On Thursday while traveling through India, US Commerce Secretary Gina Raimondo revealed that the United States and India will sign a memorandum of understanding on the production of semiconductor chips.

Raimondo said both sides will map out the supply chain for semiconductors, and look for opportunities to join together to exploit opportunities for joint ventures and technology partnerships. On Friday, the commerce secretary is scheduled to meet India’s trade minister.

Ahead of the meeting, the secretary told reporters, “We would like to see India achieve its aspirations to play a larger role [in the electronics supply chain].”

In an interview with CNBC last month, Raimondo said that the US was looking at collaborating with India on specific manufacturing jobs in an effort to boost competition with China.

The United States and China have been engaging in an increasingly aggressive competition for domination of key technology sectors, especially around semiconductors. Washington has tightened its own export controls and made deals with allies to limit Chinese access to key technologies which could advance China’s technological programs.

Beijing has repeatedly attacked the United States over the restrictions, arguing they are a violation of free trade rules, and are disrupting global supply chains.

This week, reports indicated the Netherlands, home of semiconductor-tech-giant AMSL, has agreed to restrict the export of semiconductor technologies to China, after pressure from the US to join its export restrictions.

Japan will reportedly issue an announcement soon on its updated policies regarding technology exports to China as well, which are widely expected to hew to Washington’s demands.

Verified by MonsterInsights