- विज्ञापन -
India is not expected to face significant short-term impacts from the US semiconductor tariffs, according to the India Electronics and Semiconductor Association (IESA). This is largely because India does not export a substantial amount of chips to the US and currently imposes no import duties on semiconductors, eliminating concerns over reciprocal tariffs.
The country’s emerging semiconductor manufacturing and Outsourced Semiconductor Assembly and Test (OSAT) facilities primarily serve global brands. As demand for semiconductors within India continues to grow, the increased local production is expected to reduce dependence on imports.
In the long term, Indian semiconductor firms should not face significant disadvantages from the US tariffs, which are likely to affect all exporting countries equally. The tariffs, initially instituted under the Trump administration and reaching up to 25% or higher, are anticipated to significantly impact the global semiconductor industry, leading to increased costs, altered supply chains, slowed innovation, and various geopolitical effects.
Specific regions such as Taiwan, South Korea, and China, which are key players in chip manufacturing, will see heightened costs due to these tariffs. Consumers might experience higher prices for electronics like smartphones, laptops, electric vehicles, and industrial equipment due to these additional expenses being passed down from companies like Apple, NVIDIA, and Tesla, which are reliant on imported chips.
In response, firms may look to diversify their supply chains by sourcing from regions unaffected by tariffs or boosting domestic production. However, establishing semiconductor fabrication plants (fabs) requires significant investment, ranging from $10 billion to $25 billion, escalating the need for careful consideration of factors such as talent availability, tax structures, regulatory environments, and labor conditions when making investment choices.
