India and the European Union (EU) inked an MoU during the virtual second India-EU Trade and Technology Council (TTC) meeting, aiming to bolster semiconductor ties. This pact focuses on enhancing collaboration in the semiconductor ecosystem, enabling investments, joint ventures, and technological partnerships, including manufacturing ventures.

Aligned with India’s plan to offer $10 billion incentives for domestic chip manufacturing, the MoU emphasizes cooperation in semiconductor ecosystems, supply chains, and innovation. The TTC session assessed progress in high-performance computing, digital infrastructure, EV batteries, supply chain resilience, and FDI screening.

The TTC serves to deepen strategic engagement on trade and technology, marking the second such mechanism for the EU after the U.S. Both parties aim to leverage working groups for information exchange, best practices, and joint efforts in semiconductor research, industry skills, and subsidies.

The agreement promotes collaboration in research, development, and innovation in semiconductor technologies, encompassing advanced packaging, design, and raw materials. Additionally, it seeks to involve industry stakeholders and private sectors from both regions. The initial meeting on the semiconductor ecosystem is slated within three months of the MoU signing.