US India to setup the world's first multi-chip fabrication unit in Jewar, UP

Sources familiar with the agreement said the plant would have a testing centre, a centre of excellence, a design centre and two fabrication units. The fabrication unit will work towards high volume manufacturing of chips for night vision devices, missile seekers, space sensors, drones, fighter jets, electric vehicles, military communications, radars and jammers.

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The US military has agreed to a cutting-edge technology partnership with India to set up the world’s first multi-material fabrication unit for national security. PM Modi and President Biden have signed a watershed arrangement to establish a new semiconductor plant which will make chips used in high-technology warfare platforms including advanced sensing, advanced communications and high voltage power electronics. The new fabrication unit will come up in Jewar, Uttar Pradesh and will be next to the new and upcoming Jewar Airport.

India’s current import bill for semiconductors for national security alone is over one billion dollars a year. Sources said that this multi-chip military fab will lead to knowledge and tech transfer which will bring about import substitution of close to ₹ 6000 crores for India. After this technology partnership, India will be a part of a select group of nations which have the ability to make such chips on shore.



This is the culmination of growing India-US cooperation on semiconductors under ICET and a recently signed agreement to explore manufacturing in India under CHIPS Act. Also Read: Kamala Harris shows momentum in two polls while swing states stay tight The setting up of the chip fabrication unit will be supported by the US Space Force, the Indian Semiconductor Mission and Indian chip manufacturing companies Bharat Semiconductors and 3ediTech. The new fab which is likely to be called Shakti will have the capabilities of both design and fabrication.

Sources familiar with the agreement said the plant would have a testing centre, a centre of excellence, a design centre and two fabrication units. The fabrication unit will work towards high volume manufacturing of chips for night vision devices, missile seekers, space sensors, drones, fighter jets, electric vehicles, military communications, radars and jammers. India and the US could consider exports of chips to Quad nations, Asia Pacific and even Africa in future.

The joint statement issued by India and the US after the bilateral meeting between PM Modi and President Biden said that the fab will be established with the objective of manufacturing infrared, gallium nitride and silicon carbide semiconductors. Both India and the United States have agreed to set up a resilient supply chain for semiconductors and this is the first time the US Military and US Space Force have agreed on such a collaboration. Sources said that no other nation except China can build such cutting-edge chips in the Indo-Pacific.

During his address to the Indian diaspora in New York, PM said, "You will soon see a made-in-India chip in America as well. Such cutting edge will take India to new heights and this is Modi Ki Guarantee." Also Read: "We couldn't die for India, but we can live for the country", PM Modi addresses Indian diaspora in New York.