NEW DELHI: A multi-material semiconductor fabrication unit, to be established in India as part of an agreement between New Delhi and Washington during Prime Minister Narendra Modi’s recent visit to the US, will produce chips to meet the national security needs of both nations. The plant, likely to be located in Jewar, Uttar Pradesh, near the upcoming international airport, will supply advanced chips to the US armed forces, allied militaries, and the Indian defense forces.
This state-of-the-art semiconductor plant will manufacture chips for advanced warfare technologies, including night vision devices, missile seekers, space sensors, drones, fighter jets, electric vehicles, military communications, radars, and jammers. The facility will feature a testing center, a center of excellence, a design hub, and two fabrication units, marking a significant step in India-US cooperation under initiatives like the Indo-Pacific Economic Corridor (ICET) and the CHIPS Act aimed at strengthening semiconductor manufacturing.
Addressing the Indian diaspora in New York after the agreement, PM Modi hinted at the semiconductor deal, stating, “The day is not far when you will see made-in-India chips in America. This small thing will take India to another level. And this is Modi’s guarantee.”
In addition to defense equipment, semiconductors produced at this facility will find applications in railways, electric vehicles, and smart toll systems. The US has placed its trust in an Indian startup, 3rdiTech, led by entrepreneurs Vinayak Dalmia and Vrinda Kapoor, to develop technology that will contribute to both American security infrastructure and its allies. The startup is collaborating with US defense major General Atomics on key projects to boost India’s defense technology capabilities, with plans to initially produce 50,000 units annually in phase one.
This collaboration between the US Military, Bharat Semi, and 3rdiTech will position India among a select few countries in the Indo-Pacific region, alongside China, with the capacity to manufacture complex compound semiconductors. The plant will primarily focus on producing infrared, gallium nitride, and silicon carbide semiconductors. Unlike traditional silicon semiconductors, which account for 80% of global production, compound semiconductors, used in 20%, can handle more power and are 100 times faster than their silicon counterparts.
Currently, India imports $1 billion worth of compound semiconductors annually for defense purposes. Once operational, this plant will drastically reduce the country’s dependence on imported chips. While the company may eventually sell semiconductors to sectors like electric vehicles, 5G and 6G applications, and other technology industries, its initial priority will be to meet the semiconductor demands of the Indian and US defense forces.
In addition to the fabrication plant, the joint fact sheet from the India-US agreement also highlighted plans for the semiconductor sector, with both Modi and US President Joe Biden praising the efforts to establish secure and sustainable semiconductor supply chains. This includes the creation of the GlobalFoundries’ (GF) Power Centre in Kolkata, which will foster research and development in chip manufacturing and support advancements in zero-emission vehicles, AI, and the Internet of Things (IoT) devices.
