India’s Semiconductor Diplomacy & Global Chip Supply Chain Strategy (2025)

6️⃣9️⃣ India’s Semiconductor Diplomacy & Global Chip Supply Chain Strategy (2025) 💻🔬

🔹 Introduction

India is emerging as a key player in the global semiconductor supply chain through its Semiconductor Mission (ISM 2025), fostering strategic alliances with the US, Japan, Taiwan, and the EU to ensure chip security, technological self-reliance, and advanced semiconductor manufacturing.

With a global chip shortage and geopolitical tensions affecting semiconductor trade, India is investing in chip fabrication plants (fabs), AI-powered semiconductor R&D, and next-gen chip technologies, making it a critical player in the global electronics and defense sectors.

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🔹 Key Developments in India’s Semiconductor Diplomacy (2025)

✅ India-US Chip Pact & QUAD Semiconductor Partnership 🤝

• India and US collaborate on semiconductor R&D and advanced chip production.
• QUAD (India, US, Japan, Australia) launches a joint initiative for chip supply chain security.
• India joins the CHIPS Act supply chain diversification initiative.

✅ Semiconductor Fabs & AI-Driven Chip Manufacturing 🏭

• Vedanta-Foxconn and Tata Electronics establish semiconductor fabs in Gujarat & Tamil Nadu.
• Government offers ₹76,000 crore incentives for semiconductor production.
• AI-powered automation integrated into India’s chip manufacturing plants.

✅ Strategic Chip Trade Agreements with Taiwan, Japan & EU 🌍

• India-Taiwan semiconductor trade agreement secures critical chip imports.
• Japan collaborates with India on semiconductor packaging and advanced lithography.
• India-EU agreement boosts chip design and AI-powered semiconductor research.

✅ Next-Gen Semiconductor R&D & Defense Electronics 🛡️

• ISRO and DRDO develop radiation-hardened chips for space & military applications.
• AI-driven semiconductor R&D accelerates quantum computing chip development.
• High-performance chips for 6G, AI, and IoT industries in production.

✅ Challenges in India’s Semiconductor Strategy ⚠️

• High cost and technical barriers in setting up semiconductor fabs.
• Dependence on foreign firms for advanced chip fabrication technology.
• Geopolitical risks affecting semiconductor trade agreements.

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📌 Advanced 3-Statement-Based MCQs on India’s Semiconductor Diplomacy (2025)

1️⃣ Consider the following statements regarding India’s Semiconductor Mission (ISM):

1. India has launched the Semiconductor Mission (ISM) to develop indigenous chip manufacturing.
2. The mission includes government incentives for semiconductor fab establishment.
3. India has completely eliminated its dependence on foreign semiconductor imports.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

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2️⃣ Consider the following statements regarding India’s semiconductor trade agreements:

1. India and Taiwan have signed an agreement to ensure secure semiconductor imports.
2. Japan is collaborating with India for semiconductor packaging and lithography.
3. India has completely banned semiconductor imports to promote domestic production.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

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3️⃣ Consider the following statements regarding AI-driven semiconductor manufacturing in India:

1. AI-powered automation is enhancing semiconductor production efficiency.
2. India is developing AI-driven semiconductor chips for 6G, IoT, and defense applications.
3. India has already surpassed China in semiconductor production.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

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4️⃣ Consider the following statements regarding India’s role in global semiconductor supply chains:

1. India has joined the QUAD semiconductor partnership for chip supply chain security.
2. India’s semiconductor industry has surpassed $100 billion in economic output.
3. India is working with the US under the CHIPS Act initiative for semiconductor research.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

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5️⃣ Consider the following statements regarding challenges in India’s semiconductor industry:

1. India faces high infrastructure and capital costs for setting up semiconductor fabs.
2. India is entirely self-sufficient in semiconductor design and manufacturing.
3. Geopolitical tensions impact India’s semiconductor trade relations with key partners.

Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

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🚀 Conclusion

India’s semiconductor diplomacy is strengthening global partnerships, boosting chip manufacturing, and securing supply chains, but high costs, technical dependencies, and geopolitical risks remain. With strategic investments, AI-driven R&D, and international collaborations, India is positioning itself as a future leader in the global semiconductor ecosystem.