New Delhi— In a significant development, India and the European Union (EU) have signed a Memorandum of Understanding (MoU) focused on semiconductors. The agreement, finalized during a call between leaders of the EU-India Trade and Technology Council, aims to strengthen the semiconductor supply chain and foster innovation.
The EU revealed that the pact involves the exchange of information regarding “granted public subsidies.” According to the EU statement, the MoU facilitates the sharing of experiences, best practices, and information related to semiconductors between India and the EU. Areas of collaboration in research, development, and innovation among universities, research organizations, and businesses will also be explored.
During the call, the EU was represented by the TTC’s Executive Vice President Valdis Dombrovskis and Vice President Vera Jourova. The Indian delegation was led by External Affairs Minister S. Jaishankar, Minister for Railways, Communications, Electronics and Information Technology Ashwini Vaishnaw, and Commerce and Industry Minister Piyush Goyal.
Semiconductors, recognized as a strategic commodity driving the digital world, have gained increased importance in the post-COVID era. This agreement positions India to align more closely with the EU and the U.S. on the future of the semiconductor industry, especially in diversifying supply chains away from China dominance, particularly in the Indo-Pacific region.
The pact is expected to contribute to skills, talent, and workforce development for the semiconductor industry. It will also facilitate collaboration through workshops, partnerships, and the promotion of direct investments. Additionally, the agreement aims to ensure a level playing field in the sector by sharing information on granted public subsidies.
The EU has stated that the Trade and Technology Council is scheduled to convene in India in early 2024, marking a pivotal step in furthering collaboration between the two entities in the realm of semiconductors.
