Background to the changes in the chip markets14. June 2023
Background to the changes in the chip markets
The global value of US chip imports is up almost 10% year-on-year. Explanation of the experts: A large part of this is the outsourcing of chip production to cheaper locations in Asia – their share of deliveries is 85%.
How has this played out in the “low-cost countries”? India’s semiconductor imports to the US surged this year, reaching two-thirds of China’s shipments, compared to less than 2% last year. Vietnam and Thailand saw year-over-year growth of 57% and 73%, respectively, while Cambodia saw over 530% growth in chip import value to the US.
Conclusion: It is becoming increasingly clear: while the USA and India are fighting a chip war, India is getting serious and is heading for a competitive alternative to China, especially in the semiconductor sector. The Indians are taking advantage of a recent agreement with the US, which aims to build a semiconductor supply chain while reducing global dependence on China.