India is set to establish its first-ever national security semiconductor fabrication plant in Kolkata, in partnership with the US, marking a major step in joint defence and technology cooperation. This facility will produce chips for military hardware and critical telecommunications infrastructure in both countries.

The project, a milestone in India-US relations, was officially unveiled after discussions between Prime Minister Narendra Modi and US President Joe Biden in Wilmington on Sunday. The two leaders commended joint efforts to strengthen secure and resilient semiconductor supply chains through GlobalFoundries’ (GF) new GF Kolkata Power Centre.

However, a credit war over the ambitious project has already begun.

West Bengal Chief Minister Mamata Banerjee lauded the announcement and assured all support. Banerjee, however, added that the declaration regarding the setting up of a Global Capability Centre in the state has a history of relentless promotion by the West Bengal government.

“I am fortunate enough to share with you all the contribution of our West Bengal government in the historic international investment decision for Kolkata, as kindly announced by Hon’ble President of the USA with our Hon’ble PM Modi yesterday,” Banerjee wrote on X.

“The background story of our long and arduous exercises which lie behind the great news about a major American investment in our State in the semiconductor sector is truly worth sharing. Since early last year, the State IT Dept. and our PSU Webel approached leading semiconductor industries as many chip-designing & packaging StartUps had relocated to various Webel IT Parks after the Covid pandemic,” Banerjee shared, highlighting the role of her government in the state.

Banerjee also pointed out that GlobalFoundries, Synopsis, Micron and a few other leading international semiconductor companies held a number of technology symposiums in West Bengal.

“They visited our units and offices to discuss emerging technologies & investment potential. This year, the State Govt.-sponsored Global VLSI Conference 2024, held in Kolkata, witnessed participation of all leading giants from the Semiconductor industries.”

“Hence, continuous deliberations coupled with successful promotion of the State’s capacity have thus led to Global Foundries’ recent proposal to set up a Global Capability Centre in Kolkata. I assure all support to the emerging investment in this frontier sector. Let West Bengal be the true destination for knowledge-based Industries.”

Amit Malviya, BJP’s IT cell head and co-incharge of West Bengal, said, “We hope Mamata Banerjee doesn’t ruin this opportunity, like everything else she has touched.”

Malviya added on X, “Mamata Banerjee must ensure that the project is not held hostage to the extortionists in her Govt and party. West Bengal can’t afford to lose, again.”

The project will receive backing from the India Semiconductor Mission and form a strategic technology alliance between Bharat Semi, 3rdiTech, and the US Space Force. According to sources familiar with the matter, this facility will not only be India’s first but also one of the world’s first multi-material fabs dedicated to national security.

For the first time, the US military has agreed to collaborate with India on such high-value technologies, marking a watershed moment in bilateral relations. Sources compare the significance of this partnership to that of the historic civil nuclear deal.