Chip Manufacturing: America, China will help India in chip manufacturing, said this big thing

Photo:India TV America will help India in chip manufacturing, China upset


  • Secretary Afreen Akhtar offered to help
  • $52 billion subsidy for chip makers
  • India working on new policies for chip companies

Chip Manufacturing: America has talked about helping India in chip manufacturing. This has angered China. Chinese state-run publication Global Times said it would be just a sham if the US and India join hands to solve semiconductors supply chain challenges.

Secretary Afreen Akhtar offered to help

Afreen Akhtar, US Deputy Assistant Secretary of State for South and Central Asia, said during her visit to India this week that they would help India increase its semiconductor manufacturing capacity. Akhtar led the semiconductor business mission to India and met top government officials in the capital.

According to the Global Times, the announcement is designed to entice China into a geopolitical game to exclude China from the global chip industrial chain, rather than a commitment with genuine investment plans to support India’s chip manufacturing.

$52 billion subsidy

The report noted the Chip and Science Act, which aims to provide $52 billion in subsidies for chip makers to prepare manufacturing plants in the US. An attempt to build an industrial chain centered on US interests is unlikely to benefit India.

India working on new policies for chip companies

India has introduced a series of preferential policies to attract chip companies to invest in production in the country. Last year, the government announced a Rs 76,000 crore Performance Linked Incentive (PLI) scheme in the semiconductor sector to boost local manufacturing.

As India and the US doubled down on domestic semiconductor manufacturing. China saw its biggest monthly decline in chip manufacturing in August, driven by Covid restrictions and weak demand.

Partnership with Vedanta and Foxconn

This was also the second consecutive month of decline in chip manufacturing. Production declined 16.6 per cent to 27.2 billion units in July. Meanwhile, the Gujarat government has partnered with Vedanta and Foxconn to invest Rs 1.54 lakh crore to achieve self-reliance in semiconductor manufacturing.

Potential to reach $300 billion in revenue

According to the India Electronics and Semiconductor Association (IESA) and Counterpoint Research report, India’s semiconductor parts market is expected to reach $300 billion in cumulative revenue by 2026 due to ‘Make in India’ and Production Linked Incentive (PLI) schemes. Will promote local sourcing of semi-parts in the coming years.

India is a chip powerhouse

The report further said that as India seeks to become a chip powerhouse, it should not “take the bait placed by US diplomats in the hope that the US will provide it with vital resources”.

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