“This agreement marks an important step in the development of the semiconductor ecosystem in India,” said Pareek Jain, CEO of Pareek Consulting. “The US is the largest end market for semiconductors and many leading semiconductor companies are based in the US. Almost all US semiconductor companies have R&D and design centres in India. Several companies, including Micron, have also started manufacturing in India.”
Akshat Vaid, partner at Everest Group, said the US-India partnership is a step towards diversifying the global semiconductor supply chain in the long term. “Currently, the semiconductor industry is highly concentrated in a few key locations such as Taiwan and South Korea. China is also starting to increase its presence, despite facing many regulatory hurdles.”
Critical global supply chains at risk
Amid global digital transformation, semiconductors have emerged as a foundation for industries ranging from automotive to healthcare. The pandemic has exposed vulnerabilities in the semiconductor supply chain, causing a global shortage and disrupting every industry.
