- Beijing’s border dispute with India is also deep
- India is well positioned to strengthen global supply chains
- India showed interest in semiconductors and other products
Amid tensions with China, major Taiwanese companies are looking to make India a manufacturing hub by integrating their business from the Chinese market. While tensions between Taiwan and China over the issue of autonomy continue to rise, Beijing’s border dispute with India has also deepened in recent times. If this plan comes to fruition, China will suffer a major blow on the economic and diplomatic front.
India is well positioned to strengthen global supply chains
Taiwan’s Vice Minister for National Development Kao Hsien-qi said there is great potential for cooperation between India and Taiwan in emerging and important technology sectors, including semiconductor and electronics equipment manufacturing. Speaking to a group of international journalists, he said that Taiwan’s major technology giants are eyeing India as a key destination to strengthen their global supply chain. Trade between India and Taiwan was $2 billion in 2006, which has increased to $8.9 billion by 2021.
India is important to Taiwan
Christie Sun-Ju Su, director of the Center for Taiwan ASEAN Studies at the Chung-Hua Institution of Economic Research, said major Taiwanese companies operating from China are shifting their global supply chains from Beijing while retaining supplies for their domestic needs.
These companies are constantly looking to shift their production centers from China to Europe, America and India. India’s economy is large, which could give Taiwan an opportunity to change trade relations with China.
India showed interest in semiconductors and other products
India has also shown interest in major Taiwanese manufacturers including Taiwan Semiconductor Manufacturing Corporation (TSMC), the world’s largest chip maker. TSMC’s customers include iPhone maker Apple. In terms of reestablishing the global supply chain and the China Plus One strategy, I am confident that the two countries’ partnership in the semiconductor and information industries will be boosted, Xien-qi said. China encourages companies to do business worldwide under Plus One, but wants to keep the manufacturing hub home.
Presence in Tamil Nadu and Karnataka…
Apple’s largest supplier Foxconn already has a manufacturing unit in Tamil Nadu. The company is now planning to start manufacturing iPhones from Karnataka by April next year. Two exclusive industrial parks are being developed in India for Taiwanese companies.
