Exclusive | Zero Tariff Help India to Increase Competitiveness in Chip Making: US Semiconductor Body

India says that if they want to be a key player in the global supply chain, they should consider zero tariffs in semiconductor manufacturing John Neffer, President and CEO of the American Semiconductor Industry Association.

In an exclusive chat with CNBC-TV18, Neuffer is crucial that India has lower tariffs and more subsidized trade policies while it takes the right track in expanding its chip manufacturing footprint. I emphasized that there was. “The US has already received zero tariff treatment from chip supply chain partners around the world, not from India,” he said. He added that more investment in people with skills, not just design, but actual chip manufacturing, will pay off in the long term.

The American Semiconductor Industry Association accounts for 99% of American semiconductor companies and two-thirds of semiconductor companies around the world. Neuffer said India must take a bite of apples to show the world that it will become a reliable long-term partner in semiconductor manufacturing during a time when it will strengthen competition in Southeast Asia’s chip production.

Also Read | Exclusive: Challenge India to stop buying Russian oil, says US Republican rich McCormick

The SIA has expressed concern about the Trump administration’s plan to impose higher tariffs on Taiwan-made semiconductors. Trump has proposed to impose a 100% tariff on semiconductor imports from Taiwan. Neuffer said that if such policies were implemented it would be problematic and cause major confusion.

“()The US is very dependent on the global semiconductor supply chain and requires components as cheaply as possible. Tariffs will increase the costs of semiconductor fabrics and manufacturing in the US,” he said. . The US continues to dominate global semiconductor manufacturing with a market share of over 50%.

The Trump administration is scrutinizing contracts distributed by the Biden administration under the Chips Act. It says it already has a commitment to $50 trillion tuning in US chip manufacturing. “By 2032, the US would triple the production of the world’s most advanced chips, or 30% of the world’s most advanced chips will be made by the US by 2032,” he added. .

According to SIA, the global semiconductor industry has seen strong growth of 20% in 2024, with growth expected to exceed 11% in 2025.

Also read: “China has tricked the path to the top, I hope India has a better relationship with us.”