India, now a player in space race as well, is an untapped resource of semiconductors and rare – earth elements.
In the realm of chip design, India and China share similar capabilities and levels of engagement with their domestic business “ecosystem”. Nonetheless, there used to be a fundamental distinction between the two nations. China boasted numerous independent chip design companies, whereas India primarily offered design-related services. This contrast is gradually shifting and will continue to evolve in the future as India struggles to regulate and incentivize innovation and investment effectively in that industry.
Most importantly, India does have reserves of rare-earth elements underground. Rare-earth elements are a group of 17 chemically similar elements that are crucial for various modern technologies, including electronics, renewable energy, and defense applications. India possesses significant reserves of rare-earth minerals such as monazite, bastnaesite, xenotime, and others. These minerals are typically found in beach sands, placer deposits, and certain types of rocks. India’s rare-earth resources are concentrated primarily in the coastal states of Andhra Pradesh, Odisha, Tamil Nadu, and Kerala.
India has been working to develop its rare-earth mining and processing capabilities to reduce its dependence on imports for these critical elements but, if this crucial goal is achieved, India will be well in its way to become a global exporter of semiconductors.
