US And India Join Hands To Address Semiconductors Supply Chain Challenges

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US And India Join Hands To Address Semiconductors Supply Chain Challenges
17 Oct 2022
5 min read

News Synopsis

As the US and India work together to address supply chain issues for semiconductors, the Joe Biden administration's offer to help India increase its manufacturing capacity for semiconductors appears to be nothing more than lip service, according to the Chinese state-run publication Global Times.

During her visit to India this week, US deputy assistant secretary for South and Central Asia, Afreen Akhter, declared that they will support India in boosting its capacity for semiconductor production.

Leading a trade mission for semiconductors to India, Akhter spoke with prominent leaders there.

"lure India into a geopolitical game to exclude China from the global chip industrial chain, rather than a commitment with real investment plans to support India's chip manufacturing." according to Global Times.

The CHIPS and Science Act, which aims to give $52 billion in subsidies to chip manufacturers to build fabrication units in the US, was described in the report as an effort to create an economic chain centered on US interests  "which is unlikely to bring benefits to India."

In order to entice chip companies to invest in manufacturing in India, a number of preferential policies have been implemented. To encourage domestic manufacture, the government unveiled a 76,000 crore performance linked incentive (PLI) scheme in the semiconductor industry last year.

China experienced its largest-ever monthly decrease in chip manufacture in August as a result of Covid limitations and waning demand, while India and the US increase their local semiconductor manufacturing.

TWN Special