India a Key Hub To Bolster Supply Chain For Taiwanese Tech Firms

CIOTechOutlook Team | Monday, 03 July 2023, 02:45 IST

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Leading Taiwanese technology companies are considering moving their manufacturing bases to India as a way to reduce their exposure to the Chinese market amid rising conflict. Major Taiwanese technology companies, according to Deputy Minister for Taiwan's National Development Kao Shien-Quey, are considering India as a critical location to expand their worldwide supply chains.
 
"There is huge scope for collaboration between New Delhi and Taipei in areas of emerging and critical technologies including manufacturing of semiconductors and electronics equipment," according to sources.
 
India is a significant country for Taiwan, according to Kristy Tsun-tzu Hsu, the director of the top policy think tank Taiwan ASEAN Studies Centre at the Chung-Hua Institution of Economic Research. She also stated that Taiwanese businesses operating in China are considering "decoupling" the global supply chain from China while keeping it intact for domestic consumers.
 
Leading Taiwanese corporations are considering moving their production bases from China to countries in Europe, North America, the US, and India due to Washington's trade battle with Beijing and the Chinese military's increased muscle flexing near Taiwan.
 
Following US House Speaker Nancy Palosi's visit to the island in August of last year, tensions between Beijing and Taipei have gotten worse. The world's largest chipmaker, Taiwan Semiconductor Manufacturing Corporation (TSMC), whose customers included Apple, is interested in opening production facilities in India.
 
"With the larger context of global supply chain restructuring and the 'China plus one' strategy, I am sure that we will see an acceleration of collaboration between the two sides in the field of semiconductor and information and communication industry," Shien-quey said.
 
A significant number of Taiwanese businesses will establish production facilities at two industrial parks in India that are being built specifically for Taiwan's top corporations.
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