NEW DELHI, March 10 (Reuters) – India might grow to be a key provider of digital components and {hardware} for the US, U.S. Commerce Secretary Gina Raimondo mentioned on Friday, including that Washington was not in search of a “technological decoupling” from China.
Raimondo's go to to New Delhi comes amid more and more tight U.S. export restrictions on chipmaking expertise to China which Washington says are aimed toward hobbling Beijing's capacity to broaden its chip business and improve its navy capabilities.
Talking to reporters after assembly India's Commerce Minister Shri Piyush Gopal, Raimondo mentioned India was a trusted expertise accomplice that might grow to be a provider within the “complete electronics provide chain, not simply semiconductors”.
“We need to deepen our expertise relationship with India,” she mentioned after each nations signed a memorandum of understanding to cooperate within the semiconductor sector.
“I need to be additionally clear… this is not about decoupling, what it's about is conserving eyes extensive open to the truth that China is explicitly making an attempt to get entry to American expertise to make use of in its navy and we have to shield ourselves and our allies and companions from that taking place,” she added.
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China's authorities has earmarked $140 billion to spice up home chip manufacturing to beat the U.S. export curbs.
India has been in search of to draw extra funding within the chipmaking and show sector beneath a $10 billion incentive plan. Final yr, the federal government mentioned it could cowl 50% of the venture value of recent native semiconductor amenities.
Raimondo, who's main a delegation together with executives from 10 U.S. firms, mentioned India's ambitions to broaden its tech sector had been “completely aligned with the US' need and purpose to make our provide chain extra resilient”.
She additionally mentioned she would announce quite a few “substantial investments” by U.S. companies in India, with out giving any particulars.
Reporting by Shivangi Achary; writing by Miral Fahmy; modifying by Christina Fincher
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