Chip in now
Trump delaying tariffs on China while targeting India shows our lack of strategic tech and manufacturing
The chip war between US and China is back on the table with Washington reportedly working out a deal to take 15% from the sale of Nvidia's and AMD's AI chips to China. This effectively makes US govt a business partner to Nvidia and AMD, and comes after Washington allowed resumption of chip sales to China. The latter had been halted by Trump in April as part of his trade tussle with Beijing. However, he was forced to lift the ban after China retaliated with its own ban on rare earth exports to US.
Beijing has now sent notices to Chinese companies discouraging the use of Nvidia chips citing security concerns. Parallelly, however, US and China have decided to extend their tariff truce till Nov. This is in stark contrast to Trump's approach to India, which is now facing the prospect of 50% tariff on its exports to US.
The entire episode holds out two key lessons. First, the tech war is here to stay. Whether it's US chip sales to China or China trying to undermine tech manufacturing in India as highlighted by its recent pullout of Chinese engineers from Foxconn's India plants, this is a strategic sector that every country will try to leverage or weaponise. And with the advent of AI, India's expertise in software and coding is no longer that attractive. Therefore, India must not waver in its determination to master bedrock tech like semiconductor manufacturing and design, as well as AI. Countries like Estonia are integrating AI in their education systems. Plus, the recent spat between Elon Musk and OpenAI boss Sam Altman over listing in Apple's App Store shows how fiercely companies are competing over AI tech. India must not lag behind.
Second, Trump's targeting India with big tariffs because he feels it doesn't have anything strategic to offer. That's not the case with China given its manufacturing muscle. Similarly, Taiwan's cutting-edge semiconductor industry makes it vital to tech supply chains, and therefore, a prime candidate for tariff exemptions. India too needs to cement a crucial spot in global manufacturing by investing heavily in domestic R&D, technical education and AI. It's work that can't be delayed.
Facebook Twitter Linkedin Email
This piece appeared as an editorial opinion in the print edition of The Times of India.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
24 minutes ago
- Hans India
German Chancellor to travel to Washington for talks on Ukraine
German Chancellor Friedrich Merz will travel to Washington on Monday, joining Ukrainian President Volodymyr Zelensky and other European leaders for talks with US President Donald Trump, the German government announced on Sunday. According to a statement, the visit is for an "exchange of information" with Trump following his meeting with Russian President Vladimir Putin in the US state of Alaska on Friday, Xinhua News Agency reported. After the Alaska summit, Zelensky announced that he would meet Trump in Washington on Monday. Merz is expected to discuss the current state of peace efforts, the statement said, adding that security guarantees, territorial issues, and continued support for Ukraine will be addressed. Earlier on Saturday, Trump held a telephonic meeting with the European leaders and Ukraine's Zelensky to brief them on his discussions with the Russian President in Alaska. Following the meeting, Presidents Trump and Putin said that they made progress in three hours of talks on Friday, moving closer to finding an end to the Ukraine War, but did not announce an immediate ceasefire. Meanwhile, the US President took to his social media platform Truth Social on Saturday, calling the meeting with Putin in Alaska a successful one. 'A great and very successful day in Alaska! The meeting with President Vladimir Putin of Russia went very well, as did a late-night phone call with President Zelenskyy of Ukraine, and various European Leaders, including the highly respected Secretary General of NATO. It was determined by all that the best way to end the horrific war between Russia and Ukraine is to go directly to a Peace Agreement, which would end the war, and not a mere Ceasefire Agreement, which often times do not hold up," Trump posted. "President Zelensky will be coming to DC, the Oval Office, on Monday afternoon. If all works out, we will then schedule a meeting with President Putin. Potentially, millions of people's lives will be saved. Thank you for your attention to this matter!" the post added. European leaders including French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni, German Chancellor Merz, British Prime Minister Keir Starmer, Finnish President Alexander Stubb, Polish Prime Minister Donald Tusk, Portuguese President Antonio Costa, President of the European Commission Ursula von der Leyen welcomed President Trump's efforts to 'stop the killing in Ukraine, end Russia's war of aggression', and achieve just and lasting peace. 'As President Trump said, 'there's no deal until there's a deal'. As envisioned by President Trump, the next step must now be further talks, including President Zelensky, whom he will meet soon. We are also ready to work with President Trump and President Zelensky towards a trilateral summit with European support," read a joint statement issued by the European leaders after Saturday's phone call.
Time of India
38 minutes ago
- Time of India
Newly laid bund road to ease traffic on two busy roads in Coimbatore
The newly laid bund road. Photo by P Sreedharan COIMBATORE: The Coimbatore City Municipal Corporation has opened a new road from Lanka Corner Railway bridge to the Vincent Road Junction to ease traffic congestion on the Big Bazaar Road and Vincent Road. The road is said to reduce at least 30% of the vehicle flow heading towards Bazaar Street up to Ukkadam. The road, laid on the bunds of Valankulam Lake, terminates a few metres away from the Ukkadam- Sungam bypass roundabout. The one-way stretch of 805 meters is open to two vehicles and cars proceeding towards from the Government Hospital Road. This initiative is part of the city corporation's traffic management plan to have better mobility within the city limits. According to a corporation officer, "The road is about seven meters wide and can handle cars as well. Except for heavy vehicles, the rest of the vehicles heading towards Ukkadam can use this route. The entire day, irrespective of peak hours, the Vincent Road remains congested as too many vehicles use this narrow road as an alternative to reach Ukkadam. Hence from now on, those vehicles wouldn't have to take the Vincent Road. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo " Arfan Ahmed, who works at a garment store in Karumbukkadai, said, "Vincent Road would be completely congested during peak hours, especially in the evenings. Many people visit the eateries on this road, resulting in traffic. Also, it is the shortest route to reach Ukkadam flyover up ramp on the Sungam Bypass." The corporation is planning a similar alternative route along the Royal Theatre that will be connected to this newly laid bund road. The corporation official said, "To cater to the congestion caused by vehicles coming from the Goodshed Road that get through Vincent Road, a similar bund road has been planned along the Royal theatre. A study to prepare an estimate is under way." Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
41 minutes ago
- Time of India
‘Not off the table': Marco Rubio leaves door open for Ukraine-Russia ceasefire; urges negotiations toward permanent peace
Secretary of State Marco Rubio (File Photo) Secretary of State Marco Rubio on Sunday said that while the United States, Russia and Ukraine view a permanent peace deal as the best way to end the war, a temporary ceasefire between Ukraine and Russia is 'not off the table. ' 'It was agreed to by all that the best way to end this conflict is through a full peace deal,' Rubio said during an interview with NBC News. 'There's no doubt about that. I mean, who would be against the fact that tomorrow we came to you and said, 'We have a full peace deal, and it's done.' I think that's the best way to end the war.' 'Now, whether there needs to be a ceasefire on the way there, well, we've advocated for that,' Rubio added. 'Unfortunately, the Russians, as of now, have not agreed to that.' Rubio's comments came hours after President Donald Trump returned from Alaska, where he met with his Russian counterpart Vladimir Putin and a delegation of Russian leaders. Although Ukrainian President Volodymyr Zelenskyy and other officials were not present at the talks, US officials still expressed hope that progress could be made toward a ceasefire or eventual peace agreement. After the Alaska summit, Trump told reporters, 'There's no deal until there's a deal.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The 5 Books Warren Buffett Recommends You To Read in 2025 Blinkist: Warren Buffett's Reading List Undo Rubio placed the responsibility for stalled progress on Moscow, pointing to continued Russian strikes in Ukraine. 'We think usually it's very hard to negotiate when you're in the middle of hostilities. But that said, the only way to have a ceasefire is for both sides to agree to stop firing at one another ... and the Russians just haven't agreed to that,' he said. Zelenskyy is expected at the White House on Monday to meet with Trump and European leaders, including German Chancellor Friedrich Merz, UK Prime Minister Keir Starmer, Finland President Alexander Stubb, European Commission President Ursula von der Leye and Nato Secretary-General Mark Rutte. At a joint press conference with von der Leye in Brussels on Sunday, Zelenskyy said a ceasefire is crucial to advance peace deal negotiations. 'Putin has many demands, but we do not know all of them, and if there are really as many as we have heard about, then it will take a lot of time to go through all of them, and it is impossible to do this under the pressure of weapons," Zelenskyy told reporters. "So, it is necessary to stop the fire and work quickly on a final agreement. We will talk about this in Washington. Putin does not want to stop the killings, but he must do it. ' Rubio also defended the Trump administration's decision not to impose new sanctions on Russia, arguing that such measures could undermine ongoing peace efforts. 'If we're not going to be able to reach an agreement here at any point, then there are going to be consequences, not only the consequences of the war continuing, but the consequences of all those sanctions continuing, and potentially new sanctions on top of it as well. But what we're trying to do right now is end the war,' Rubio said during interview. 'I don't think new sanctions on Russia are going to force them to accept ceasefire. They're already under very severe sanctions," he added. The secretary of state said imposing new sanctions on Russia could undermine efforts to reach a lasting peace deal. He also defended the Trump administration's decision not to impose new sanctions on Russia, arguing that such measures could undermine ongoing peace efforts. Senator Chris Murphy, Democrat of Connecticut, had called Trump's meeting with Putin 'a disaster'. 'That meeting was a disaster. It was an embarrassment for the United States. It was a failure. Putin got everything he wanted,' Murphy said. 'Trump said, 'If I don't get a ceasefire, Putin is going to pay a price.' And then he walked out of that meeting saying, 'I didn't get a ceasefire. I didn't get a peace deal, and I'm not even considering sanctions,'' Murphy added. 'You heard Secretary Rubio downplay sanctions. And so Putin walks away with his photo op with zero commitments made and zero consequences. What a great day for Russia.'
