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Taiwan semiconductor makers to visit India to discuss cooperation

ByRezaul H Laskar and Rajeev Jayaswal, Hindustan Times, New Delhi
Jul 21, 2022 06:05 AM IST

Taiwan will send a high-profile delegation of semiconductor manufacturers to India to take forward cooperation in the crucial sector, including possible collaboration under New Delhi’s programme of production linked incentives (PLI) for large-scale electronics manufacturing

Taiwan will send a high-profile delegation of semiconductor manufacturers to India to take forward cooperation in the crucial sector, including possible collaboration under New Delhi’s programme of production linked incentives (PLI) for large-scale electronics manufacturing.

The visit will allow Taiwanese manufacturers to find out more about the Indian government’s semiconductor mission, announced last December. (Representational image)
The visit will allow Taiwanese manufacturers to find out more about the Indian government’s semiconductor mission, announced last December. (Representational image)

The visit by the Taiwanese delegation will be a follow-up to two visits from the Indian side and several meetings held since last year to discuss collaboration in making the chips required for electronics items, communications devices, health care systems, and motor vehicles, people familiar with the matter said.

“The delegation is expected to include representatives of top semiconductor manufacturers, including Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC),” one of the people cited above said.

The exact dates for the delegation’s visit are yet to be finalised, though it is expected to be in India in the coming weeks.

The visit will allow Taiwanese manufacturers to find out more about the Indian government’s semiconductor mission, announced last December, which envisages PLIs worth 76,000 crore or around $10 billion for the entire supply chain, including electronic components, subassemblies and finished goods, a second person said.

The Taiwanese manufacturers will also be able to gain first-hand knowledge of possible sites for setting up units in India and other local conditions, the second person said.

India and Taiwan had earlier held talks that linked a free trade agreement to the creation of a semiconductor manufacturing hub in the country. Last year, the two sides set up four groups that focused on creating a semiconductor hub, training of the highly specialised manpower needed for the industry, a bilateral investment agreement, and a free trade agreement.

Following the unveiling of the Indian government’s semiconductor mission with PLIs, the two sides have been looking at the issue afresh, the people said. The Indian side has identified possible locations for manufacturing units with adequate land, semiconductor-grade water and high quality power supply. India will also provide fiscal support of up to 50% for projects under its scheme for setting up semiconductor and display fabrication units.

An official aware of the development, while requesting anonymity, said the Indian side is looking at enhanced economic engagements with Taiwan for mutual gains.

“Some successful efforts have been made in the past in this direction. A high-level Indian delegation attended the India-Taiwan SME Development Forum at Taipei in November 2018,” the official said.

“Taiwanese firms are welcomed in India for both investments and technology transfers in sectors such as electronics, auto components and automobiles. Indian MSMEs can benefit from Taiwanese expertise in the bamboo sector. They can also contribute to India’s semiconductor sector,” the official added.

India exports naphtha, minerals, refined copper cathodes, ferrochromium, zinc, aluminium and pig iron to Taiwan, and imports poly vinyl chloride, flat rolled products of alloyed steel, electronic integrated circuit, accessories of machines, solar cells, digital cameras and voice transmission machines.

India and Taiwan established representative offices in each other’s capitals in 1995. A second Taipei Economic and Cultural Center was established in Chennai in 2012. Taiwan is India’s 16th largest trading partner and annual bilateral trade is worth about $7 billion.

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