India and the United States Join Forces to Establish Semiconductor Fabrication Unit
The US military has partnered with India to establish the world’s first multi-chip fabrication unit aimed at improving national security. In a significant move, Hon’ble Prime Minister, Narendra Modi, Government of India, and Joe Biden, President, Federal Government of the United States, have signed an agreement to develop a semiconductor plant that will produce chips for advanced warfare technologies, including communications and power electronics.
The new facility will be in Jewar, Uttar Pradesh, adjacent to the upcoming Jewar Airport. Currently, India spends over US$ 1 billion annually on semiconductor imports for national security. This initiative is expected to reduce imports by approximately INR 6,000 crore, facilitating technology transfer and local production.
The chip fabrication unit, likely to be named Shakti, will house a testing center, a design center, and two fabrication units focused on high-volume manufacturing for military applications such as drones, missile seekers, fighter jets, radars and jammers, and night vision devices. The project is backed by the United States Space Force (USSF) and Indian semiconductor firms: Bharath Semiconductors and 3rdiTech Inc.
Both nations aim to strengthen their semiconductor supply chain and support exports to the Quad Nations—an informal strategic forum comprising the US, Australia, India, and Japan—and beyond. During an address in New York, Modi expressed confidence that ‘Made-in-India’ chips will soon reach the US market, marking a new era in technological collaboration.