New Delhi, March 4, 2010 (FBC) India could become a key supplier of electronics and hardware to the United States, US Commerce Secretary Gina Raimondo said on Friday, adding that Washington does not want “technological compromise” from China.
Raimondo’s visit to New Delhi comes as the US tightens restrictions on China’s chip-making technology as Washington aims to expand Beijing’s chip industry and boost its military capabilities.
Speaking to reporters after meeting India’s Commerce Minister Shri Piyush Gopal, Raimondo said that as India’s trusted technology partner, it can be a supplier in the entire electronics supply chain, not just semiconductors.
“We want to strengthen our technology relationship with India,” she said after the two countries signed a memorandum of understanding to cooperate in the semiconductor sector.
“I also want to be clear… this is not about collusion, it’s about what it means, China is clearly trying to get American technology to use in the military and we have to protect ourselves and our allies and partners from this incident,” she added.
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The Chinese government has earmarked $140 billion to boost domestic chip production to counter US export bans.
India has been looking to attract more investment in the chip manufacturing and display sector with a $10 billion stimulus plan. Last year, the government said it would cover 50% of project costs for new domestic semiconductor facilities.
Raimondo, who is leading a delegation including executives from 10 U.S. companies, said India’s desire to expand its technology sector “aligns with the United States’ desire and goal to make our supply chain more resilient.”
She said she would announce several “significant investments” by US companies in India, without giving any details.
Reporting by Shivangi Achary; Writing by Miral Fahmy; Edited by Christina Fincher
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