The US President’s recent decision to impose a steep 50 per cent tariff on copper imports has raised alarm across global supply chains, with India’s electronics and semiconductor industries expressing deep concern over its potential impact.
While the move is designed to boost domestic copper production in the United States, Indian industry leaders warn of ripple effects that could disrupt India’s own chip and electronics manufacturing ambitions, particularly under the country’s semiconductor mission.
Copper, a critical input in the production of printed circuit boards (PCBs), wiring, connectors, and semiconductor packaging, is largely imported in high-purity forms that domestic suppliers like Hindustan Copper, Hindalco, and Sterlite do not produce at scale or quality suitable for advanced manufacturing.
According to the India Electronics and Semiconductor Association (IESA), global trade disruptions and rising prices could pose a serious bottleneck to India’s nascent chip manufacturing ecosystem. The IESA president urged the government to not only streamline import norms and Bureau of Indian Standards (BIS) certification but also ramp up domestic capabilities in producing semiconductor-grade copper and specialty alloys.
Despite having smelting and refining capacity, India remains dependent on imports, often from China, for high-purity and cost-effective copper. With growing global protectionism, industry insiders warn that delayed action could result in costlier components, eroding competitiveness and slowing momentum in critical semiconductor projects.
Moreover, India’s own regulatory steps, such as mandatory BIS certifications for imported copper, may also inadvertently raise costs and cause supply delays if not harmonised with global practices.
