The U.S. government does not want to “divorce” China, nor does it want a “technological divorce,” but Washington “would like to see India achieve its aspirations for a greater role in the electronics supply chain,” U.S. Commerce Secretary Gina Raimondo said. Friday.
On its part, the US on Friday signed a memorandum of understanding with India for cooperation in the semiconductor sector.
Semiconductor industries in both countries are beginning to assess resiliency and gaps in the supply chain network, said Raimondo, whose department oversees about $52 billion in investment in the U.S. semiconductor industry.
“I don’t have to believe it when I say that this is a consequential relationship and the US government is excited about this relationship with the Indian government … the fact that ten top US CEOs have come here and committed to doing more business in India. .. I think this is proof,” she told reporters at a press conference in New Delhi.
India, the second most populous country in the world, plays a key role in the ever-changing geopolitical relations between many powerful countries. The growing alliance of the US with India, with which it also maintains a strategic dialogue through the Quad group with Japan and Australia, is a symbol of the growing concern of US policymakers about reducing dependence on China.
But even as India and the US strengthen their technological ties, Washington does not want to reduce its dependence on China, she insisted. “We see India as a trusted technology partner and want to further deepen our technology relationship with India. But I also want to make it clear that the United States does not want to separate from China.”
“We’re trying to make sure that some of the technologies where the U.S. has an advantage and where China’s express strategy is to have those technologies and use them in Chinese military devices, those are the technologies that we’ve used through export controls to prohibit sales to China . This is how we enjoy trade with China. The vast majority of trade with China is benign products and that will and must continue.”
Closer ties with India are not about separation, but about keeping “eyes wide open to the fact that China is specifically trying to get access to American technologies for use in its military, so we need to protect ourselves and our allies and partners,” she added.
The partnership comes as India aggressively offers $10 billion in incentives to acquire manufacturing projects from international chipmakers. New Delhi has managed to attract many companies to expand their presence in India, but many industry leaders, including Intel and TSMC, have yet to make a wider play.