An anonymous reader cites a report from Ars Technica. India's plan to let a moratorium on customs duties on cross-border digital e-commerce expire could have a negative impact on its more ambitious plans to become a global chip leader over the next five years, the sources said. Reuters reported. It will also drive up costs for the semiconductor industry, further exacerbating the global chip shortage, as many governments around the world invest heavily in expanding domestic chip supply to keep up with rapidly advancing technology. there is a possibility.
Heads of state will convene for a World Trade Organization (WTO) meeting early next week, just before the March deadline to extend the moratorium. The moratorium has been renewed every two years since 1998, but India is losing significant revenue by not imposing the tax as demand for digital goods such as movies, e-books and games increases. There are growing concerns. Hoping to change India's mind, a global consortium of semiconductor industry associations known as the World Semiconductor Council (WSC) sent a letter to Indian Prime Minister Narendra Modi on Thursday. Reuters reviewed the letter and found that ending the moratorium would result in WSC imposing tariffs on digital e-commerce and countless transfers of chip design data between countries, raising costs and exacerbating chip shortages. '' warned Prime Minister Modi.
WSC points to Prime Minister Modi's $10 billion semiconductor incentive package, which he says is aimed at advancing Indian industry through a “giant leap forward” in its mission to become a technology superpower, and the tariffs. Mr. Modi warned that the push could crush the world's semiconductor leader. dream. Research suggests that India should offer tax incentives on chip design data, rather than potentially imposing tariffs on it. This includes findings released earlier this year after the Semiconductor Industry Association and the Indian Electronics and Semiconductor Association commissioned a report from the Information Technology Innovation Foundation (ITIF). […] India and other developing countries may seek to narrow the moratorium rather than end it. “These issues need to be discussed and resolved” before India decides whether to extend the moratorium, an Indian government official told Reuters.