{"id":182147,"date":"2022-04-30T20:26:24","date_gmt":"2022-04-30T14:56:24","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=182147"},"modified":"2022-04-30T20:26:24","modified_gmt":"2022-04-30T14:56:24","slug":"placing-semicon-diplomacy-at-the-heart-of-indias-foreign-policy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/placing-semicon-diplomacy-at-the-heart-of-indias-foreign-policy\/","title":{"rendered":"Placing semicon diplomacy at the heart of India\u2019s foreign policy\u00a0"},"content":{"rendered":"\n

News<\/span><\/b>: The PM of India made a clarion call for <\/span>Aatmanirbhar Bharat<\/span><\/b>. Consequently, the government announced the <\/span>Semicon India programme<\/span><\/b> for<\/span> India\u2019s drive for self-sufficiency in semiconductors. It aims to provide $10 bn fiscal support and other non-fiscal measures for the sector.<\/span>\u00a0<\/span><\/p>\n

How is semicon diplomacy relevant to India’s foreign policy?<\/span><\/b>\u00a0<\/span><\/h5>\n

Semiconductor chips are the lifeblood of the <\/span>modern information age<\/span><\/b>. These semiconductor chips are the drivers for ICT development.<\/span>\u00a0<\/span><\/p>\n

The semiconductor is the cornerstone of all electronic products. They enable electronic products to compute and control actions.<\/span>\u00a0<\/span><\/p>\n

It can be a great example of <\/span>peacetime global cooperation. <\/span><\/b>This is because the manufacturing cycle of a semiconductor chip changes hands approx. 70 times across international borders.<\/span>\u00a0<\/span><\/p>\n

The global semiconductor market is projected to be $1.2 tn by 2030, India needs to be well-positioned to capture it.<\/span>\u00a0<\/span><\/p>\n

Placing <\/span>semicon diplomacy<\/span><\/b> at the heart of <\/span>India\u2019s foreign policy<\/span><\/b> is essential, both <\/span>strategically<\/span><\/b> and <\/span>economically<\/span><\/b>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Attaining self-sufficiency in <\/span>semiconductor manufacturing<\/span><\/b> can mean collective growth of <\/span>India\u2019s neighbourhood<\/span><\/b> in the <\/span>South Asian region<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

What are the issues in the global value chain of semiconductor products?<\/span><\/b><\/h5>\n

The <\/span>semiconductor manufacturing capacities<\/span><\/b> are concentrated in a few <\/span>geographies<\/span><\/b> like Taiwan, South Korea, East Asia and China. The <\/span>concentration of capacities<\/span><\/b> poses many challenges, leading several countries to be vulnerable to a few and prone to <\/span>supply chain disruption<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

The <\/span>Covid-19 pandemic<\/span><\/b> resulted in chip shortages. For example, automakers were hit hard. Now, the Russia-Ukraine Conflict has impacted the supply chain of the raw material resources for the semiconductor chipmakers.\u00a0<\/span>\u00a0<\/span><\/p>\n

What are the opportunities for India?<\/span><\/b>\u00a0<\/span><\/h5>\n

India has the opportunity to become an <\/span>attractive alternative destination<\/span><\/b> for semiconductor manufacturing.\u00a0<\/span>\u00a0<\/span><\/p>\n

Companies are looking to diversify their global supply chain. They are looking for alternatives to their bases in China.\u00a0<\/span>\u00a0<\/span><\/p>\n

The establishment of the value chain for semiconductors would ensure a multiplier effect on the entire Indian economy.\u00a0<\/span>\u00a0<\/span><\/p>\n

Second most <\/span>imported items<\/span><\/b> after oil and petroleum products are <\/span>electronics products<\/span><\/b>. Therefore, domestic production would be <\/span>saving forex<\/span><\/b> and reducing the <\/span>balance of payments<\/span><\/b>, especially vis a vis China.<\/span>\u00a0<\/span><\/p>\n

India can go for self-reliance in the semiconductor sector. It will also encourage growth and prosperity of all, in the spirit of <\/span>Vasudhaiva Kutumbakam<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

Way Forward<\/span><\/b>\u00a0<\/span><\/h5>\n

The way ahead is conceptualising <\/span>a semicon diplomacy action plan<\/span><\/b>. It can be done by increasing <\/span>multilateral<\/span><\/b> and <\/span>bilateral cooperation <\/span><\/b>across the <\/span>value chain of semiconductors<\/span><\/b> which includes design, manufacturing, and packaging.\u00a0<\/span>\u00a0<\/span><\/p>\n

Quad can play a very important role in semicon diplomacy. <\/span>Australia<\/span><\/b> can be an important<\/span> supplier <\/span><\/b>of<\/span> raw material resources<\/span><\/b>. The US and Japan support in the <\/span>advanced semiconductor technology <\/span><\/b>& capacity building of India.<\/span>\u00a0<\/span><\/p>\n

The semiconductor manufacturing and testing bases are <\/span>heavily concentrated<\/span><\/b> in East Asia, the <\/span>Act East policy<\/span><\/b> provides an opportunity to connect and strengthen ties with key players in the region.\u00a0<\/span>\u00a0<\/span><\/p>\n

India can promote <\/span>frequent technological exchanges<\/span><\/b> between a regional bloc like\u202fASEAN via tracks in forums like the <\/span>East Asia Summit<\/span><\/b> and the <\/span>ASEAN regional forum<\/span><\/b> will be beneficial.<\/span>\u00a0<\/span><\/p>\n

The recently announced <\/span>Semicon India programme<\/span><\/b> is a step in the right direction. <\/span><\/p>\n

India needs to harness its strengths<\/strong>, such as the strong presence of global EMS players, diaspora, world-class design ecosystem, demographic dividend, and use it as a pedestal for global partnerships and outreach.<\/span>\u00a0<\/span><\/p>\n

Source<\/strong>: The post is based on an article \u201c<\/span>Placing semicon diplomacy at the heart of India\u2019s foreign policy<\/span><\/b>\u201d published in the Indian Express<\/strong> on 30<\/strong><\/span>th<\/strong> April 2022<\/strong>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News: The PM of India made a clarion call for Aatmanirbhar Bharat. Consequently, the government announced the Semicon India programme for India\u2019s drive for self-sufficiency in semiconductors. It aims to provide $10 bn fiscal support and other non-fiscal measures for the sector.\u00a0 How is semicon diplomacy relevant to India’s foreign policy?\u00a0 Semiconductor chips are the… Continue reading Placing semicon diplomacy at the heart of India\u2019s foreign policy\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10500],"class_list":["post-182147","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/182147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=182147"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/182147\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=182147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=182147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=182147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}