Rajeev Chandrasekhar, the Minister of State for Electronics and IT in India, has assured that China’s decision to impose export controls on gallium and germanium, critical rare elements used in semiconductor manufacturing, will not impact India. In an exclusive interview with Business Today, Chandrasekhar emphasized that India has implemented measures to prevent any abuse of supply chains and maintain uninterrupted access to these materials.
Chandrasekhar highlighted the significance of the India-US Initiative on Critical and Emerging Technology (iCET) in ensuring the smooth flow of critical materials. He stated that iCET, which covers materials, aims to establish trusted global supply chains and is an integral part of India’s efforts to become a semiconductor and electronics manufacturing nation. Under the leadership of Prime Minister Narendra Modi, India’s partnerships with the United States and other like-minded countries are set to shape the future of technology and global supply chains.
The iCET was announced by President Joe Biden and Prime Minister Narendra Modi in May of the previous year as a means to expand strategic technology partnership. During the inaugural meeting of iCET held in Washington, DC, in January, both countries discussed opportunities for cooperation and identified biotechnology, advanced materials, and rare earth processing technology as areas for future collaboration. The focus of iCET is to build a resilient semiconductor supply chain domestically, fostering bilateral collaboration and supporting the development of semiconductor design, manufacturing, and fabrication capabilities in India.
In March, the United States signed a Memorandum of Understanding (MoU) on Semiconductor Supply Chain and Innovation Partnership with India. The MoU, signed between US Secretary of Commerce Gina M. Raimondo and India’s Union Commerce and Industry Minister Piyush Goyal during the India-USA Commercial Dialogue in Delhi, aims to establish a collaborative mechanism between the two nations to enhance semiconductor supply chain resiliency and diversification.
Eswara Rao Nandam, the Founding President of Polymatech, a Tamil Nadu-based company specializing in the manufacture of opto-semiconductors used in various applications, expressed optimism about India’s potential as a destination for companies seeking alternative supply chains. Nandam suggested that if the Indian administration maintains a strategy of neutrality similar to the approach taken during the conflict in Ukraine, many companies may choose to shift their operations to India. Polymatech currently manufactures opto-semiconductors for lighting, medical, and food sanitization purposes, as well as memory modules in Kancheepuram, Tamil Nadu.
India’s confidence in navigating the impact of China’s export controls on gallium and germanium stems from its proactive approach to building resilient supply chains and strategic partnerships. The India-US Initiative on Critical and Emerging Technology (iCET) and the recent MoU on Semiconductor Supply Chain and Innovation Partnership with the United States demonstrate India’s commitment to becoming a preferred global destination for semiconductor manufacturing. By leveraging its skilled workforce, complementary strengths, and favorable investment climate, India aims to attract companies seeking alternative supply chains and position itself as a reliable and technologically advanced hub in the semiconductor industry. These efforts align with Prime Minister Modi’s vision of shaping the future of technology and global supply chains.
In conclusion, Minister Chandrasekhar’s reassurances underscore India’s preparedness to mitigate any potential disruptions caused by China’s export controls on gallium and germanium. With initiatives like iCET and the collaboration between India and the United States, India is actively positioning itself as a reliable global partner in semiconductor manufacturing and a hub for advanced technologies. The country’s focus on building resilient supply chains and fostering innovation is expected to drive its ambition to become a major player in the semiconductor industry, attracting investments and bolstering its technological capabilities.
