The International Semiconductor Consortium (ISMC) has urged India to revisit its plan to impose tariffs on cross-border digital commerce and data transfers ahead of the World Trade Organization meeting. ISMC warned that India’s strategic location could slow the growth of the semiconductor sector. This understanding comes from Reuters reporting.
The WTO gathering is set to convene in Abu Dhabi early next week. A key topic on the agenda is whether to extend the moratorium on taxes for electronic data transfers, a policy in effect since 1998.
Emerging economies, including India, South Africa, and Indonesia, plan to resist the United States and European pushes to prolong the moratorium. With the current agreement due to expire in 2024, ISMC argues that ending the moratorium would raise costs and worsen the ongoing chip supply constraints.
Meanwhile, Foxconn, which opened the month as the leading chip producer, has faced a disappointing forecast for 2024. The ongoing shortage of semiconductors for artificial intelligence servers is expected to persist into the next year.
Earlier disclosures indicated that Amazon founder Jeff Bezos intends to divest roughly 50 million shares of the e-commerce giant in the near term.