How the TTC Agreement with the EU can help India shape Global Tech Ecosystems

Earlier this year, Prime Minister Narendra Modi met with the European Union President Ursula von der Leyen and announced the setting up of the India-EU Trade and Technology Council (TTC). The joint statement released by the two leaders on the launch of the council described the TTC as a body that was responsible for the “strategic coordination mechanism [that] will allow both partners to tackle challenges at the nexus of trade, trusted technology and security, and thus deepen cooperation in these fields between the EU and India”. Since the official press release of the TTC, there have been no more follow-up announcements or movement on the front. This has raised questions about how the Council should function and its role in determining the technology trade agreements between the two entities. What would be the methods of cooperation and the focus areas for India and the EU? These still remain to be answered and delved into.

India needs a Holistic and Effective ‘Techplomacy’ Strategy

Technological advancements in the 21st Century have heightened the role of technology in the diplomacy arena. Technically adept nation-states are developing their own strategies to integrate technology with their foreign policy and diplomatic initiatives. But how can technology be used as a credible diplomatic plank by the Indian State to further its national and geopolitical interests? The Indian state needs to address the ability to utilise technology as a credible foreign policy and diplomacy tool.

How India Can Use Technology as a Strategic Tool to Advance Its Interests

In the current Information Age, technology has become a ubiquitous part of every country’s society. Citizens are empowered in a wide range of ways with improved access to technology, states’ economic sectors are transitioning into the digital space, and tech development has been outpacing regulations and governance regularly. This is the era where technology is becoming a strategic tool for the state to drive growth and protect its interests. India, as a fledgling and rising technological power, has the ability to leverage technology for the greater good. The Indian state should now start viewing technology and its adoption from a more strategic lens. But how can India use ‘technology’ to tackle existing problems as well as try to deploy it as a prospective solution in key areas of governance?

How India Can Use Its G-20 Presidency To Build A Techno-Democratic Alliance

In the year 2023, India will have the opportunity to preside over one of the key international alliances, i.e. G-20. The G-20 remains an elite group of economically and technologically developed nations which control the global economy in the current scenario. India’s presidency next year offers an opportunity for the government to set critical agendas for the group. One of the key areas that India can focus on as part of its presidency can be technology and bringing like-minded states together on the technological front. Considering the primacy of technology in both the economic and foreign policy realm, it is in India’s interest to push for an alliance between techno-democracies to regulate and govern the use of critical technologies in the future.

The Chip4 Alliance Might Work on Paper, But Problems Will Persist

U.S. President Joe Biden recently added his signature to the CHIPS and Science Act 2022, officially enacting legislation on emerging technologies, especially semiconductors. Apart from focusing on building the United States’ semiconductor manufacturing capabilities, the legislation makes a note of the U.S. cooperating with like-minded allies to build a robust semiconductor supply chain. One such alliance is speculated to be the Chip4 Alliance, which would comprise the U.S., Taiwan, South Korea, and Japan, a partnership proposed by Washington in March. U.S. House Speaker Nancy Pelosi’s recent meeting with semiconductor industry leaders in Taiwan has accelerated conversations about this new U.S.-Asian semiconductor partnership.

What a Taiwan Crisis Means for the Global Chip Race

With the Chinese state showcasing aggressive responses to Nancy Pelosi’s recent Taiwan visit, one begins to wonder whether another Taiwan Straits Crisis is on the horizon. A question to address in case of another crisis is the effect it might have on the global semiconductor and electronics supply chain. With the world slowly recovering from a chip shortage and the industry ramping up supply to pre-pandemic levels, can we afford another supply chain shock to the industry? With Taiwan and China being integral aspects of the global semiconductor ecosystem, how will increased cross-strait tensions affect the industry? If there is eventually a military offensive launched, what will the end result look like for the industry?

SMIC’s New 7nm Chip Should Worry West — But There’s A Way Out

There were recent reports that Semiconductor Manufacturing International Corporation (SMIC), China’s biggest semiconductor foundry and fabrication facility has developed a chip using a 7nm technology node indigenously. The new chip, a leading-edge node (in terms of the number of transistors fitted on the chip itself) as per the TechInsights report, has been developed by SMIC for MinerVa Semiconductor, a semiconductor design company registered in Canada but with Chinese directors at the helm. The chip has been specifically designed and manufactured for the mining of the cryptocurrency, Bitcoin. The report also suggests that SMIC plans to use the process technology to develop other products at the same node in the future.

For India-US iCET Partnership, China Is One of Many Challenges

Recently, two of the world’s established technological powers, the United States (US) and India, decided to further bolster their positions by enhancing cooperation in the technology domain. US President Joe Biden and Prime Minister Narendra Modi’s meeting resulted in the announcement of the Initiative on Critical and Emerging Technologies (iCET) to expand the existing partnership between the two states in specific strategic technology sectors. The concept of building tech alliances with the help of like-minded techno-democracies has brought together multiple states in the recent past. The iCET looks like just an extension of the existing bilateral cooperation in the technology sector between the two countries.

What we Should Learn from China's Use of Technology as a Tool of Foreign Policy

Immense state support, coupled with the rise of domestic technology giants, has made China a major power competing to secure technological space with other powers like the US and Europe. There is also the issue of how the Chinese state has been actively promoting and exporting its technology infrastructure beyond its borders, thereby increasing its sphere of influence. This expansion of the technology-oriented Sinosphere has made other states take cognisance and try to increase their diplomatic outreach to counter China’s ever-increasing growth. But how has China been so successful in utilising technology as a credible foreign tool? What lessons does China’s aggressive ‘techplomacy’ offer to other technological powers?

The New CHIPS Bill Raises More Questions Than it Answers for the US

Last week, the US Senate decided to advance a bill to promote and support semiconductor chip manufacturing in the country. The bill, known as the CHIPS Act, is an extension to the previous year’s legislation passed by the Senate which approved a $250 billion bill to reinforce US chip-making to compete with the growing clout of China. But how much can the CHIPS Act achieve the goals and objectives that the US government intends to? Will there be any unintended consequences and unfavourable effects that might arise from the Act itself?

India’s Semiconductor Push should Focus on Revamping the DLI Scheme

Announcing that India needed a long-term vision for building its semiconductor ecosystem, the minister for electronics and information technology, Ashwini Vaishnaw, unveiled four different schemes covering all areas of the semiconductor supply chain. One of these was the Design Linked Incentive (DLI) scheme that aimed at cultivating and building on India’s expertise in semiconductor design. Given India’s comparative advantage in human capital, DLI is a welcome change from focusing solely on chip manufacturing. However, six months after the updated semiconductor policy created ripples in the industry, the traction for DLI scheme has been underwhelming.

Why China's Post Pandemic Semiconductor Rise is Essential to Watch Out for

Just around a couple of weeks back, Bloomberg came out with a report focusing on the growth of China’s chipmaking prowess and its stature in the global semiconductor ecosystem. As per the data presented by Bloomberg, over 95 per cent (19 out of the top 20) of the fastest-growing semiconductor firms over the last four quarters have been from China alone. 

Focus on Innovation in Semiconductor Technology Will Boost Defence Manufacturing

The Ministry of Defence (MoD) has prepared a list of around 209 military items on which import embargos would be placed after a specific amount of time. This is to provide opportunities for the local industry to manufacture these items. There is also the support of the defence sector in building long-term strategic partnerships with global equipment manufacturers for technology transfers to help Indian manufacturing infrastructure and supply chains. The increased focus on semiconductor manufacturing by the government also comes into the picture here. With the government curating policies to encourage defence manufacturing and start semiconductor manufacturing in the country, this is the time for a confluence of both in India’s national interest.

Why India, EU Should Prioritise Removing Existing Bottlenecks in Trade and Technology Pact

As technology remains a critical factor in advancing countries’ economies, there is also a quest for improving the accessibility of these critical technologies. The recently announced Europe-India Trade and Technology Council (TTC) Agreement is an attempt to have easier access of key technologies to both actors. The agreement seeks to improve the cross-border flow of technology goods and services between the two entities. An area of focus would be the existing and potential trade barriers that might impact the agreement. These barriers need to be addressed if the agreement can yield tangible results for the growth of the technology sector in India and Europe.

How India Can Take a Leaf Out of China’s Playbook on Battery Swapping to Form a Robust EV Ecosystem

The first draft of the NITI Aayog’s ‘Battery Swapping Policy’ displays the Indian government’s commitment to building a conducive environment for the mass adoption of electric vehicles (EVs) in India. The policy discerns some of the prevalent issues affecting consumers currently dabbling in the EV market and aims to tackle these through technologically-intensive solutions. However, there is a significant lack of clarity about the potential business models that may arise if the battery swapping policy were to be implemented. As a result, India must look outwards to understand how potential stakeholders can be engaged to form a robust EV ecosystem in India.

How China’s National Computing Network will be a Game Changer

Recently, the Cyberspace Administration of China unveiled an ambitious ‘National Computing Network’ initiative to address regional technological imbalances and develop a connected computing grid infrastructure across the country. Based on the concept of “Eastern Data and Western Computing”, the project proposes setting up clusters of computing resources in China’s less technologically developed western region, to form an integrated network with data centres in the more technology-oriented eastern cities.

In an Era of Cyber Wars, India needs a Fortified Computing Ecosystem

Advanced mechanisms have taken over the field of computing, with nation-States, along with private companies, embroiled in a high-stakes race to increase indigenous computing power for economic and strategic purposes. With India’s data generation at an all time high, there is a need to improve computational capabilities by using advanced computing technologies. Recent progress by the State has showcased the government’s intent. But a holistic strategy is in need to facilitate its further advancement.

For World to View India’s Potential as Semiconductor Powerhouse, We Need Targeted Trade Policies

India faces a tough task ahead: to show its commitment to building the semiconductor industry. Industrial policies with capital may attract investments and potential bids, but favourable trade policies and a conducive business environment can ensure the completion of the projects and yield results. In the long run, this approach can attract more international semiconductor firms. India can be closer to its goals by adopting the following policy recommendations. To begin with, India must change its approach to foreign trade policy and make it more accommodating to the technology sector. The government can then focus on developing a comprehensive trade policy suited or catered to the semiconductor industry itself.

West’s Russia Model Won’t Work with China: Why Tech Sanctions Alone Cannot Deter Dragon

The tech sanctions on Russia would have a devastating impact on its economy and affect the domestic market’s accessibility to basic technology goods. But if there is Chinese aggression against Taiwan in the near future, can these sanctions work? Will tech sanctions serve as a credible tool to deter or even punish the Chinese state from conducting their own military operations across the Taiwan straits? For a technologically advanced state such as China, will these targeted sanctions have any impact on its tech economy? China is much more integrated into the global economy and supply chain. And, that makes it much more difficult to have broad-based sanctions against China unlike those against Russia; it also makes sanctions far more costly for China because it has much more to lose.

What the Quad must do to build a resilient semiconductor chain

Japan is hosting the Quad Leaders’ Summit meeting today. One agenda item will be to announce a concrete action plan under the Semiconductor Supply Chain Initiative, launched by the leaders of the four countries in their last meeting in September 2021. The goal of the initiative is to strengthen the global semiconductor supply chain’s productive capacity and resilience.

Through this initiative, the Quad officially recognises that the semiconductor supply chain has geo-security consequences. The Semiconductor Industry Association – an industry body in the US – estimates that a typical semiconductor production process spans 4+ countries, 3+ trips around the globe, 25,000 miles and 12 days of travel. Given the hyper-global nature of this supply chain, no one country can become fully self-sufficient. For building a reliable, secure semiconductor supply chain, plurilateral partnerships are a necessity and not a choice.