The latest India-US tech alliance throughout Prime Minister Narendra Modi’s go to and semiconductor bulletins are believed to have the potential to cut back China and Taiwan’s dominance in the chip market.
Both India and the US have substantial strengths in the semiconductor enterprise. Many of the world’s largest chip makers are based mostly in the US, whereas India has an enormous and rising pool of gifted engineers. So, all the main points launched on June 22 in regards to the partnership between the 2 nations point out that by collaborating, they might construct a extra strong and numerous semiconductor provide chain.
Even although it’s nonetheless too early to say how profitable the India-US tech partnership can be in decreasing China and Taiwan’s dominance in the chip sector, the latest bulletins recommend that the 2 nations are critical about working collectively to realize this purpose.
The affect
The institution of Micron’s semiconductor chip testing and manufacturing plant in India represents a big step in direction of decreasing the dominance of Chinese and Taiwanese corporations in the worldwide semiconductor market, Sanjay Gupta, chairperson of India Electronics and Semiconductor Association (IESA), advised News18.
“While China and Taiwan have traditionally been key players in the semiconductor industry, India’s collaboration with Micron signifies a shift in priorities for global companies. India’s growing presence in the semiconductor sector will help diversify the global supply chain,” Gupta stated.
He added: “With Micron’s investment, India strengthens its position as a competitive manufacturing hub, offering an alternative.”
According to him, by attracting international semiconductor giants like Micron, India can leverage its experience and applied sciences to reinforce home capabilities. “This reduces reliance on Chinese and Taiwanese companies for semiconductor imports, thereby diminishing their dominance. The collaboration also fosters technological innovation as well as research and development activity in the country. It will drive the growth of local talent, encourage entrepreneurship and cultivate a conducive ecosystem for indigenous semiconductor startups to thrive,” Gupta stated.
He additionally identified that the semiconductor business was extremely aggressive and dynamic, saying: “Chinese and Taiwanese companies have a well-established infrastructure, extensive experience and significant investment in research and development. Their dominance cannot be easily disrupted, and they continue to play a crucial role in the global semiconductor market.”
India-US tech collaboration was not solely a big announcement from the business perspective but additionally strategic, stated Sailesh Lachu Hiranandani, chairman of SRAM & MRAM Group that introduced a Rs 2-lakh crore funding in Odisha final yr to arrange a semiconductor unit.
“The joint announcement made by America and India signifies a milestone in the bilateral relationship and far-reaching implications for both countries, a strategic move to counterbalance China’s growing dominance and influence in the Indo-Pacific region,” Hiranandani stated.
He additional stated the collaboration represented a possibility for India to strengthen its place on the worldwide stage and improve strategic partnership. He additionally indicated that the partnership will pave the best way for technological developments, defence cooperation and financial progress resulting in elevated funding, commerce and know-how switch from the US to India, which can assist bolster India’s financial growth and drive innovation.
“Importantly, it will also give access to advanced defence technologies, thereby enhancing our defence capabilities and national security,” Hiranandani stated.
The minister of state for electronics and IT, Rajeev Chandrasekhar whereas speaking in regards to the funding bulletins together with Micron Technology, Applied Materials and Lam Research, stated these had been “very significant and tectonic in the way they accelerate India’s semiconductor ecosystem growth”.
“It also accelerates India’s growth as an electronics trusted player in the electronics and semiconductor supply chain… We have confidence that in coming years the talent from our education ecosystem, the youth who will be coming as VLSI engineers are going to make India a leader in electronics and semiconductors in addition to continuing the growth and global presence in innovation, IT & ITeS segments of the digital economy,” Chandrasekhar stated.
