The goings-on at Nvidia, one of the most valuable companies in the world, have brought semiconductor geopolitics into sharp focus. China’s alleged use of invidious methods to gain access to cutting-edge technology—and the sharp reaction it’s provoking in the US—has raised concerns in other global capitals, including New Delhi, about the possible fallout.
On November 12, the US House Speaker claimed that a bipartisan consensus in Congress favoured restricting China’s access to advanced chips. Lawmakers are weighing tighter oversight of exports, systems to prevent diversion of AI processors to China and pressure on US allies to limit supplies of chip-making equipment. They also want to regulate Chinese companies’ remote access to advanced chips through overseas data centres. As scrutiny grows, even countries with no intention of helping China could find their access less predictable.
The stakes are considerable. Chips power everything from phones and computers to defence systems, factory machinery and critical infrastructure. The more advanced the chip, the greater the economic and military advantage it confers. This explains why the US-China rivalry is no longer just about tariffs, but about who gets access to the technology that will shape the future.
For India, this has important implications. Its plans to expand digital infrastructure and AI data centre capabilities depend heavily on hardware supplied by the US. On the other hand, broad retaliatory curbs by China, which dominates the supply of critical raw materials and rare earth magnets, would squeeze Indian manufacturing inputs. Tighter export rules could mean delays, higher costs and fresh uncertainty for Indian businesses. A country cannot exercise full control over its digital future if access to essential computing infrastructure depends on decisions taken elsewhere.
This does not mean India should distance itself from its technology partners. International cooperation, investment and access to global supply chains remain essential. But the risks of excessive dependence can’t be overlooked. India’s Semiconductor Mission, including manufacturing, design, research and advanced packaging, must gather greater momentum. Self-reliance cannot be achieved overnight—building an ecosystem requires sustained investment, a skilled workforce and technological partnerships.
The Nvidia episode shows how depending on other countries for vital technology can become a security risk. India must ensure that changes in global technology policies do not undermine its own ambitions.