Quad Alliance Partners to Secure Semiconductor and 5G Technology Supply Chains

The Quad Alliance – India, United States, Japan and Australia – has partnered to secure supply chains in critical areas such as semiconductors and 5G telecommunications technologies, in a bid to contain the influence China’s growing in these strategic sectors, according to geopolitical experts. .

“Resilient, diverse and secure technology supply chains – for hardware, software and services – are vital to our common national interests,” the United States said in a statement at the first-ever in-person leaders summit. Quad in Washington on Friday.

Prime Minister Narendra Modi joined US President Joe Biden, Japanese Prime Minister Yoshihide Suga and Australian Prime Minister Scott Morrison in calling for “close cooperation on supply chains with allies and partners who share our values “with the aim of improving” the security and prosperity “of the four partner countries and” strengthening the capacity to respond to international disasters and emergencies “.

The deal comes at a time when there is a global semiconductor shortage.

Positive for India

Several countries, including China, Japan and the United States, are striving to develop significant national capacity. India, for the third time in two decades, is trying to build local semiconductor manufacturing capacity by providing incentives for global companies to set up manufacturing units in the country that can be used to supply silicon chips both to the local market and become a base for global sourcing.

“This (the Quad deal) is very positive for India. Multilateral semiconductor cooperation is the only way, because self-sufficiency has not yielded results,” said Pranay Kotasthane, specialist in the semiconductor industry. high-tech geopolitics as deputy director of Takshashila Institution. , a think tank based in Bengaluru.

Modi, who met with Qualcomm CEO Cristiano Amon in Washington DC this week, called on the US company to step up its investments in India in areas such as chips used in 5G telecommunications networks. Globally, Taiwan dominates the global semiconductor manufacturing arena. Taiwan Semiconductor Manufacturing Co, its flagship company, is also the world’s largest producer for more than half of the world’s semiconductor needs, including advanced 5-nanometer chips. He plans to make 3-nanometer chips later this year.

The Quad’s focus on securing high-tech supply chains is also due to this global dependence on Taiwan, which has strained relations with China, Kotasthane said. “China has violated Taiwanese airspace and there have been cyber attacks against Taiwan. These are risks and can lead to supply chain bottlenecks. We are already seeing it in the automotive industry. Collectively, Quad wants to reorganize the supply chain and ensure the adversary does not have key supply chain controls, ”he said.

Quadruple frame

The four leaders also agreed on a framework of Quad principles that will determine the future of the design, development, governance and use of technology. The Quad also focuses on nurturing and promoting a diverse, resilient and secure telecommunications ecosystem, he said.