India and the United States have agreed to collaborate to explore opportunities to develop and diversify the global semiconductor ecosystem, as both countries are critical partners in ensuring that the semiconductor supply chain keeps up with the ongoing digital transformation, according to an announcement issued on Monday.

The US State Department announced a collaboration with India to explore opportunities to develop and diversify the global semiconductor ecosystem through the International Technology Security and Innovation (ITSI) Fund established by the CHIPS Act of 2022.

"This partnership will help build a more resilient, secure, and sustainable global semiconductor value chain," a State Department statement said.

According to the statement, the US expects key Indian stakeholders such as state governments, academic institutions, research centers, and private companies to participate in this analysis conducted by the India Semiconductor Mission. The insights gained from the assessment will serve as the basis for potential future joint initiatives to strengthen and develop this important sector.

The partnership will begin with a comprehensive assessment of India's current semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure requirements.

According to the State Department, the partnership with India's Semiconductor Mission, which is under the Ministry of Electronics and Information Technology, benefits both countries. It also highlights the growing potential of India's semiconductor industry. Under this agreement, the US State Department will collaborate with India's Semiconductor Mission and the Ministry of Electronics and Information Technology.