“Chip 4” alliance initiative

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Chip 4” alliance initiative

·      The US is pursuing the “Chip 4” alliance initiative with three other top semiconductor makers — Taiwan, Japan and South Korea.

·      India, Japan and Australia had announced plans in September 2021 to establish a semiconductor supply chain initiative “to secure access to semiconductors and their components”.

·      A further convergence of regional efforts is a distinct possibility if the US were to play a fostering role to avoid overlap of efforts by partner countries, heralding the possibility of India being possibly drafted into some of the mainstream chip alliances that are being discussed.

·      India is keen on greater collaboration shepherded by the US is the way the global semiconductor chip industry works, dominated almost entirely by some countries and, in turn, a handful of companies. For instance, two nations – Taiwan and South Korea – make up about 80 per cent of the global foundry base for chips. Taiwan Semiconductor Manufacturing Co.(TSMC), the world’s most advanced chipmaker, is headquartered in Taiwan, while only a handful of companies – Samsung, SK Hynix, Intel and Micron – can put together advanced logic chips, and US’ Nvidia dominates the chips used in the high-end graphics-based applications. One firm in the world – the Netherlands based ASML – has the capability to produce a type of machine called an EUV (extreme ultraviolet lithography) device, without which making an advanced chip is simply not possible.

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