A Commercial Dialogue meeting was held in New Delhi on Friday under the joint chairmanship of Indian Commerce Minister Piyush Goyal and his US counterpart, Gina Raimondo.
"Towards that end [promoting cooperation in the semiconductor sector], the Minister and the Secretary welcomed the signing of a Memorandum of Understanding establishing a Semiconductor Sub-committee under the Commercial Dialogue, led by the Department of Commerce for the U.S. side and the Ministry of Electronics and Information Technology (MeitY) and Ministry of Commerce and Industry for the Indian side," a joint statement of the India-US Commercial Dialogue read.
The creation of the subcommittee will allow the US and Indian semiconductor industries to develop stronger connections, complementary ecosystems and a more diverse supply chain, the statement added.
The first subcommittee meeting is expected to take place before the end of 2023.
In addition, the two sides intend to continue dealing with cross border data flows and other issues, including within the framework of relevant multilateral forums, the joint statement read.
The global chips shortage, linked to the COVID-19 pandemic, as well as sanctions and the rising tensions around Taiwan, which accounts for more than 60% of the global semiconductors production, has hit a number of industries around the world, including the automotive, electronics and energy sectors.