- Published on March 17, 2025
- In Deep Tech
Can India Make a Dent in the $2 Trillion Global Chip Market?
India’s dependence on imports of semiconductor-grade materials and manufacturing equipment could escalate chip prices as trade war looms.
Image by Nalini Nirad
- By Sanjana Gupta
As the April 2 deadline for US President Trump’s proposed 25% tariffs on semiconductor imports approaches, India prepares for potential ripple effects.
While the country does not directly export semiconductors to the US, its electronics manufacturing sector heavily relies on the import of semiconductor-grade materials and manufacturing equipment. This could result in higher costs for domestic manufacturing, forcing companies such as Apple to deal with increased expenses, which may strain their sales in India.
However, experts caution that India should build a strong local supply chain to reduce production costs.
“The concern is not just about making chips, but making chips that meet global efficiency and cost requirements. Otherwise, Indian manufacturers will
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Sanjana Gupta
An information designer by training, Sanjana likes to delve into deep tech and enjoys learning about quantum, space, robotics and chips that build up our world. Outside of work, she likes to spend her time with books, especially those that explore the absurd.
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