Wednesday, November 13

Govt raises incentive for chip makers in India, China-India chip war Getting Started

The US deputy assistant secretary, South and Central Asia, Afreen Akhter, is leading a trade mission of semiconductors industry to India and has had meetings with India’s top government officials. The US intends to support India overcome challenges in the semiconductor supply chain and boost its local semiconductor manufacturing capacity. The US publicly seeking to strengthen its partnerships with “like-minded countries” like India and Taiwan. In a related context, in October, the US Department of Commerce implemented new export controls on advanced computing and semiconductors sold to China.

Biden administration announced new restrictions on American companies selling advanced semiconductors to China, including restrictions on U.S. citizens and residents working for chip plants in China. The impact on our America’s most dangerous opponent since the end of the Cold War, was almost instantaneous. According to Bloomberg, Americans working in Chinese plants are already leaving. If ever there was a strategy to stop a high-tech rival in its tracks, this was it.

India Semiconductor Mission is likely to start approving proposals to set up electronic chip and display manufacturing plants in the country in the next 30-60 days / over the next couple of months, as per Minister of State for Electronics and IT Rajeev Chandrasekhar’s comments during a virtual address at the IESA Vision Summit held on October 12, 2022.

The Ministry of Electronics and IT has plans to spend US$1.25-US$1.30 billion to modernize and upgrade its semiconductor laboratory (SCL) in Mohali. This spending is also targeted at strengthening intellectual property rights in India’s semiconductor sector.

Now Biden is using it to prevent even allied countries like South Korea from selling advanced chips to Chinese firms or organizations engaged in AI and supercomputing activities.

 

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