India and the United States on Friday signed a memorandum of understanding (MoU) that will pave the way for creating a semiconductor sub-committee under the Commercial Dialogue between the U.S. Department of Commerce and India’s Ministry of Electronics and Information Technology (MeitY) and the Ministry of Commerce.

“One of the major outcomes of the Commercial Dialogue was the memorandum of understanding on establishing semiconductor supply chain and innovation partnership,” announced Minister of Commerce and Industry Piyush Goyal. News about the MoU was shared by visiting U.S. Commerce Secretary Gina Raimondo on Thursday.

Mr. Goyal said the key features of the Commercial Dialogue included creating “reliable supply chains, diversifying and friend-shoring [sourcing of material from countries with similar social and political values], facilitating climate and clean technology cooperation, inclusive digital growth, talent development, post-pandemic economic recovery, and a focus on cooperation”.

Mr. Goyal and Ms. Raimondo welcomed the recent launch of the U.S.-India initiative of Critical and Emerging Technology (iCET) that will broaden “strategic technology partnership”.

A joint statement issued after the event declared, “The Minister and the Secretary charged the semiconductor sub-committee with convening its first engagement in advance of any Commercial Dialogue mid-year review and reviewing recommendations from the joint industry-led task force launched in connection with the iCET.”

According to the statement, Ms. Raimondo welcomed “India’s active partnership in the Indo-Pacific Economic Framework for Prosperity [IPEF]”. “The Minister and the Secretary noted that deepening economic engagement among IPEF partner countries is crucial for continued inclusive growth, peace and prosperity in the Indo-Pacific region,” it said.