US Copper Tariff Puts Pressure on India’s Chip and Electronics Goals
The recent announcement of a 50% tariff on copper imports into the United States has raised concerns across global supply chains, especially in India’s growing electronics and semiconductor sectors. While the US intends to promote its own copper industry, the move may indirectly affect India’s ambitions under its semiconductor mission.
Experts from the industry have expressed concern that India’s heavy dependence on imported high-purity copper and specialty alloys could become a major obstacle as global trade barriers increase. These materials are essential for chipmaking, printed circuit boards (PCBs), connectors, and other electronic components. Any disruption or rise in costs could slow down India’s semiconductor progress, which is still in its early stages.
At present, India imports most of the refined and high-grade copper needed for advanced electronics. Domestic companies like Hindustan Copper, Hindalco, and Sterlite produce copper, but not in the purity or form required for semiconductors. The lack of domestic capacity to process such materials makes India vulnerable to international policy shifts and supply chain shocks.
Industry stakeholders have urged the Indian government to act swiftly. They suggest easing import procedures, improving certification processes, and investing in the local production of high-purity copper. Until India builds such capacity, facilitating strategic imports is crucial to maintaining momentum in electronics and chip manufacturing.
In 2024–25, India exported $2 billion worth of copper products, with the US accounting for 17% of that. Though a drop in US demand may be absorbed by domestic use, the long-term impact on the semiconductor supply chain could be significant if alternate sources or domestic production aren’t developed quickly.
Experts emphasize that semiconductors rely on an entire ecosystem, and stable, affordable access to raw materials like copper is foundational to its success.
Source: The Economic Times
