In a landmark achievement for India’s semiconductor industry and national security infrastructure, US President Joe Biden and Prime Minister Narendra Modi have announced a strategic partnership to establish India’s first-ever national security semiconductor fabrication plant.
The initiative is hailed as a watershed moment for the country’s ambitions to evolve from a “chip taker” to a “chip maker,” with significant implications for both nations. The fabrication plant, known as the Bharat Semi Fab, will focus on cutting-edge semiconductor technologies for national security and other critical sectors.
This initiative is the result of a collaboration between India’s Bharat Semi, 3rdiTech, and the US Space Force, marking the first India-US semiconductor fabrication cooperation of its kind. It is also the first time the US military has entered into a technology partnership with India on such valuable and sensitive technologies. Analysts have compared the significance of this partnership to that of the 2008 India-US civil nuclear deal, viewing it as a major leap in technology diplomacy between the two countries.
A Seminal Moment in Global Tech Diplomacy
Bharat Semi Fab, named “Shakti,” is poised to become a global leader as one of the world’s first multi-material semiconductor fabs focused on national security. It will not only bolster India’s security infrastructure but also address the growing needs of commercial sectors such as telecommunications, railways, and green energy. The fab will produce infrared, gallium nitride, and silicon carbide semiconductors, critical materials used in advanced sensing, communication, and high-voltage power electronics. These technologies, while essential for modern warfare, are equally crucial in commercial applications, supporting data centers, telecommunications, and renewable energy infrastructure.
The establishment of this fab is also seen as a significant step toward India becoming a “net security provider” in the Indo-Pacific region. Prime Minister Modi’s vision of Atmanirbhar Bharat (self-reliant India) emphasizes reducing the country’s dependence on imports, particularly in key strategic sectors. India currently imports $1 billion worth of semiconductors annually for national security purposes. This collaboration is expected to dramatically reduce that dependency while positioning India as a leader in the semiconductor supply chain.
Breaking Barriers in Semiconductor Manufacturing
The Bharat Semi Fab’s focus on compound semiconductors—an area that includes materials like gallium nitride and silicon carbide—represents a groundbreaking achievement for India. Compound semiconductors offer superior performance compared to traditional silicon semiconductors, particularly in high-temperature and high-voltage applications, making them ideal for defense and green energy technologies.
Historically, India has primarily focused on semiconductor testing and assembly, lacking the capability to manufacture chips at home. The Bharat Semi Fab changes that narrative. This partnership catapults India into an elite group of nations with the technology and know-how to fabricate advanced semiconductors domestically. For the US, the partnership with Bharat Semi and 3rdiTech provides access to a growing and trusted supply chain at a time when the global semiconductor industry is facing critical shortages and supply chain vulnerabilities.
Strengthening the Quad and Regional Security
Bharat Semi’s Shakti Fab is also one of the first fabs of its kind within the Quad. The Quad has increasingly focused on technological and economic cooperation, especially in areas critical to national security and regional stability. By bringing semiconductor fabrication to India, the Quad strengthens its collective security posture, providing a trusted source of advanced chips that are increasingly vital for defense systems and next-generation communications.
The US Space Force’s involvement in this project further underscores the significance of this partnership. The US military has been collaborating with 3rdiTech for over five years to build trust and capabilities, laying the groundwork for this deeper technology transfer. This marks the Space Force’s first international technology partnership of its kind, reinforcing the strategic importance of the initiative.
A Win-Win for India and the US
The Bharat Semi Fab is not just a win for India in terms of technological advancement but also a strategic success for the US. By partnering with India to develop this cutting-edge semiconductor technology, the US creates a more resilient supply chain in the critical field of national security technology. The alliance also helps to counterbalance China’s rapidly advancing semiconductor capabilities, ensuring that the Indo-Pacific region has access to trusted, homegrown semiconductor technology.
The India-US semiconductor partnership, which was first announced during Prime Minister Modi’s state visit to the US in June 2023, has since progressed rapidly. The final plans for the Bharat Semi Fab were unveiled during a bilateral meeting between President Biden and Prime Minister Modi in Delaware on September 21, 2024. The project is expected to not only transform India’s technological landscape but also strengthen bilateral ties between the two countries for years to come.