advanced sensing, communication, and power electronics, which are crucial for emerging technologies, national security, and green energy applications. This initiative aligns with India’s growing demand for self-reliance in high-tech industries and complements the broader Make in India initiative, which aims to boost domestic manufacturing capabilities.

India enters semiconductor race

India has long faced challenges in securing a stable supply of semiconductors, a crucial component for industries ranging from automotive to consumer electronics. The plant in Kolkata, established in collaboration with Bharat Semi, 3rdiTech, and GlobalFoundries, seeks to solve these challenges. The project is supported by the India Semiconductor Mission and will also receive backing from the US Space Force. According to a joint statement, the facility will play a vital role in the production of chips needed for zero-emission vehicles, AI applications, and data centres.

Both Modi and Biden acknowledged the broader geopolitical implications of the partnership. The leaders hailed the plant as a game-changer, set to diversify global supply chains and reduce dependence on established semiconductor hubs. This initiative is part of the US and India’s collective efforts to forge stronger links in research and development while ensuring the security of critical technological infrastructure.

Strengthening US-India defence and tech ties

During their discussions, Modi and Biden also touched upon several other key areas of cooperation. India will procure 31 General Atomics MQ-9B drones from the US, a deal that will significantly enhance India’s intelligence and surveillance capabilities. Additionally, they discussed the INDUS-X initiative, launched in 2023, which fosters deeper collaboration in defence technologies between both countries. With this semiconductor plant, the US-India partnership is set to enter a new phase, expanding into advanced technology and manufacturing collaboration.

The White House also confirmed that the semiconductor fabrication plant would generate thousands of high-quality jobs in both India and the US. Biden reportedly expressed his confidence that this deal symbolised a deeper, more dynamic partnership than ever before between the two nations.

Expert opinions

Experts have been quick to point out the significance of the semiconductor plant for India. A senior technology analyst mentioned that “India is set to gain immense strategic leverage by hosting this facility in Kolkata.” He added that the partnership with GlobalFoundries and the backing of the US government would not only boost India’s manufacturing ecosystem but also position it as a critical player in global supply chains. Another analyst highlighted how this move could help India attract future investments in advanced technology sectors.

Furthermore, experts believe that this deal represents India’s readiness to engage in cross-border technological partnerships. With rising demand for semiconductors globally, especially due to the rapid growth of industries like electric vehicles and AI, India’s role in securing supply chains has never been more critical.

Looking ahead: Kolkata as a tech hub

The semiconductor fabrication plant is expected to kick-start a technological revolution in Kolkata, turning the city into a major tech hub for chip production. This initiative is not only poised to boost India’s economy but also make a significant impact globally by addressing the current semiconductor supply shortages. The move is symbolic of India’s growing stature on the global stage and its deepening relationship with the US, which has seen a surge in technology and defence partnerships over the past decade.

As global tensions rise over control of critical technologies, the Kolkata plant offers a strategic advantage for both nations. This partnership reflects India’s intention to become a dominant player in the tech world while reducing global reliance on a single region for chip production.

The Modi-Biden agreement to establish a semiconductor plant in Kolkata is a significant development in the global semiconductor industry. It will not only propel India towards technological self-reliance but also redefine its role in the world’s critical technology supply chains. This new venture promises to create thousands of jobs, drive innovation, and strengthen the US-India relationship, making it a critical piece in the global semiconductor puzzle.

  3rdiTech, Bharat Semi, GlobalFoundries, India Semiconductor Mission, INDUS-X, Joe Biden, Kolkata, MQ-9B drones, Narendra Modi, US Space Force