India Weighs Letting Key Tech Trade Deal Lapse, Risking Worsening Chip Shortage

India plans to let a 1998 digital trade deal expire, which may worsen the global chip shortage and raise costs for the semiconductor industry.

World leaders will meet next week at a WTO meeting to potentially extend the moratorium before it expires in March. India is concerned about losing tax revenue.

A global semiconductor industry group warned India that ending the moratorium could dash India's plans to become a top global chip provider.

Studies suggest India should offer tax incentives, not impose duties that could raise chip industry costs.

Imposing duties may negatively impact India's efforts to advance its domestic semiconductor industry and global chip design workforce.