Syllabus: GS2/IR
Context
- India has collaborated with the United States to set up the first-ever national security semiconductor fabrication plant in the country.
About the Semiconductor Fabrication Plant
- Fab, to be known as ‘Shakti’, will focus on three essential pillars for modern war fighting — advanced sensing, advanced communications and high voltage power electronics,
- It will produce chips for use in military hardware in both the countries as well as in critical telecommunication networks and electronics.
- The fab will be manufacturing infrared, gallium nitride and silicon carbide semiconductors.
- The complete project will receive support from the India Semiconductor Mission and will be a part of the Strategic Technology Partnership among Bharat Semi, 3rdiTech, and the US Space Force.
- Significance: It is the first time that the U.S. military has agreed to do a partnership for these high-value technologies with India and it is a watershed moment as it is as significant as the civil nuclear deal.
- The project will enhance mutually beneficial linkages in research and development in chip manufacturing.
- This will reduce India’s dependence on semiconductor imports, which currently amount to $1 billion annually for national security purposes.
- This effort will address the increasing demands of key sectors like telecommunications, railways, and green energy.
| What are Semiconductors? – Semiconductors are materials with electrical properties that fall between those of conductors (like metals) and insulators (like rubber). 1. They have a unique ability to conduct electricity under certain conditions while acting as insulators under others. – They are sometimes referred to as integrated circuits (ICs) or microchips made from pure elements, typically silicon or germanium. – In a process called doping, small amounts of impurities are added to these pure elements, causing large changes in the conductivity of the material. – Applications: Semiconductors are used in a vast range of electronic devices. 1. Transistors, which are fundamental components of modern electronic circuits, rely on semiconductor materials. 2. They act as switches or amplifiers in everything from computers to cell phones. 3. Semiconductors are also used in solar cells, LEDs, and integrated circuits. |
Overview of India and US Bilateral Relations
- Since India’s independence, ties with the United States have weathered the Cold War–era distrust and estrangement over India’s nuclear program.
- Relations have warmed in recent years and cooperation has strengthened across a range of economic and political areas.
- Bilateral Trade: The bilateral trade between the two countries has risen by 72 percent between 2017-18 and 2022-23.
- The US accounted for 18 percent of the gross FDI inflows into India during 2021-22, ranking second behind Singapore.
- Defense and Security: India and the US have signed a troika of “foundational pacts” for deep military cooperation, beginning with the Logistics Exchange Memorandum of Agreement (LEMOA) in 2016, followed by the Communications Compatibility and Security Agreement (COMCASA) after the first 2+2 dialogue in 2018, and then the Basic Exchange and Cooperation Agreement (BECA) in 2020.
- In 2016, the United States elevated India to a major defense partner, a status no other country holds.
- Space: Artemis Accords signed by India established a common vision for the future of space exploration for the benefit of all humankind.
- The United States and India cooperate through the bilateral Civil Space Joint Working Group.
- Multilateral Cooperation: India and the United States cooperate closely in multilateral organizations and fora, including the United Nations, G20, Association of Southeast Asian Nations (ASEAN)-related fora, International Monetary Fund, World Bank, and World Trade Organization.
- Together with Australia and Japan, the United States and India convene as the Quad, a diplomatic network, to promote a free and open Indo-Pacific.
- Nuclear Cooperation: Civil Nuclear Deal was signed in 2005, under the agreement, India agrees to separate its civil and military nuclear facilities and place all its civil resources under International Atomic Energy Agency (IAEA) safeguards.
- In exchange, the United States agrees to work toward full civil nuclear cooperation with India.
Source: TH
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