In the wake of the semiconductor crisis that has gripped the world, members of the Quad Alliance that includes the superpowers of India, Japan, Australia, and the US during their informal meeting at the White House last week pledged to restore the supply chains.
The alliance plans on taking measures to endure that the supply of semiconductors and 5G telecom technologies which have affected numerous companies globally gets restored as soon as possible.
“Resilient, diverse, and secure technology supply chains – for hardware, software, and services – are vital to our shared national interests,” said US President Joe Biden on Friday during the first-ever in-person summit of Quad leaders in Washington. The meeting was also attended by Australian Prime Minister Scott Morrison, Prime Minister Narendra Modi, and Japanese Prime Minister Yoshihide Suga.
Geopolitical experts have stated that this move is also intended in targeting the rising influence of China in the 5G and semiconductor sector since the country has been accused of using advanced technologies to spread its authoritarian regime, particularly in the Indo-Pacific region.
- The US and Japan account for below 30% of the world’s chipmaking capacity.
- On the other hand, Australia and India are not homegrown chipmakers but have the potential to contribute to the supply chain, says Reuters.
- Therefore, India is utilizing its capacity and a burgeoning IT industry to rebuild its semiconductor manufacturing capabilities by offering incentives to global companies to set up fabrication units that could be used for domestic as well as global supplies.
- PM Modi also met Qualcomm CEO Cristiano Amon last week and asked him to step up investments in such areas.