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Taiwan, India – The Dawning Semiconductor Mingle

There are few countries which has a major role in semiconductor manufacturing Taiwan, Japan, United States, China and a few European states.

Taiwan-IndiaSemiconductor, the major part of the digitalized era has been facing challenges for last few years. Everything from microwave ovens to air conditioners and fitness trackers to computers uses semiconductor chips. There is a huge process of manufacturing semiconductor chips. The process includes chip design, electronic design automation, intellectual property, fabrication, assembly, equipment, wafers, and chemicals, etc. For that entire process, few countries are dependent on each other. There are few countries which has a major role in semiconductor manufacturing Taiwan, Japan, United States, China and a few European states.

The chip shortage was an already global issue and the Russia-Ukraine conflict has added fuel to the fire. Although, Indian government has taken several initiatives and PLI schemes, but nothing much has changed yet. The agenda of the Indian government is instead of importing products from other countries manufacture it here only.

With an agenda to provide 100 million manufacturing jobs by 2022, the government has announced Rs 76,000-crore incentive package. India’s ultimate ambition today is to undoubtedly become a major player in the global semiconductor supply chain. While India has previously expressed interest in growing semiconductor production, this is the first time that such a robust plan is being put into action.

Taiwan-India Deal

From last few months, Taiwan and India have been developing a robust economic relationship. Last year in December, both countries initiated a deal that focus on making India a semiconductor manufacturing hub.

Chip ShortageAccording to Taiwan envoys to India, bilateral trade hit new records in 2021 at over $7 billion, and over 120 Taiwanese companies are operating in India with cumulative investments over $2.3 billion. This year, the State Bank of India raised $300 million issuing Taiwanese “Formosa bonds,” the first Indian commercial entity to do so.

In order to continue this relationship, Taiwan has announced a plan to 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 meeting will be focused on chip manufacture 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),” a news portal mentioned.

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 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.


Nitisha Dubey

I am a Journalist with a post graduate degree in Journalism & Mass Communication. I love reading non-fiction books, exploring different destinations and varieties of cuisines. Biographies and historical movies are few favourites.

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