India and the United States have reached a historic agreement to jointly establish the world’s first multi-material chip fabrication unit in India, which will focus on national security. This deal was signed during Prime Minister Narendra Modi’s visit to the U.S. from 21-23 September 2024. President Joe Biden and PM Modi finalized this project under the U.S.-India Initiative on Critical and Emerging Technology (iCET).
Key Details About the Chip Fabrication Plant
The new chip fabrication plant, named “Shakti,” will be located in Jewar, Uttar Pradesh, near the upcoming Jewar International Airport. The unit will focus on producing advanced semiconductor chips for use in military technologies, such as communication devices, space sensors, drones, and fighter jets. These chips will also support green energy applications and next-generation telecommunications.
The plant will be developed through a partnership between Bharat Semiconductors, 3ediTech, the U.S. Space Force, and India’s Semiconductor Mission.
Reasons Behind Setting Up First Multi-Material Chip Fabrication Unit
The chip fabrication unit is part of the broader U.S.-India effort to strengthen strategic and defense ties. India has been a major importer of semiconductors, and this plant will help reduce import dependency, potentially saving the country around ₹6000 crore annually. This project also reflects the growing collaboration between the two nations in critical technologies, defense, and industrial innovation.
Impact of First Multi-Material Chip Fabrication Unit
The establishment of the chip plant will have a significant impact at both national and international levels. For India, it represents a major step towards self-reliance in semiconductor manufacturing. Globally, this plant will play a key role in creating a secure semiconductor supply chain, benefiting not only India and the U.S. but also allied countries in the Quad and Asia-Pacific regions.
The chips produced at the facility could be exported to friendly nations, enhancing international defense cooperation. Additionally, the plant will support the production of environmentally friendly technology and advanced warfare platforms.
Aims Behind the Project
The primary aim of the new chip fabrication unit is to support national security by producing advanced chips for defense and military purposes. This project also aligns with the Semiconductor Mission of India, which aims to make the country a global hub for semiconductor manufacturing.
This agreement between India and the U.S. reflects the nations’ shared goal of building resilient, secure, and sustainable semiconductor supply chains. The project is also a part of the broader U.S.-India partnership on critical technologies under iCET, which aims to boost cooperation in strategic areas like defense, technology, and industrial research.
Comparison of Global Chip Production Capacities
| Country | Chip Production Focus | Key Partners | Applications |
| India (Jewar) | Multi-material chips (for defense) | U.S. Space Force, Bharat Semiconductors | Military technologies, green energy |
| United States | Advanced semiconductor chips | Intel, GlobalFoundries | Military, AI, data centers |
| South Korea | Memory and logic chips | Samsung, SK Hynix | Consumer electronics, AI |
| China | Mass production (consumer electronics) | SMIC, Huawei | Smartphones, AI, automotive |
First Multi-Material Chip Fabrication Key Points
- India and the U.S. are setting up the world’s first multi-material chip fabrication plant for national security.
- The plant, called “Shakti,” will be located in Jewar, Uttar Pradesh.
- It will produce chips for military applications like space sensors, drones, and fighter jets.
- This project will reduce India’s dependency on imported chips and save around ₹6000 crore annually.
- The chips will also be exported to allied countries, strengthening global defense ties.
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The plant will be located in Jewar, Uttar Pradesh, next to the Jewar International Airport.
The unit will produce advanced semiconductor chips for military purposes, including communication devices, drones, space sensors, and fighter jets.
The plant will be developed by Bharat Semiconductors, 3ediTech, the U.S. Space Force, and India’s Semiconductor Mission.
The project will reduce India’s dependency on imported chips, saving ₹6000 crore annually, and boost India’s semiconductor manufacturing capabilities.
The chips produced at the plant will be exported to friendly nations, strengthening defense ties between India, the U.S., and other allied countries.