New Delhi, April 13 (KNN) The Semiconductor Industry Association (SIA), the trade association representing the US semiconductor industry, has signed a Memorandum of Understanding (MoU) with the India Electronics and Semiconductor Association (IESA), the trade group representing India’s semiconductor and electronics systems design and manufacturing industry. 

Under this MoU, the two will cooperate to identify potential opportunities between the two countries in the semiconductor sector.

Under the MoU, both associations will assist each other as the main counterpart organization on semiconductor-related matters within India and the United States and will co-organise meetings between member companies to promote cooperation on issues of mutual interest. 

Headquartered in Washington D.C, SIA represents 99% of the US semiconductor industry by revenue and nearly two-thirds of non-US chip firms, while IESA is the premier Indian trade body for the development of the Indian semiconductor and Electronics System Design and Manufacturing (ESDM) ecosystem. 

The MoU is significant in the backdrop of the announcement by The Indian Ministry of Electronics and Information Technology last week to form a 17-member committee to steer India’s semiconductor mission to enable the building of a resilient supply chain, promote investments and ways of financing the semiconductor sector. 

As part of the ‘Make in India’ initiative, India has also recently announced the ‘India Semiconductor Mission’ (ISM) with an aim to build a semiconductor and display ecosystem to enable India’s emergence as a global hub for electronics manufacturing and design. 

Benefits in the short and long term While the global automotive industry becomes increasingly dependent on semiconductors due to the shift to electric and connected mobility, the pandemic-led chip shortage has drastically increased waiting periods for vehicles big or small. 

However, considering that the semiconductor market today stands at USD 25 billion in India and is expected to grow to USD 100 billion by 2025. (KNN Bureau)