Internal markets chief Thierry Breton said the EU deal with India will strengthen the bloc’s ‘resilience in the new geopolitics’ of semiconductor supply chains.
The European Union and India have increased co-operation in the semiconductor space after signing a deal to build “robust” supply chains and foster innovation together.
In a memorandum of understanding signed today (24 November) by EU internal markets commissioner Thierry Breton and Ashwini Vaishnaw, the Indian minister for railways, communications, electronics and IT, the two jurisdictions agreed to share “experiences, best practices and information” on their respective semiconductor ecosystems.
As part of the deal, the EU and India will identify areas for collaboration in R&D among universities, businesses and research organisations, while also promoting skills, workforce development and investment in the semiconductor space.
They will also ensure a “level playing field” in the sector, including by sharing information on granted public subsidies. This will be done under the framework of an EU-India Trade and Technology Council, the second such bilateral forum for the EU.
“Chips are vital for our economies, and we are strengthening our resilience in the new geopolitics of semiconductor supply chains,” said Breton, who spearheaded the Chips Act to made Europe a semiconductor powerhouse.
“I am glad we will continue to cooperate with India, a key partner, on trade and technology issues to overcome supply chain challenges. In the longer term, our cooperation on research and skills will be essential to strengthen our resilience.”
Věra Jourová, EU vice-president for values and transparency, said of the latest partnership with India that semiconductors “power the green and digital transition”.
“They are also crucial to our economic security and the competitiveness of EU industry and its economy more broadly. Signing this agreement with India, a trusted and dynamic partner with complementary strengths, will foster innovation in this important area,” she added.
The EU approved the Chips Act in July, just two weeks after the EU parliament adopted the €43bn act in a 587 to 10 vote with 38 abstentions.
Semiconductors are used for various products in the modern era, from smartphones and cars to critical applications in healthcare, energy, defence, communications and more. The global chip demand is expected to double between 2022 and 2030.
Overall, the European Chips Act aims to strengthen manufacturing activities in the EU, stimulate the bloc’s design ecosystem and support scale-ups and innovation in this sector.
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