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The View | Why India’s push for semiconductor self-reliance is about more than China
- While the Quad’s move to secure semiconductor supply chains is welcome, India’s focus is less on geopolitics and more on its domestic economy
- The transformation to a digital economy will make chips essential, increasing the need for India to secure a home-grown supply
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Indian Prime Minister Narendra Modi had a busy schedule at the Quad summit in Washington last month, meeting heads of state, corporations and investors. Interestingly, his meeting with leaders of the semiconductor industry stands out for multiple reasons.
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For starters, the meeting came amid a looming chip crisis in India. Since the beginning of 2021, the nation has faced an acute semiconductor shortage, affecting automobile plants across the country. By July, the Ministry of External Affairs was calling its diplomats in Japan, Taiwan, the United States and Germany to secure semiconductor chips for the ailing industry.
However, given the worldwide chip shortages, supply is not going to meet demand any time soon. This could affect the upcoming holiday season sales of laptops, smart televisions and other electronic appliances.
The Quad summit has been described as an anti-China coalition that convenes to coordinate efforts against Beijing’s actions across different spheres, including trade, technology and maritime security. Securing semiconductor supply chains and examining their vulnerabilities is one such endeavour of the Quad, while simultaneously analysing the role an autocratic state could play with such technology.
However, for Modi and India, the discussion on semiconductor chips is much larger than the perceived China threat. It is about realising Aatmanirbhar Bharat – making India a self-reliant nation.
As the bricks-and-mortar Indian economy transforms into a digital one, with every facet of the economy becoming reliant on advanced technologies to run day-to-day operations, semiconductors are becoming ubiquitous. As a consequence, they are vital for the success and, over time, even survival of the Indian economy.
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