US invests in India for semiconductor partnership

The United States government is starting a partnership with India to boost its semiconductor manufacturing capacity. The plan, as always, is to curb China’s growth and dominance in the area by diversifying allied countries capable of helping in the chip supply chain.

The investment to be made in India is part of the International Technology Security and Innovation (ITSI) Fund. This fund, in turn, is determined by the CHIPS Act, a US initiative that has offered billions of dollars to expand domestic semiconductor manufacturing capacity.

While helping companies like Intel and TSMC set up factories on domestic soil, Uncle Sam is also supporting neighboring countries through the CHIPS Act. India, in fact, is eighth on the list of beneficiaries, with Costa Rica, Indonesia, Kenya, Mexico, Panama, the Philippines and Vietnam also receiving ITSI investments.

India’s choice is no coincidence. The country began a campaign in 2014 to expand its technology manufacturing capacity in order to become an international hub for semiconductor manufacturing. Industry experts expect that by 2028, India will produce 25% of the world’s iPhones.

India speeds up as China stalls

While the outlook for India is increasingly positive in the area of ​​chip production, China has been under pressure from the US to impede its advances.

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China has already seen growth in this manufacturing area of ​​around 356% between 2012 and 2022. The forecast is now just 86% for the decade between 2022 and 2032, a number below the 108% estimated for average growth around the world.

It is worth noting that these are estimates from the Semiconductor Industry Association (SIA) in the United States.

Fonte: The Register