• Tuesday, February 07, 2023


India senses opportunity as China’s semiconductor dreams face US challenge: ‘Modi govt seizing the moment’

Indian prime minister Narendra Modi with US president Joe Biden. (ANI Photo/PIB)

By: Shubham Ghosh

As a trade war escalates between the US and China and restrictions imposed by Washington obstructing Beijing’s ambition to become a semiconductor superpower, India could have an opportunity to capitalise on the situation and realise its own global aspiration to emerge as a chip-manufacturing hub, sector experts have predicted.

According to a report by ThePrint, an Indian news website which spoke to analysts, the Narendra Modi government has been trying to pitch New Delhi as a place where semiconductor (chip) companies can invest so that they do not find themselves caught between the growing geopolitical and trade tensions between the US and China.

The ongoing Covid-19 wave in China is also another reason that could give India an opportunity.

“India is fully aware of the chip war and China’s slipping position, accelerated by the devastating Covid wave in that country,” Kanchan Gupta, a senior adviser in India’s ministry of information and broadcasting told ThePrint.

“The Modi government is working towards seizing the moment. Work has already begun and will gather pace as companies increasingly find India a preferred location for chip manufacturing to ensure disruption free supply lines,” he was quoted as saying.

“The global semiconductor market is around $600 billion and will become a trillion-dollar industry by 2030,” Parv Sharma, a senior analyst at tech market research firm Counterpoint Research, told the news outlet.

As per a research conducted by Counterpoint and India Electronics & Semiconductor Association, a domestic chip industry body, the semiconductor component market in India will see revenues going up to $300 billion during 2021-2026.

Private sector players are optimistic about India’s semiconductor manufacturing prospects in the current geopolitical situation but they also feel that there are numerous challenges to overcome, including lack of infrastructure, skill gaps, etc., the report added.

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