India and European Union on Friday signed a Memorandum of Understanding on cooperation on the semiconductors ecosystem, which will facilitate investments, joint ventures, and technology partnership, including manufacturing facilities.
The move is in sync with India’s plan to provide incentives worth $10 billion for chip manufacturing in the country. The MoU was signed at the second India -EU Trade and Technology Council (TTC) meeting held virtually is for deepening cooperation on semiconductors ecosystem, supply chain, and innovation.
The TTC meeting also reviewed the progress achieved by the working groups of the council, particularly in the areas of high-performance computing, digital public infrastructure, EV batteries and its recycling, waste to energy, resilient supply chains, and FDI screening. The first meeting of the TTC was held in May in Brussels. India is the second country after the US with which the EU has a TTC mechanism. The role of TTC is to deepen strategic engagement on trade and technology between both partners.
The meeting on Friday was co-chaired on the Indian side by External Affairs Minister S Jaishankar, Minister of Commerce and Industry Piyush Goyal, and Minister of Electronics and Information Technology (MeiTy) Ashwini Vaishnaw. Executive Vice-President Valdis Dombrovskis and Vice-President Vera Jourova chaired the meeting from the European side. Semiconductors were included in the work program of the working group on strategic technologies at the TTC meeting on Friday. India and the EU plan to use working group for exchange of experience and best practices and enhanced collaboration in the semiconductor ecosystem, research and development, industry skills and transparency in semiconductor subsidies. Exchange of information will involve information on trade barriers, disruptions and their potential impact on semiconductor value chain and explore measures to mitigate their impact.
The MoU also provides for facilitating collaboration between Indian and EU stakeholders towards direct investments, joint venture, and technology partnership, including manufacturing facilities. Both sides will also identify areas for mutually beneficial collaboration in research, development, and innovation in semiconductor technologies, including advanced packaging technologies, design, and raw materials. As per the MoU, both sides also intend to encourage industry and stakeholder engagement with the private sector in both jurisdictions. The first meeting on the semiconductor ecosystem will be held within three months of signing of MoU.