Opportunities for India and South Africa in the wake of Trump’s trade war

US PRESIDENT Donald Trump’ trade war with China has put the global economy into a tailspin but amid the instability and uncertainties, there are windows of opportunity for countries like India and South Africa, especially in the semiconductor, IT, and AI sectors.

- Fawzia Moodley

The trade war is significantly affect-ing the tech and the semiconductor industry in particular, by disrupting global supply chains and increasing production costs leading to possible shifts in manufacturing hubs.

India’s semiconductor industry has been growing rapidly with strong sup-port from the government, and New Delhi has ambitions to compete with countries like Taiwan, China, South Korea, the US, and Japan, the dominant players in the semiconductor space.

With a projected 15% CAGR lead-ing to a $108 billion semiconductor industry by 2030, the sector in India is poised for a boom.

South Africa has a nascent semi-conductor industry, which is involved in both export and import activities. The South African government sees the semiconductor sector as strategically important and is encouraging invest-ment, local manufacturing, and skills development.

The South African semiconductor chemicals market is projected to expe-rience growth, with a CAGR of 7.3% from 2025 to 2030, reaching a revenue of USD 129.9 million by 2030.

With the noose tightening around China’s tech and related sectors as a result of Trump’s Trade War, and the imposition of exorbitant tariffs, alter-nate sources of semiconductors, Infor-mation Technology, and AI products must be found.

This scenario calls for increased trade and investment in the tech sector as countries scramble for alternative markets and suppliers.