US tariffs on semiconductors unlikely to impact India

The proposed 25% tariff on semiconductors by US President Donald Trump is unlikely to affect India’s semiconductor industry due to two key reasons.

First, India’s semiconductor ecosystem is still in its early stages, and the country does not currently export chips. Second, even as India develops its chip manufacturing and assembly ecosystem in the coming years, it will primarily operate under a “chip manufacturing-as-a-service” model. This means chips produced in India will cater to global clients, not just the US.