Can India and the US’s Tech Partnership Disrupt China and Taiwan’s Hold on the Semiconductor Market?
During Prime Minister Narendra Modi’s visit, the latest tech partnership between India and the US, along with the semiconductor declarations, are expected to have the capability to diminish the chip market dominance of China and Taiwan.
Both India and the US have significant strengths in the semiconductor business. Many of the world’s largest chipmakers are based in the US, while India has a huge and growing pool of talented engineers. So, all the information released on June 22 about the partnership between the countries shows that by working together, they can build a more robust and diverse semiconductor supply chain.
While it is still too early to say how successful the Indo-US technology partnership will be in reducing the dominance of China and Taiwan in the chip sector, recent announcements suggest that the two countries are serious about working together to achieve this goal.
Impact
The establishment of Micron’s semiconductor chip testing and manufacturing facility in India is a significant step towards reducing the dominance of Chinese and Taiwanese companies in the global semiconductor market, Sanjay Gupta, President, India Electronics and Semiconductor Association (IESA) told ReturnByte.
“China and Taiwan have traditionally been key players in the semiconductor industry, but India’s collaboration with Micron marks a shift in the priorities of global companies. India’s growing presence in the semiconductor sector will help diversify the global supply chain,” Gupta said.
He added, “With Micron’s investment, India will strengthen its position as a competitive manufacturing hub that offers an alternative.”
According to him, India can attract global semiconductor giants like Micron to utilize their expertise and technologies to improve its domestic capabilities. “This will reduce dependence on Chinese and Taiwanese companies for semiconductor imports, thereby reducing their dominance. The cooperation also promotes technological innovation and research and development activities in the country. It will drive local talent growth, encourage entrepreneurship and cultivate a favorable ecosystem for domestic semiconductor industries to thrive,” Gupta said.
He also noted that the semiconductor industry was highly competitive and dynamic, saying, “Chinese and Taiwanese companies have well-established infrastructure, extensive experience and significant investments in research and development. Their dominance cannot be easily disrupted and they continue to play a key role in the global semiconductor market.
The India-US technical collaboration was not only a major announcement from an industrial perspective but also a strategic one, said Sailesh Lachu Hiranandani, chairman of SRAM & MRAM Group, which last year announced an investment of Rs 2 lakh crore in Odisha to set up a semiconductor unit.
“The US-India joint announcement marks a milestone in bilateral relations with far-reaching consequences for both countries, a strategic step to balance China’s growing dominance and influence in the Indo-Pacific region,” Hiranandani said.
He also said that the cooperation provided an opportunity for India to strengthen its position on the global stage and strengthen the strategic partnership. He also noted that the partnership paves the way for technological development, defense cooperation and economic growth, leading to increased investment, trade and technology transfer from the US to India, which can help strengthen India’s economic development and promote innovation.
“Importantly, it will also provide access to advanced defense technologies, which will enhance our defense capabilities and national security,” Hiranandani said.
Electronics and IT Minister Rajeev Chandrasekhar, while talking about the investment announcements including Micron Technology, Applied Materials and Lam Research, said they were “very significant and tectonic in the way they will accelerate the growth of India’s semiconductor ecosystem”.
“It will also accelerate India’s growth as a reliable electronics player in the electronics and semiconductor supply chain… We trust that in the coming years, the talent of our educational ecosystem, the young people who will become VLSI engineers will make India a leader in electronics and semiconductors and continue to grow and have a global presence in the digital economy innovation, IT and ITeS in segments,” Chandrasekhar said.
