India-EU Strategic Cooperation in AI and Semiconductors

Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Context and Strategic Framework

  • India and the EU concluded the FTA alongside a Comprehensive Strategic Agenda for 2030.
  • Agreement operationalises joint R&D in advanced semiconductors and human-centric artificial intelligence systems.
  • Formal linkage created between the European AI Office and India’s National AI Mission.
  • Objective focuses on strategic autonomy in critical technologies using shared data and research infrastructure.

Three Diplomatic Phases of Technology Cooperation

  • Phase One: Roadmap to 2025 limited cooperation to cybersecurity, 5G, and data protection issues.
  • Phase Two: 2022 Trade and Technology Council established Working Group on Strategic Technologies.
  • Phase Three: 2023 Semiconductor MoU evolved from supply chain resilience to technology co-creation focus.

Semiconductor Strategy and Heterogeneous Integration

  • FTA prioritises heterogeneous integration, combining logic, memory, and sensors into single chip packages.
  • Strategy avoids dependence on capital-intensive 2–3 nanometre fabrication facilities.
  • Advanced packaging enhances AI accelerator performance through memory-processor proximity.
  • Agenda links semiconductor production to AI-focused design and prototyping vertical markets.
  • India contributes around 20% of global chip design talent.
  • EU provides research infrastructure like IMEC Belgium and Fraunhofer Germany.

Operational Mechanism: Blue Valleys

  • Blue Valleys align Indian manufacturing standards with EU Single Market technical regulations.
  • Enables direct integration of Indian components into European supply chains without re-certification.

Artificial Intelligence Regulatory Cooperation

  • Creates a “common market” for AI data and regulatory alignment.
  • European AI Office interacts directly with IndiaAI Safety Institute for technical coordination.
  • Joint development of testing and evaluation benchmarks for AI safety and hallucination risks.
  • Potential acceptance of mutual AI safety certification systems.

Financial and Innovation Instruments

  • Proposal to associate India with Horizon Europe’s €95.5 billion research funding framework.
  • Enables Indian entities to lead consortia and access EU research grants directly.
  • European Innovation Council partners with Start-up India for patient capital in high-risk technologies.
  • Funding corridor supports quantum computing and advanced semiconductor architecture ventures.

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