India's semiconductor mission hovering threatened!
US President Donald Trump has created panic worldwide by announcing a 50% heavy tariff on copper imports last week. This decision not only shook the global supply chain, but there has been a wave of concern in India's electronics and semiconductor industry. India's ambitious semiconductor mission, which aims to promote chip and electronics production, can now be in trouble due to this new tariff. Industry experts say that India will have to reduce dependence on abroad for essential raw materials like copper, otherwise there may be big problems in the coming days.
Trump's decision has been taken mainly to promote copper production in the US, but it is also affecting countries like India. High quality copper is very important for electronics and semiconductor industry in India and most of it is imported. Now after 50% tariff, copper prices can touch the sky, there is a fear of increasing the cost of chip and electronics production. Industry experts say that if more obstacles occur in global trade, then it would be a big challenge for India to ensure copper supply.
Ashok Chandok, president of Semi India and India Electronics and Semiconductor Association (IESA), said that copper is the backbone of the electronics industry. It is used in chip wiring, printed circuit board (PCB), interconnect and power system. He said, we ask most of our needs copper and copper products from abroad. Even copper wires made of gold used in assembly and testing of semiconductor are also facing many difficulties.
The semiconductor mission of the Government of India is a big step towards making the country a hub of chip manufacturing. But this tariff of Trump has put a question mark on this mission. Industry experts say that high quality copper is not produced on a large scale in India. Domestic suppliers such as Hindustan Copper, Sterlite and Hindalco are not able to meet the needs of the semiconductor industry. In such a situation, dependence on imports and now tariffs have increased difficulties for India.
According to an Economic Times report, the industry has demanded immediate action from the government. He says that the government should make the import rules easier, simplify the process of BIS certification and most important, in the domestic production of high quality copper and its mixtures. If this does not happen, then the semiconductor mission of India can derail.
Copper is a precious raw material for the electronics industry. It is used in printed circuit board (PCB), capacitor, resistor, connector, relay and semiconductor packaging. Whether it is chip wiring or power system, copper needs everywhere. IESA president Ashok Chandok said that there is no such copper production in India, which can meet the needs of the semiconductor industry. He said, we have to depend on abroad for high quality copper. If the supply chain gets interrupted, then our industry will suffer a big loss.
Industry veterans say that the government now needs to take fast steps. To avoid tariffs on imports, India will have to increase copper production here. Apart from this, domestic manufacturing will have to be encouraged to make the semiconductor mission successful. Experts suggest that the government should invest in the production of copper mixture and other items required for electronics production. Also, there is a need to make BIS certification and import rules further flexible, so that the industry does not have to face shortage of raw materials.
The impact of Trump's decision is not limited to India only. It can have a profound impact on the supply chain around the world. The rise in copper prices can increase the cost of electronics products, which may finally suffer the brunt of the consumers. It is a major setback for countries like India, which are moving rapidly in electronics manufacturing.
