India, they said, can look at opportunities in display manufacturing and backend facilities.
“Unilateral tools can fragment supply chains. The problem is absence of multilateral controls in the semiconductor supply chain,” said Jeffrey Bean, programme manager, technology policy, ORF America.
He said that multilateral arrangements are important for the durability of export controls especially for advanced chip manufacturing.
In March, India and the US launched a “strategic trade dialogue” to address export controls, explore ways of enhancing high technology commerce, and facilitate technology transfer between the two countries. The two also inked a Memorandum of Understanding to establish a semiconductor supply chain and an innovation partnership.
Bean’s statement assumes significance as the US last year prohibited companies from exporting to China the technology, software, and equipment used in producing advanced computing chips and supercomputers, besides barring support to certain China-based chip companies without a government licence. Post these export curbs, China filed a dispute at the World Trade Organization against the US.
“If the the US is too restrictive, then its companies can get hurt and not be able to sustain. If the export controls are missing, then the Chinese military can use and leverage these equipment,” Bean said.South Korea, Japan, the Netherlands, Taiwan and Malaysia, among other countries could be a part of such a multilateral arrangement.
“The challenge is about the products that are being considered. Moreover, an overarching arrangement would be required to monitor such multilateral partnerships,” said Paul Scharre, Vice President and Director of Studies, CNAS.
The other challenges are that not all
countries have capacity for such export controls besides enforcement through respective customs is difficult for many nations.
(The journalist is in Washington at the invitation of the East West Center)