US, India sign chips memorandum as global tech race escalates

By Al Mayadeen English
Source: Agencies
11 Mar 13:15

The US and India agree to develop bilateral connections between the tech industries of both countries.

An illustration of a microchip integrated into a motherboard (crstrbrt)

The United States and India agreed to establish a semiconductor sub-committee to help develop stronger ties between the industries of both companies and create a supply chain connecting the relative chip sectors.

The sub-committee is expected to hold its first session before the end of this year.

The two countries signed a Memorandum of Understanding (MoU) on the matter during a Commercial Dialogue meeting in New Delhi between the Indian Minister of Commerce Piyush Goyal and his American counterpart Gina Raimondo.

"Towards that end [promoting cooperation in the semiconductor sector], the Minister and the Secretary welcomed the signing of a Memorandum of Understanding establishing a Semiconductor Sub-committee under the Commercial Dialogue, led by the Department of Commerce for the U.S. side and the Ministry of Electronics and Information Technology (MeitY) and Ministry of Commerce and Industry for the Indian side," both parties said in a joint statement.

The agreement comes amid increasingly hostile US measures toward Beijing, as the former is attempting to create an informal bloc with its international allies to restrict China's access to advanced semiconductors and machinery involved in manufacturing them.

The Netherlands said it introduced new plans to restrict chipmaking technology imports to China, which will be added to existing anti-China provisions adopted earlier following pressure from Washington to limit Beijing's access to the industry's technology.

In October 2022, the US Department of Commerce introduced sanctions on China, putting hurdles in Beijing's way to buy or develop advanced semiconductors.

China responded by filing a case with the World Trade Organization (WTO), hitting back at US export sanctions on microchips, further fueling the tech war between the two countries.

Last Tuesday, China accused Biden's administration of ramping up tensions toward Beijing following targeted unilateral sanctions against Chinese companies, by adopting restrictions to limit the Asian giant's access to some technologies and pressuring other countries to do so.