India, US to Sign Memorandum of Understanding on Semiconductors

NEW DELHI—The United States and India will sign a memorandum of understanding on semiconductors as both countries discuss coordination of investment and continue dialogue around policies to spur private investment, U.S. Commerce Secretary Gina Raimondo said on Thursday.

Raimondo is currently on a 4-day trip to India with 10 chief executive officers from the United States. On Friday, he is to meet India’s trade minister.

Raimondo said that the two countries will collaborate to map the semiconductor supply chain and find opportunities for joint ventures or technology partnerships.

India seeks to attract larger-ticket investments through a $10 Billion incentive plan for display production and chip manufacturing. The goal is to be a key player within the global supply chain.

The South Asian nation increased fiscal support to local semiconductor facilities last year in order to cover 50% of the project costs.