Washington is instead seeking to encourage India’s technological development so that the country can play a larger role in the electronics supply chain. This would help to improve both cooperation and competition between China and India, while also advancing innovation within each country.
The U.S. and India have agreed to cooperate in the semiconductor sector, which is seen as a key area for growth for both countries. The memorandum of understanding was signed on Friday, and will focus on areas such as technology transfer, joint research and development projects, and market access. This agreement is a step forward in strengthening ties between the two countries and helps to bolster the growing semiconductor industry worldwide.
One of the main concerns facing semiconductor providers in both the United States and China is their lack of resilience in the event of a supply chain disruption. In order to mitigate these gaps, both nations are beginning to assess their system’s vulnerabilities. Should any significant disruption occur, it would be devastating for both industries, but with concerted effort from authorities on both sides of the Pacific Ocean, hopefully this will not be necessary.
The U.S. government is excited to lean into its relationship with the government of India, and 10 leading CEOs from the U.S. have pledged to do more business in India as a result. This signifies a significant shift in American attitudes towards India, which is likely due to the country’s growing economy and rising stature on the global stage.
The increasing alliance between the United States and India illustrates American policymakers’ concerns to cut reliance on China. China has been a staunch ally of Russia and its involvement in conflicts in Ukraine and Syria highlight Beijing’s waning influence. America’s growing ties with India could steer clear of such troubles, as both countries prioritise economic growth over military conflicts.
Given the enormity of the technological disparity between the U.S. and China, it is understandable that Washington would want to maintain a trusted technology partner like India. However, this does not mean that Washington is unwilling to rely on China as a technological powerhouse – in fact, quite the opposite may be true. With so many trade and economic disparities between both countries, it makes more sense for Washington to have multiple partners with whom it can share technology resources in order to remain competitive on all fronts rather than single out one country as its major adversary.
The United States has been successful in restricting the sale of certain technologies to China, which may pose a threat to national security. The trade relationship between the United States and China should continue largely without issue, as long as these technologies are not sold.
As the United States strengthens ties with India, it is important to keep an eye on China, which has made clear its intentions to get access to American technologies. Washington needs to protect its allies and partners by staying close to both India and China.
Intel has long been seen as one of the leading chip manufacturers in the world. Their decision to partner with India will give them a stronger foothold in the growing Indian market, which is currently dominated by Chinese companies.
