{"id":250187,"date":"2023-06-30T20:09:02","date_gmt":"2023-06-30T14:39:02","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=250187"},"modified":"2023-08-31T15:02:33","modified_gmt":"2023-08-31T09:32:33","slug":"india-and-the-us-china-chips-war","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-and-the-us-china-chips-war\/","title":{"rendered":"India and the US-China chips war"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cIndia and the US-China chips war<\/strong>\u201d published<\/strong> in The Indian Express <\/strong>on\u00a030th<\/sup> June 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 2 \u2013 International Relations \u2013 Effect of Policies & Politics of Developed & Developing Countries on India’s Interests<\/strong><\/p>\n

Relevance: <\/strong>concerns with the semiconductor industry<\/strong><\/p>\n

News<\/strong>: The article explains about the concerns associated with the semiconductor industry.<\/p>\n

What are the geopolitical issues involved with the semiconductors?<\/strong><\/h2>\n

Read Here:<\/strong> Highlight the reasons behind the China-Taiwan stand-off. What lessons can India take from it?<\/strong><\/a> and <\/strong>Taiwan matters more than we\u2019d like to tell ourselves<\/strong><\/a><\/p>\n

How is the US trying to control the dominance of China and increase its dominance in the semiconductor industry?<\/strong><\/h2>\n

The US has \u2013 1)<\/strong> denied semiconductor technology to China to prevent it from gaining high tech dominance over the world, and 2)<\/strong> pumped up its own domestic capacity for making chips.<\/p>\n

During the Trump Administration,<\/strong> Chinese telecom giant Huawei and its several ancillaries were deemed as a threat to US national security, leading to restrictions on their access to chips from US companies.<\/p>\n

The Biden Administration maintained<\/strong> restrictions and introduced its own measure, which cut the world\u2019s largest manufacturer of 5G phones and other Chinese companies from accessing semiconductors made using American tools and software.<\/p>\n

The US has also collaborated with key partners to limit China’s access to chip technology.<\/p>\n

According to the data,<\/strong> China’s chip imports from Japan, South Korea, and Taiwan (members of the US-led “Chip 4 Alliance”) have declined by 20% in the first five months of 2023.<\/p>\n

The US also passed the <\/strong>CHIPS and Science Act<\/strong><\/a>,<\/strong> which allocated $280 billion in new funding for domestic semiconductor research and manufacturing.<\/p>\n

The US has moved towards semiconductor friendshoring in the Quad<\/strong>, where the members committed themselves to building \u201cresilient, diverse and secure supply chains of critical and emerging technologies\u201d.<\/p>\n

How is the US and India partnering in the field of semiconductors?<\/strong><\/p>\n

Both nations have announced the US-India Initiative on Critical and Emerging Technologies (iCET)<\/strong><\/a><\/p>\n

The two countries have also agreed to strengthen bilateral collaboration on<\/strong> resilient supply chains, support the development of a semiconductor design, manufacturing, and fabrication ecosystem in India, etc.<\/p>\n

An MoU was signed between the two nations on <\/strong>Semiconductor Supply Chain and Innovation Partnership to promote commercial opportunities, research, talent, and skill development.<\/p>\n

As part of these developments, Micron Technology, a leading US semiconductor firm, announced a proposed investment<\/strong> of up to $825 million to build a facility in India, with the Indian government combined investment value to $2.75 billion.<\/p>\n

What are the challenges with India in manufacturing chips?<\/strong><\/h2>\n

Currently, India lacks the capability to provide 24×7 power and consistent water supply, essential for chip making industry. There is also a lack of skilled workforce.<\/strong><\/p>\n

The Indian government has also shown reluctance in pursuing a free trade agreement and a bilateral investment agreement with Taiwan<\/strong>, which is hindering to attract investments from TSMC, the world\u2019s biggest chip maker.<\/p>\n

Hence, the absence of a complete “chip ecosystem” is one of the reasons why major international chip makers have not yet shown interest in establishing operations in India, despite the government’s willingness to promote the industry.<\/p>\n

Must Read: <\/strong>India\u2019s semiconductor mission might need a compass<\/strong><\/a> and <\/strong>India\u2019s push for semiconductors<\/strong><\/a><\/p>\n

What can be the way ahead for India?<\/strong><\/h2>\n

It could take India 10-20 years to establish itself as a serious player in the semiconductor industry.\u00a0However, India has positioned itself in the global chip competition by forging a technology partnership with the US to a new level.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cIndia and the US-China chips war\u201d published in The Indian Express on\u00a030th June 2023. Syllabus: GS 2 \u2013 International Relations \u2013 Effect of Policies & Politics of Developed & Developing Countries on India’s Interests Relevance: concerns with the semiconductor industry News: The article explains about the concerns associated… Continue reading India and the US-China chips war<\/span><\/a><\/p>\n","protected":false},"author":10320,"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":[212,10500,239,238],"class_list":["post-250187","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-indian-express","tag-international-relations","tag-ir","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250187","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=250187"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250187\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=250187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=250187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=250187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}