China's CEO meet impacts India's semiconductor industry potential

China is planning a meeting between President Xi Jinping and global CEOs. This move aims to stabilize declining foreign investment in China, which has been affected by trade tensions, especially with the US. As China seeks support from global business leaders, there are concerns that some investment flows from India to China may occur. India is making strides in semiconductor research and development. From 2018 to 2023, it ranked third globally in the number of research papers published on chip design and fabrication. Indian researchers contributed about 40,000 papers, holding an 8.4% share of global publications. However, China leads this field with over 160,000 papers, claiming 34% of the global output. The semiconductor supply chain face unique challenges. While the US dominates in chip design, Asia, particularly Taiwan, South Korea, and China, accounts for most manufacturing. The COVID-19 pandemic highlighted the vulnerabilities of this concentrated supply chain. India has about half a million professionals in chip design and is home to major companies like Qualcomm and Intel. The Indian government's budget for semiconductor research and development has increased significantly. Policies such as production-linked incentives and special economic zones bolster India's status in semiconductor manufacturing, though it currently produces less than 1% of the world's semiconductors and relies heavily on imports. The semiconductor market in India is expected to grow from $40 billion in 2024 to over $100 billion by 2032. Major Indian companies like Tata Electronics and HCL Technologies are investing in semiconductor initiatives, including design centers and partnerships with international firms like Foxconn. Despite potential growth, India's semiconductor industry faces challenges such as a labor shortage and competition from US and Chinese companies. The US government is also investing heavily in domestic chip production to reduce reliance on foreign manufacturers. China's meeting with global CEOs could affect India's semiconductor sector. Chinese companies are increasing investments in semiconductor factories to enhance their research and development. Moreover, China's tightening control over rare earth minerals essential for semiconductor production raises concerns for Indian manufacturers, who need access to these resources. Overall, India's semiconductor companies must navigate global challenges while capitalizing on domestic growth opportunities.