India, EU sign semiconductor pact to help build a robust supply chain

External Affairs Minister S. Jaishankar with Union Railway Minister Ashwini Vaishnav, Union Minister of Commerce and Industry Piyush Goyal and others co-chair the India-EU Trade & Technology Council (TTC) with European Commission Executive Vice President Valdis Dombrovskis and European Commission Vice President in charge of Values and Transparency Vera Jourova via video conferencing.
| Photo Credit: ANI

India and the European Union on Friday signed a Memorandum of Understanding on semiconductors that will help in building a “robust supply chain” and support innovation. The MoU was sealed during a “stock-taking call” between leaders of the EU-India Trade and Technology Council (TTC). The EU announced that the agreement will lead to sharing information on “granted public subsidies”.

Under this MoU, India and the EU are expected to “share experiences, best practices and information on our respective semiconductors ecosystems; identify areas of collaboration in research, development and innovation among universities, research organisations and businesses,” a statement from the EU has announced. 

During the stock-taking call, the EU was represented by the TTC’s Executive Vice President Valdis Dombrovskis and Vice President Vera Jourova. From the Indian side the team was led by External Affairs Minister S. Jaishankar and Minister for Railways, Communications, Electronics and Information Technology Ashwini Vaishnaw and Commerce and Industry Minister Piyush Goyal. 

Strategic commodity

The semiconductors that drive the digital world have emerged as a strategic commodity, especially in the post-COVID period when diversifying away from China-dominant supply chains have gathered steam, especially in the Indo-Pacific arc. Friday’s agreement is expected to help India align more with EU and the U.S. on the future of the semiconductor industry. 

The agreement is also expected to foster skills, “talent and workforce development for the semiconductor industry and facilitate collaboration via the organisation of workshops, partnerships and the promotion of direct investments.” 

The agreement will “ensure a level playing field in the sector, including by sharing information on granted public subsidies,” the EU has said. The Trade and Technology Council is expected to meet in India in early 2024, the EU has informed in a statement.