India is actively seeking investment from Taiwanese chipmakers and has deployed officials to assure them of policy stability in an effort to strengthen its semiconductor ambitions.
Senior officials from the IT Ministry have met with industry executives and government officials in Taipei, emphasizing India's continued support for investments in the chip sector and promising no ad-hoc changes to import rules or customs duties.
This outreach is particularly crucial as Taiwan is home to leading chipmakers like Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC).
However, Taiwanese businesses and government officials have adopted a cautious approach due to concerns over India's policy environment, including issues like cumbersome administrative processes, lack of experienced engineers, and high tariffs on electronics component imports.
Despite these challenges, India's chip incentive plans are aimed at boosting all aspects of the semiconductor ecosystem, including packaging, assembly, testing facilities, and full-scale foundries.
The first commercial fab in India, operated by Tata Electronics in Gujarat with technology support from Taiwanese chipmaker PSMC, is expected to start operations soon.
New Delhi hopes that consistent engagement with Taiwanese firms and the government will lead to more substantial investments in the future, potentially involving equity partnerships or independent operations in India.
Taiwanese officials have acknowledged the potential for collaboration and have indicated that major Taiwanese technology giants are considering India as a key destination to strengthen their global supply chains.
However, for significant investments to materialize, India will need to address the concerns raised by Taiwanese stakeholders and create a more conducive policy environment.
Streamlining administrative processes, developing a skilled workforce, and rationalizing tariffs will be critical in attracting investment from Taiwan's leading chipmakers.
