India should consider zero tariffs on semiconductor manufacturing if it wants to become a significant player in global supply chains, says John Neuffer, President and CEO of the US Semiconductor Industry Association.
In an exclusive chat with CNBC-TV18, Neuffer emphasised that while India is on the right trajectory in growing its chip-manufacturing footprint, it is important to have a lower tariff and more conducive trade policy. “US is already getting zero tariff treatment from chip supply chain partners around the world but not from India”, he said. He added that more investments in skilling people — not just in design but actual chip manufacturing — would pay off in the long run.
The US Semiconductor Industry Association represents 99% of American semiconductor companies and two-thirds of semiconductor companies worldwide. Neuffer said that India must take one bite of the apple at a time to show the world its intent to be a reliable long-term partner in semiconductor manufacturing at a time of intensifying competition in chip production in Southeast Asia.
The SIA has expressed concerns about the Trump administration’s plans to impose higher tariffs on Taiwan-manufactured semiconductors. Trump has proposed to impose 100% tariffs on semiconductor imports from Taiwan. Neuffer said such a policy, if implemented, would be problematic and cause huge disruption.
“[The] US is very dependent on global semi-conductor supply chains, and we need components as cheaply as possible. Tariffs raise costs for US semiconductor fabs and manufacturing,” he said. The United States continues to dominate global semiconductor manufacturing with a more than 50% market share.
The Trump administration is scrutinising contracts handed out by the Biden administration under the CHIPS Act, which Neuffer says has already resulted in commitments to the tune of half a trillion dollars in chip fabrication in the USA. “By 2032, US would have tripled its manufacturing of the world’s most advanced chips, or 30% of the world’s most advanced chips would be made by America by 2032,” he adds.
According to the SIA, the global semiconductor industry saw a robust 20% growth in 2024, and growth in 2025 is expected to be higher than 11%. CNBCTV18