Taiwan’s Top Tech Firms To Ditch China And Set Up Their Production Hubs In India – News18

Taiwanese technology firms have made a significant decision to relocate their manufacturing bases to India, signalling a strategic move in response to growing tensions with China. This development has attracted widespread attention as Taiwanese companies seek to diversify their supply chains and mitigate potential risks associated with the uncertain geopolitical landscape. The decision marks a pivotal moment in the evolving dynamics between Taiwan, China, and India, with implications that extend beyond the realm of technology and manufacturing.

Kao Shien-Quey, Taiwan’s National Development deputy minister, mentioned that there are huge opportunities for collaboration between the capitals of Taipei and New Delhi, specifically in the area of emerging and critical technologies, which also includes the manufacturing of electronic equipment and semiconductors. They are looking at India as a key destination for Taiwanese technology, which will play a huge role in building up their global supply chains. He also mentioned that Foxconn, situated in Taiwan, has launched one iPhone manufacturing plant in Tamil Nadu, and they are planning to set up another manufacturing plant in Karnataka as well. The bilateral trade between Taiwan and India has grown from 2 Arab dollars in 2006 to 8.9 Arab dollars in 2021.

Taiwanese companies that have been operating in China are considering decoupling the global supply chain and also maintaining it for domestic customers. India is considered to be a crucial country, as described in the ASEAN Studies Centre at the Chung-Hua Institution of Economic Research by the director Kristy Tsun-tzu at the premier policy think-tank Taiwan. In the face of Washington’s trade disputes with the Chinese Military’s increased muscle flexing and Beijing around Taiwan, the leading Taiwanese companies are progressively looking to relocate their production bases from China to different countries in North America, The United States, and Europe. After US House Speaker Nancy Palosi’s visit to the island last year in August, the relationship is increasingly drawn between Taiwan and China.

India is poised to become home to the world’s largest chipmaker, as leading Taiwanese chip producers, including Taiwan Semiconductor Manufacturing Corporation (TSMC), renowned for its collaboration with Apple, plan to establish production facilities in the country. This collaboration between the semiconductor and information and communication industries will foster an incredible synergy within the global supply chain while aligning with India’s “plus one” strategy to diversify from China. Two industrial parks in India will exclusively host the production bases of these prominent Taiwanese companies, further boosting India’s technological prowess.