Indian Defense
India And Taiwan Discuss Chip Shortage, May Bring Fabs To The Country
India and Taiwan are in talks on chip shortage resolving deal
As per reports, the Indian and Taiwanese government officials met recently to negotiate a proposal that would bring a chip facility worth $7.5 billion to India.
As the chip shortage issue is expected to stretch into 2023, India and Taiwan are in talks on a deal that may bring chip production to the region, as well as tariff reductions on components used to make semiconductors by the end of the year. It is believed that this move might rekindle tensions with China.
In 2018, India and Taiwan inked a bilateral investment agreement to increase revenue and strengthen economic connections between the two countries. The trade between the two countries totalled $5.7 billion in the year 2020.
According to the latest report by Bloomberg, people familiar with the discussion stated that Indian and Taiwanese government officials met recently to negotiate a proposal that would bring a chip facility worth $7.5 billion to India, which would lead to the supply of everything, including 5G devices and electric cars.
As per the report, the sources said that India is currently looking at prospective places with enough land, water, and manpower. It has been stated that the authorities will fund 50 per cent of construction expenditures starting in 2023, as well as providing tax benefits and other incentives.
The Taipei officials hoped to move quickly on a bilateral investment pact that would involve tariff reductions on dozens of semiconductor-related products, as a prelude to a broader trade agreement that is also being considered, claimed sources. However, the details about the discussions between both countries haven’t yet been revealed officially.
The alleged discussion among the Indian and Taiwanese officials has its own significance in the context of China, as to counter an increasingly assertive country, democracies throughout the world are strengthening their economic and military ties.
According to a Bloomberg report, a senior Indian government official earlier said that Taiwan, which Beijing claims to be its own territory, has sought trade talks with India for several years, but the central government has been hesitant to move forward because it would involve a messy fight with China once any pact is registered at the World Trade Organization (WTO).
However, as the United States President Joe Biden aims to shore up chip supplies, establish supply networks across democracies and increase military capabilities in the region, the discussions have warmed up in recent weeks. Recently the American President has also hosted Indian Prime Minister Narendra Modi, as well as the leaders of Australia and Japan, to counter China’s influence, as part of the Quad Summit 2021.
However, since a protracted border confrontation in 2020, India has taken a more assertive attitude against China. According to reports, India and Taiwan are establishing the framework for a comprehensive trade agreement spanning commodities, services and investments. Meanwhile, officials in Taipei are attempting to alter the investment agreement in order to demonstrate early progress.
As it aims to become more self-reliant on chips, India has pushed to attract high-tech investments, while Taiwan seeks to enhance its diplomatic footprint around the world as it pushes back against Chinese pressure.
The discussion is happening at a time when experts highlighted the fact that several manufacturers of domestic appliances and consumer electronics who use chips as inputs are currently experiencing capacity constraints and expect upcoming product launches to be delayed.
The Consumer Electronics and Appliances Manufacturers Association (CEAMA) President Kamal Nandi said: “The industry might run short of controllers owing to shortages of semiconductors and other electronic components. Keeping in mind the surge in demand during festive, we have taken appropriate measures to mitigate the near-term risks.”
The concerning chip shortages have pushed back the release of Indian business tycoon Mukesh Ambani’s Reliance Industries Ltd.’s smartphone, which was co-engineered with Google. The issue also impacted automobile production, and it is predicted that in India the supply shortage would further impact passenger vehicles sale volumes in September.
India now imports all semiconductors to meet demand, which is expected to reach $100 billion by 2025, up from $24 billion now.
As per the Bloomberg sources, Taiwan has welcomed collaboration between the two countries on semiconductors, but it is still reviewing the idea because of a lack of ecosystem for building up a chip production unit in India.
It was also reported that the Taiwanese officials had expressed concerns about water, as well as electrical availability, and has indicated that it could be more practical for India to start developing a chip design business before establishing production plants.
Indian Defense
INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’
The solid-fuelled K-4 missile is being developed by DRDO to arm the country’s nuclear-powered submarines in the shape of INS Arihant and its under-development sister vessels. INS Arihant, which became fully operational in November 2018 to complete India’s nuclear triad, is currently armed with the much shorter K-15 missiles with a 750 km range.
“The K-4 is now virtually ready for its serial production to kick-off. The two tests have demonstrated its capability to emerge straight from underwater and undertake its parabolic trajectory,” said a source.
India has the land-based Agni missiles, with the over 5,000-km Agni-V inter-continental ballistic missile now in the process of being inducted, and fighter jets jury-rigged to deliver nuclear weapons. But INS Arihant gives the country’s deterrence posture much more credibility because nuclear-powered submarines armed with nuclear-tipped missiles are considered the most secure, survivable and potent platforms for retaliatory strikes.
Once the K-4 missiles are inducted, they will help India narrow the gap with countries like the US, Russia and China, which have over 5,000-km range SLBMs. The K-4 missiles are to be followed by the K-5 and K-6 missiles in the 5,000-6,000 km range class.
The 6,000-ton INS Arihant, which is propelled by an 83 MW pressurised light-water reactor at its core, in turn, is to be followed by INS Arighat, which was launched in 2017. The next generation of nuclear submarines, currently called S-4 and S-4*, will be much larger in size.
Indian Defense
After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%
India has received clearance to upgrade 84 Sukhoi Su-30MKI fighter jets, which will result in 78% indigenization after the upgrade
In a significant step towards bolstering its military might with indigenously developed technology, India is poised to witness its Russian-origin Sukhoi Su-30MKI fighter jets evolve into a domestic platform. Speaking at a recent lecture.
The upgrade program is being led by Hindustan Aeronautics Limited (HAL) in partnership with the Indian Air Force and other partners. The upgrade is expected to cost US$7.5 billion.
This initiative is a part of a larger effort by the Indian Air Force to modernize its ageing fleet. Air Chief Marshal Chaudhari asserted the critical role of an offensive air force as demonstrated in current global conflicts and emphasized India’s move towards an indigenized arsenal. To this end, the IAF has been proactive, from upgrading its Mirage 2000 to enhancing its MiG-29 fleet.
In summary, the IAF’s commitment to updating their combat forces with the latest technology, including shifting to fifth-generation fighter jets, ensures operational preparedness and a strong deterrence capability. The gradual indigenization of its air fleet marks a pivotal shift in India’s defence landscape, reducing dependency on foreign imports and fostering technological sovereignty.
Indian Defense
Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace
According to unconfirmed reports, Armenia is a top contender for an export order for Akash SAM system manufactured by Bharat Dynamics Limited (BDL).
The Akash export version will also be slightly different from the one inducted by the armed forces. The 100-km range air-to-air Astra missiles, now entering production after successful trials from Sukhoi-30MKI fighters, also have “good export potential”, said sources.
Akash is a “tried, tested and successfully inducted systems”. Indian armed forces have ordered Akash systems worth Rs 24,000 crore over the years, and MoD inked a contract in Mar 2023 of over Rs 9,100 crores for improved Akash Weapon System
BDL is a government enterprise under the Ministry of Defence that was established in 1970. BDL manufactures surface-to-air missiles and delivers them to the Indian Army. BDL also offers its products for export.
Akash Weapon System
The AWS is a Short Range Surface to Air Missile (SRSAM) Air Defence System, indigenously designed and developed by Defence Research and Development Organisation (DRDO). In order to meet aerial threats, two additional Regiments of AWS with Upgradation are being procured for Indian Army for the Northern borders. Improved AWS has Seeker Technology, Reduced Foot Print, 360° Engagement Capability and improved environmental parameters.
The project will give a boost to the Indian missile manufacturing industry in particular and the indigenous defence manufacturing ecosystem as a whole. The project has overall indigenous content of 82% which will be increased to 93% by 2026-27.
The induction of the improved AWS into the Indian Army will increase India’s self-reliance in Short Range Missile capability. This project will play a role in boosting the overall economy by avoiding outgo of precious foreign exchange to other countries, increasing employment avenues in India and encouraging Indian MSMEs through components manufacturing. Around 60% of the project cost will be awarded to the private industry, including MSMEs, in maintaining the supply chain of the weapon system, thereby creating large scale of direct and indirect employment.
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