India’s Union Cabinet approves MoU with the European Union

India’s Union Cabinet, chaired by Prime Minister Modi, has approved the Memorandum of Understanding on semiconductors signed by India and the European Union in November 2023. Following this agreement, both governments will work together to build a robust semiconductor supply chain and further technological advancements in the chip sector.

Thierry Breton, European commissioner for the internal market, said when the MoU was first signed in 2023: “Chips are vital for our economies, and we are strengthening our resilience in the new geopolitics of semiconductor supply chains. 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.”

Following the Memorandum of Understanding, the European Union and India have agree to share experiences and necessary information on their semiconductor ecosystems; identify opportunities for collaborative R&D and innovation; promote skills, talent and workforce development in the semiconductor industry; and ensure a level playing field in the sector.