India-U.S. Partnership in Electronics and Semiconductor Manufacturing is Gaining Momentum

The global electronics industry is undergoing a massive transformation, driven by evolving trade dynamics, supply chain challenges, and rapid technological advancements. As countries and businesses work toward building more resilient and diversified manufacturing ecosystems, partnerships between key players like India and the United States are becoming increasingly crucial.

In an exclusive interview with IGNITO, Jason Oxman, President and CEO, Information Technology Industry Council (ITI), discusses the state of global electronics manufacturing, key trends shaping supply chain resilience, and how India’s Production Linked Incentive (PLI) scheme is boosting its position as a global manufacturing hub. He highlights the lessons India can learn from semiconductor powerhouses like Taiwan and the U.S., the impact of tariffs on global supply chains, and the potential of the India-U.S. semiconductor partnership in strengthening the industry.

With growing U.S. investments in India’s electronics sector, Oxman emphasizes the role of ITI in fostering collaboration, advocating for open markets, and ensuring that trade policies support innovation and competitiveness. As the world prepares for a new era of high-tech manufacturing, this interview provides a comprehensive roadmap for policymakers, industry leaders, and stakeholders navigating the evolving global electronics landscape.

IGNITO: How do you see the current state of the global electronics manufacturing ecosystem, and what are the key trends shaping its future?

Oxman: The tech industry employs millions globally, strengthens economies and communities worldwide, and supplies the innovation and devices we rely on every day. That’s why ITI encourages global policymakers to develop a whole-of-government approach to supply chain security and resiliency and consider both short-term and long-term efforts to foster a more robust U.S. and allied ICT ecosystem. We believe that ICT supply chain resiliency can be enhanced through targeted policy measures aimed at incentivizing research and development, building a skilled workforce, and streamlining supply chain security policymaking in coordination with global partners and allies.

IGNITO: Supply chain resilience has become a major focus post-pandemic. What strategies should global electronics manufacturers adopt to mitigate risks and ensure sustainability?

Oxman: India should take a risk-based approach with respect to imports and recognize that no single country can manufacture everything at home. Trusted multinational companies understand national security concerns and should be afforded the flexibility to source products and components from global supply chains, which they have developed and vetted over years if not decades.

IGNITO: India has made significant strides in electronics manufacturing, with initiatives like the Production Linked Incentive (PLI) scheme. How do you assess India’s progress in becoming a global hub for electronics manufacturing?

Oxman: The tech industry is an essential partner in India’s drive to become a $1 trillion digital economy. Working to grow the digital economy by unlocking trade opportunities for businesses operating within the Indian market will benefit the entire economy and help India with other important goals such as increasing manufacturing. India can leverage this economic reality by including the components of digital trade and services – such as software development and engineering – in programs like the Production Linked Incentive Scheme (PLI) and the Make in India campaign. This will also help India capitalize on its prodigious workforce with skills and abilities that reach beyond manufacturing.

IGNITO: What critical policy interventions should India focus on to enhance its competitiveness in the global electronics value chain?

Oxman: ITI has prepared detailed recommendations for the Government of India to enhance India’s competitiveness in global electronics value chain. Our recommendations include increasing skill development and training; providing grants for R&D and innovation; supplying regulatory and policy support from all parts of the Government; removing import duties/levies on ICT products and removing other restrictive policies on imports; and creating export opportunities for companies manufacturing in India.

IGNITO: India is increasingly positioning itself as a key player in semiconductor manufacturing. What lessons can India learn from established ecosystems like Taiwan and the U.S.?

Oxman: ITI believes that India has the enormous potential of becoming a crucial part of the semiconductor supply chain ecosystem. To be successful, India needs to focus on its critical strengths. Some of our key recommendations for India’s semiconductor mission include:

Building a world-class semiconductor manufacturing parks and establish robust logistics for raw materials and finished products.

• Establishing government-funded R&D institutions in partnership with private industry to innovate in design, manufacturing processes, and new materials.
• Offering long-term stability and incentives like tax breaks, grants, and low-interest loans.
• Focusing on creating a domestic ecosystem with strong links to global semiconductor supply chains to ensure stability and reduce disruptions.
• Strengthening already existing IP laws and enforcement mechanisms to protect innovation, foster partnerships, and promote industry growth.
• Leveraging India’s strategic geopolitical position to establish partnerships with key semiconductor-producing nations and become a trusted manufacturing partner for global players.

IGNITO: The tariffs imposed by the Trump administration on Chinese imports, including electronic components, had significant implications for global supply chains. How have these tariffs reshaped the electronics manufacturing industry?

Oxman: Technology supply chains are complex and global, and policies to restrict the movement of inputs and finished products can raise costs and cause disruptions throughout the ecosystem. Trade is crucial to supply chain resilience, to advance competitiveness and innovation, and to support the prosperity of workers, businesses of all sizes, and consumers. That is why it is critically importance for policymakers to aim for clear, constructive outcomes in trade actions and negotiations with foreign governments, avoid trade restrictions to the extent possible, and continue efforts to open markets and reduce barriers to trade.

IGNITO: Do you foresee any long-term structural shifts in electronics manufacturing due to these tariffs, and how have companies adapted to these changes?

Oxman: It is an ever-evolving situation and we’re in close contact with relevant stakeholders and our members.

IGNITO: Given the possibility of future protectionist trade policies, how can the global electronics industry navigate uncertainties while maintaining growth?

Oxman: We know that predictability and stability are crucial to our member companies’ business operations, and we’re continuing to advocate for policies that promote robust and fair trade. These policies must be developed and implemented in close partnership with industry to ensure they are appropriately calibrated and effective in practice.

IGNITO: How do you see the India-U.S. partnership evolving in electronics manufacturing, particularly in the semiconductor and high-tech sectors?

Oxman: Over the past two decades, India and the United States have taken their bilateral relationship from a focus on strategic defense to technology. The United States is home to some of the largest and most innovative technology companies, while India has huge technology talent and nimble solutions for the globe. Most of our member companies have huge capacity centres in India, bringing billions of dollars of tax revenues for the government. It is a relationship of symbiosis that has endless potential.

IGNITO: The CHIPS and Science Act has boosted semiconductor investments in the U.S. How can India and the U.S. collaborate to create a mutually beneficial semiconductor supply chain?

Oxman: While a large part of the U.S. CHIPS and Science Act is to spur the growth of semiconductor manufacturing and research and development in the U.S., around $500 million was earmarked for the International Technology Security and Innovation Fund (ITSI) – an initiative led by the State Department to ensure semiconductor supply chain security and diversification. As part of that effort, the U.S. State Department partnered with the India Semiconductor Mission to explore opportunities to grow and diversify the global semiconductor ecosystem.

During PM Modi’s visit to Washington, D.C., President Trump and PM Modi announced the launch of the U.S.- India TRUST (Transforming the Relationship Utilizing Strategic Technology), which catalyses collaboration on critical technologies including semiconductors. The tech industry looks forward to being an essential stakeholder in this partnership, and stands ready to work with both governments to promote build and trusted and resilient supply chains for semiconductors.

IGNITO: With growing investments from U.S. companies in India’s electronics sector, what role can ITI play in fostering deeper collaboration between the two nations?

Oxman: ITI continues to encourage governments and policymakers to ensure policies and regulatory practices bring about innovation and cutting-edge technology for the good of humanity. In the process, this partnership creates jobs and propels economic growth. We also champion the importance of market access, and encourage the U.S. and India to remove trade barriers, which help deliver transformative technologies to citizens and businesses at affordable costs.

IGNITO: What specific policy frameworks or trade agreements would help strengthen the India-U.S. partnership in electronics and semiconductor manufacturing?

Oxman: We are encouraged by Government of India’s recent emphasis on deregulation in key sectors, as highlighted in India’s budget 2025-2026 and Economic Survey. This is a step in the right direction, and with private sector stakeholder consultation, we feel India will emerge as key champion of the digital ecosystem.