Biden government offer to boost India's chip production just 'lip service,' says China

China has rubbished the American government's plans to assist India in building semiconductor manufacturing capacity, calling it 'lip service' in state-run Global Times.

During US government official Afreen Akhter's visit to India, she said that the Biden administration will help the subcontinent boost its semiconductor manufacturing capacity.

Akhter - US deputy assistant secretary, South and Central Asia - led a semiconductors trade mission to India and met top government officials.


According to the Global Times story, the announcement is designed to "lure India into a geopolitical game to exclude China from the global chip industrial chain, rather than a commitment with real investment plans to support India's chip manufacturing."

Even as India introduces multiple incentives for semiconductor production, the US is also doubling down on its domestic chip capabilities. China, meanwhile, saw its biggest ever monthly decline in chip manufacturing in August, due to weak demand and pandemic restrictions.

Last year, the Indian government announced a Rs 76,000 crore performance linked incentive (PLI) scheme in the semiconductor sector.

The Chinese report further goes on to say that the CHIPS and Science Act - aimed at providing $52 billion in subsidies for chip manufacturers to build fabrication plants in the US - "is unlikely to bring benefits to India."

India's semiconductor component market is likley to reach $300 billion in cumulative revenues by 2026, as 'Make in India' and PLI schemes will boost local sourcing of semi-components in the coming years, according to a report by the India Electronics & Semiconductor Association (IESA) and Counterpoint Research.

With inputs from IANS