The agreement was announced following a meeting between Prime Minister Narendra Modi and US President Joe Biden in Delaware
India is set to establish its first national security-focused semiconductor fabrication plant, called *Shakti*, which will begin operations in 2025. The facility will produce advanced chips for the defense forces of both India and the United States, as well as allied militaries, including those of the United Kingdom. The plant’s construction comes as part of a joint technology partnership between India and the US, supported by the India Semiconductor Mission.
The agreement was announced following a meeting between Prime Minister Narendra Modi and US President Joe Biden in Delaware. The joint factsheet from the meeting highlighted the significance of the deal, noting that both leaders “hailed a watershed arrangement to establish a new semiconductor fabrication plant focused on advanced sensing, communication, and power electronics for national security, next-generation telecommunications, and green energy applications.”
The fab, to be developed by Indian start-up 3rdiTech in collaboration with US defense firm General Atomics, will manufacture infrared, gallium nitride, and silicon carbide semiconductors. These components are essential for night vision, missile seekers, space sensors, and military communication systems. The plant will be instrumental in advancing India’s semiconductor manufacturing capacity, which has so far been more focused on design than fabrication.
At a press briefing, Foreign Secretary Vikram Misri underlined the significance of the announcement, stating that 3rdiTech, led by entrepreneurs Vinayak Dalmia and Vrinda Kapoor, has been working closely with both Indian and US entities. Misri said, “This shows we are breaking into the fabrication part of it, and with the right support, right incentives, and right access to technology, Indian startups can actually make a global mark.”
The collaboration between 3rdiTech and the US Space Force is part of a broader strategy under the Initiative on Critical and Emerging Technologies (iCET), which was launched in January 2023. During Modi’s visit to the US in June 2023, a key agreement was signed involving 3rdiTech, the Indian start-up 114 AI, and the US Space Force to co-develop components using cutting-edge AI and semiconductor technologies.
The Shakti fab will employ around 700 people and aims to produce 50,000 semiconductor units annually in its initial phase. The chips manufactured at the facility will have diverse applications, from military communication and radar systems to electric vehicles and renewable energy sectors. The advanced sensing infrared chips will be used in drones, satellite communication, and weapon sights, while power electronic chips will be used in fighter jets, electric vehicles, and high-altitude satellites.
In addition to the semiconductor fab, the companies involved will invest in a knowledge center called *Saraswati* and a design hub named *Durga*. The centers will help nurture local talent by training hundreds of engineers annually, further strengthening India’s position in the global semiconductor ecosystem.
Experts believe this development could be a game-changer for India’s semiconductor sector, positioning the country as a key player in the global supply chain. Konark Bhandari of Carnegie India noted the importance of the compound semiconductors being produced at the fab, stating that materials like silicon carbide (SiC) and gallium nitride (GaN) are particularly suited for high-power electronics, which are crucial for renewable energy and defense applications.
Bhandari emphasized that trusted collaborations with international partners will be essential for India to cement its place in the semiconductor industry, adding that the project is an important step toward securing resilient and sustainable chip supply chains.
In addition to the Shakti fab, the factsheet also mentioned GlobalFoundries’ creation of the GF Kolkata Power Center, aimed at enhancing India’s research and development capabilities in chip manufacturing. The center will contribute to advances in zero-emission and connected vehicles, AI, and data centers.
This agreement marks a significant milestone in India’s journey toward becoming a global semiconductor hub and demonstrates the growing technological partnership between India and the US.
