Prime Minister Narendra Modi's US Visit May Boost Chip Supply Deal

Prime Minister Narendra Modi's upcoming visit to the United States is likely to boost the Indo-Us technology partnership, with major focus on the establishment of a new semiconductor supply chain. US National Security Advisor Jake Sullivan during his two-day trip last week said there could be 'substantial results' on bilateral collaboration in the semiconductor supply chain.

This collaboration in the semiconductor sector is one of the primary goals of the US-India initiatives on Critical and Emerging Technology, which is the 'next big thing' between the two countries in order to create a democratic technology ecosystem. The initiative envisions closer cooperation between private industry and scientific institutions in the area of semiconductors, artificial intelligence and quantum computing, space, advanced materials, biotech and next-generation telecommunication.

In March, New Delhi and Washington signed an initial pact to increase private sector cooperation in the area of semiconductors. Under this pact both the countries will help each other grow business and develop a robust ecosystem. The memorandum of understanding will help in establishing a collaborative mechanism between the two governments on semiconductor supply chain resiliency. It will also help diversify views of US CHIPS and Science Act and India's Semiconductor Mission.

PM Modi and President Joe Biden are also likely to hold discussions on artificial intelligence as it will transform the economies, societies and national security, said Sullivan.

Modi to meet CEOs

Prime Minister Modi during his visit is expected to meet the CEOs of top 20 American companies that include Apple, Amazon, Google, Coca-cola and more. The meeting will be focused on a range of topics like attractive investments, business expansion and opportunities for alliances between the two countries. These meetings will emphasise the importance of India as a vital market for American businesses.