Taiwan
Overview
ICEA’s vision for India-Taiwan coordination in electronics and semiconductor manufacturing
India and Taiwan have been strengthening their ties in the electronics manufacturing sector over the last decade. Taiwan, a global leader in electronics and semiconductor manufacturing and supply chains, has found a strategic partner i.e., India, which is emerging as a manufacturing hub with a growing demand for electronic goods.
ICEA has been relentlessly working for so many years, to realise the existing state of play. The mega investments by Foxconn, Pegatron, Wistron, Foxlink and many more is the outcome of ICEA’s efforts to strengthen collaborations between the two countries.
Leveraging on complementary strengths these two nations can write an unprecedented success story in electronics and semiconductor manufacturing.
In light of the ever-changing geopolitics, the two nations have proven themselves as trusted partners of each other and are looking forward to future collaborations in the domain of electronics and semiconductor manufacturing.
Taiwan's Technological Leadership: Taiwan is a global leader in semiconductor production, precision manufacturing, and advanced electronics. It is home to companies like Taiwan Semiconductor Manufacturing Company (TSMC), Foxconn, and Pegatron, which are at the forefront of innovation in electronics. India's growing demand for electronics, including semiconductors, smartphones, and consumer electronics, aligns well with Taiwan’s manufacturing expertise.
India's Market Potential: India has one of the largest and fastest-growing electronics markets in the world. It also has a strong labour force, lower labour costs, an expanding consumer base and strong intent of Indian government & industry to better align with the manufacturing competencies of Taiwan. This provides Taiwanese companies with a significant opportunity to scale up production and reach new markets.
There is great scope for further coordination in the domain of:
Semiconductor Manufacturing: One of the most significant areas of future collaboration between India and Taiwan lies in the semiconductor industry. India aims to become a key player in the semiconductor supply chain, and Taiwan’s expertise in manufacturing and chip design is vital to this objective. In the future, Taiwanese companies could play a key role in establishing semiconductor fabrication units in India. Taiwan has already expressed interest in collaborating with India to build a robust semiconductor ecosystem, and this collaboration will surely intensify.
Advanced Electronics and 5G: With the global push for 5G networks and advanced technologies like AI, IoT, and robotics, India offers a huge market and potential for collaboration. Taiwan is already a leader in the development of technologies and electronic devices. This expertise could be integrated with India’s manufacturing prowess.
Research and Development (R&D): Indian universities and research institutions are making strides in electronics, materials science, and AI. Taiwanese companies could further collaborate with India’s R&D institutions to co-develop new technologies in areas like semiconductor manufacturing, renewable energy solutions, and automotive electronics.
Building Regional Supply Chains: Taiwan's strong position in the global electronics market, coupled with India’s growing role in manufacturing, positions the two countries to create a regional supply chain for electronics that could rival those in East Asia. This would be especially critical in the context of shifting supply chains and geopolitical tensions in the Asia-Pacific region, offering both nations an opportunity to reduce dependency on other markets like China.
ICEA is working closely with TEEMA, TAITRA, PIDA, and other prominent industry associations in Taiwan to develop strategic alliances in the domain of electronics and semiconductor manufacturing. The collaboration between India and Taiwan in the electronics manufacturing sector is expected to grow significantly in the coming years. With Taiwan’s technological expertise and India’s large consumer market, both countries stand to benefit from closer ties in sectors like semiconductor manufacturing, consumer electronics, and 5G infrastructure. The future of this collaboration will likely revolve around enhancing technological capabilities, developing efficient supply chains, and addressing the challenges related to geopolitical tensions and workforce skills.
