India-US Tech Alliance: Will Major Semiconductor Deals Challenge China-Taiwan Dominance in Chip Market? – News18

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 within the chip market.

Both India and the US have substantial strengths within the semiconductor enterprise. Many of the world’s largest chip makers are primarily based within the US, whereas India has a large and rising pool of proficient engineers. So, all the small print launched on June 22 concerning 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 will likely be in lowering China and Taiwan’s dominance within the chip sector, the current bulletins recommend that the 2 nations are critical about working collectively to realize this objective.

The affect

The institution of Micron’s semiconductor chip testing and manufacturing plant in India represents a big step in the direction of lowering the dominance of Chinese and Taiwanese firms within the world 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 world 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 trade 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 trade perspective but additionally strategic, stated Sailesh Lachu Hiranandani, chairman of SRAM & MRAM Group that introduced a Rs 2-lakh crore funding in Odisha final 12 months 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 expertise switch from the US to India, which may help bolster India’s financial improvement 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 concerning the funding bulletins together with Micron Technology, Applied Materials and Lam Research, stated these have 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.