September 25, 2024 /SemiMedia/ — The U.S. and India have reached an agreement to jointly establish a semiconductor manufacturing plant in India, advancing Prime Minister Narendra Modi's push to boost the country's manufacturing sector.

According to the White House, the planned facility will produce infrared, gallium nitride (GaN), and silicon carbide (SiC) semiconductors. The announcement follows a meeting between U.S. President Joe Biden and Modi in Delaware. The project will be supported by the India Semiconductor Mission (ISM), with contributions from Bharat Semi, 3rdiTech, and the U.S. Space Force.

India’s strategic geopolitical position and growing potential in the tech sector are drawing increased attention. Over the past decade, Modi has worked to position India as an alternative to China, attracting companies like Apple and Samsung to relocate some of their manufacturing operations.

India’s technology minister, Ashwini Vaishnaw, recently stated that the country is developing its entire semiconductor value chain, aiming to expand its electronics industry to $500 billion by the end of the century.

Modi is currently in the U.S. for the Quad Summit, a three-day visit during which he will hold bilateral talks with American leaders and meet with members of the Indian diaspora and tech executives.