According to a report, the demand of chips in India is expected to augment from the current USD 2 billion to USD 100 billion by 2025
For quite a time, there were several rounds of discussions between Taiwan and India, which are now afoot. Both countries have begun negotiations with the main intention being to begin the semiconductor manufacturing cluster in India by a Taiwanese company. A fortunate alliance between the two countries would appear as a sign of consolation for both India and Taiwan because the latter is trying effortlessly to move its trade outside China and the former wants to establish itself as a pioneer in international semiconductor manufacturing.
Both the countries have already signed a historical Bilateral Investment Agreement back in 2018 in order to promote flow of investment between the two countries. In fact, Taiwan’s ‘Southbound Policy’ and India’s ‘Act Ease Policy’ would further fortify the economic or the financial structures between the two nations. In order to enhance mutual cooperation, the idea is to follow the footsteps of several South Asian and Asian countries like Taiwan, South Korea, and Japan to barricade and remove investments out from China, which will also decrease the dependency on China. Now, the agreement signed between Taiwan and India would perk-up protection for Taiwanese investments in accordance with the international standards, and also rights and safety of Taiwanese investors in India.
Now, there are some escalating tensions between China and Taiwan. For the latter, China acts as the largest import source and export destination. The major problem for Taiwan is lack of availability of skilled labour that forced the country to commence its manufacturing units in China’s soil. This decision overtly contributed to Taiwnese import value from China only and currently, the island country has been confronting numerous military and political stiffs from China. This dominance of China has forced Taiwan to set-up ties with other countries and its aim to begin a semiconductor manufacturing cluster in the US.
Taiwan’s chief strength and power lies in sophisticated electrical equipment and machinery. This fact is well-known by India as it wants to grab the benefits of these items. India’s aspirations for growing its semiconductor industry would appear a reality as it advances and expands both technologically and financially. According to a report, the demand of chips in India is expected to augment from the current USD 2 billion to USD 100 billion by 2025.
Some reports also stated that a couple of locations have been identified by the government of India for beginning the manufacturing units. United Microelectronics Corporation (UMC) and Taiwan Semiconductor Manufacturing Company (TSMC) have possibly appeared to carry out the implementation of the venture and if it gets finalized the nation would turn into the second biggest semiconductor manufacturing hub for Taiwan after the US.
