EXCLUSIVE: MoS Rajeev Chandrasekhar says China's export curb on gallium, germanium won't impact India

China’s decision to impose export controls on two critical rare elements—gallium and germanium—used in semiconductor manufacturing will not impact India, Rajeev Chandrasekhar, Minister of State for Electronics and IT, told Business Today, assuring that there will not be any abuse of supply chains.

Chandrasekhar told BT exclusively: “The India-US Initiative on Critical and Emerging Technology (iCET) precisely ensures that there is no such control or abuse of supply chains. [iCET] also covers materials. The world today is working closely with a new India to develop trusted global supply chains. Under Prime Minister Narendra Modi, the India-US partnership as well as India’s partnerships with like-minded countries will define the future of technology and global supply chains.”

This is significant considering India’s aim to become a semiconductor and electronics manufacturing nation and a global supply chain partner to the world.

To expand strategic technology partnership, President Joe Biden and Prime Minister Narendra Modi had announced the iCET in May of last year. During the inaugural meeting of iCET in Washington, DC, in January, the two sides discussed opportunities for greater cooperation and identified biotechnology, advanced materials, and rare earth processing technology as areas for future cooperation.

Under iCET, both India and the US are focusing on building a resilient semiconductor supply chain in-house. The nations are enhancing bilateral collaboration on resilient semiconductor supply chains, and are supporting the development of a semiconductor design, manufacturing, and fabrication ecosystem in India. They are also looking to leverage complementary strengths, and both countries intend to promote the development of a skilled workforce that will support global semiconductor supply chains and encourage the development of joint ventures and technology partnerships on mature technology nodes and packaging in India.

This was followed by United States signing a Memorandum of Understanding (MoU) on Semiconductor Supply Chain and Innovation Partnership with India in March. The MoU was signed between US Secretary of Commerce Gina M. Raimondo and Union Commerce and Industry Minister Piyush Goyal during India-USA Commercial Dialogue in Delhi. It seeks to establish a collaborative mechanism between the two governments on semiconductor supply chain resiliency and diversification in view of US’s CHIPS and Science Act and India’s Semiconductor Mission.

Eswara Rao Nandam, Founding President of Tamil Nadu-based Polymatech, told Business Today, “If the India administration follows the same strategy (like in Ukraine war) [of neutrality] we can get this material. Then many companies will jump to India.” Polymatech manufacturers Opto-semiconductors used in lighting, medical and food sanitisation applications, and memory modules at Kancheepuram, Tamil Nadu.

Also read: US, India elevate strategic partnership under iCET, launch initiatives to expand technology partnership

Also read: US finds India as a trusted partner for diversifying semiconductor supply chain, to sign an MoU

Also read: China’s export curbs on gallium, germanium to raise chip prices in short term, diversify supply chain in long term