During Prime Minister Narendra Modi’s visit to America, an important agreement has been reached between India and America regarding semiconductor chips.
Both the leaders have praised this agreement. India said that this agreement shows how much trust the world has in Indian startups.
Under this agreement, India will get its first national security semiconductor manufacturing plant, which will be constructed by the US by next year i.e. 2025, it has been named Shakti.
The semiconductor chips made in this plant will be used not only by India but also by the armies of America and its military allies.
In the first paragraph of the joint statement issued after the meeting between PM Modi and President Biden in Delaware, this agreement was praised and it was said that this will further strengthen the strategic technology partnership between the two countries.
For this deal, the US National Security Establishment has expressed confidence in the startup of two Indian entrepreneurs, Vinayak Dalmia and Vrinda Kapoor.
This startup has the technology to make semiconductor chips; the chips made by it will be useful for America’s allies and the Indian army.
Under this agreement, this startup is working with US Defense Major General Atomics. In fact, the foundation of this agreement starts from PM Modi’s visit to America in 2023. Kapoor had participated in the meeting of both the heads of state with technology CEOs, only then both the countries had decided to take this matter forward by issuing a joint statement.
According to a report by HT, this will be the world’s first multichip military fab to be built in collaboration with the US. The advanced sensing infrared chips will be used for night vision, missile seekers, space sensors, weapon sights, hand-held weapons for soldiers and drones.
Apart from this, advanced powerful chips will be used in satellites, drones, fighter planes, small satellites, electric vehicles, renewable energy, data centers and railway engines.
Both the countries have set a target to start this plant by 2025. In its first phase, 50 thousand chips will be manufactured from this plant. About 700 people will get employment through this fab.
Speaking on the deal, Konark Bhandari of Carnegie India told HT that there is not much information about the fab at the moment but it is a welcome step for the Indian semiconductor sector.
With this plant, India and the US will provide chips to their own armies as well as to their allied armies, which will be important for India to advance in this field in the future.
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