Donald Trump’s announcement raises concerns for India, Semiconductor Mission likely to get…, US also plans to impose…
New Delhi: US President Donald Trump announced a massive 50 percent tariff on copper imports last week. The latest move by Trump has triggered concerns among companies involved in global supply chains and also raised alarm in India’s electronics and semiconductor industries. According to the reports, the primary aim of this step is to boost domestic copper production in the US. Talking about the US move, Indian officials say it could impact India’s efforts to manufacture chips and electronics under its semiconductor mission.
According to The Economic Times, the industry says India relies heavily on other countries for high-quality copper products. If global trade disruptions increase, it could pose challenges for India. Industry representatives have urged the Indian government to act swiftly.
The representatives have suggested the Modi government not to ease import regulations and ease BIS certification processes, but also invest in domestic production of high-grade copper alloys and other materials essential for electronics and chip manufacturing.
Importance of Copper?
Talking to Nav Bharat Times, Ashok Chandak, President of SEMI India and the India Electronics and Semiconductor Association (IESA), said that copper is an important component for chip wiring, PCBs, interconnects, and power systems.
He further stated that India imports most of its required copper and copper-based materials from other countries. Even the gold-plated copper wires used in semiconductor assembly and testing units are facing various challenges.
- Copper is a very essential raw material for manufacturing electronic equipment.
- It is used in printed circuit boards (PCBs), capacitors, resistors, connectors, relays, and in wiring for semiconductor packaging and assembly.
- Domestic suppliers like Hindustan Copper, Sterlite, and Hindalco are not yet producing copper on a large scale that is required for semiconductor manufacturing.
Manufacturing Costs Will Rise
Ashok Chandak, President of SEMI India and the India Electronics and Semiconductor Association (IESA), said that the manufacturing costs are likely to increase due to global supply issues and the rising cost of goods. This could lead to delays in semiconductor-related projects. He added that India should not only promote fabs but also strengthen supply chains through domestic refining, free trade agreements, and even strategic reserves.
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