Taiwan firms shift supply chains to India from China: Trade body chief

Taiwanese firms are increasingly moving their supply chains from China to India amid escalating global trade tensions, bolstering economic ties between Taipei and New Delhi. Chairman of the Taiwan External Trade Development Council, Mr. James Huang, highlighted a surge in Taiwan's foreign direct investment (FDI) in India, reaching over US$ 665 million in the 5 years leading up to 2023, compared to nearly US$ 277 million invested from 2006 to 2017.

He noted that Taiwanese companies are diversifying away from China by establishing operations in India, particularly in sectors such as mobile telephone assembly and footwear. Despite the absence of formal diplomatic relations between India and Taiwan due to China's claims over the island, economic cooperation has thrived, driven by India's interest in Taiwanese investments, especially in advanced manufacturing like semiconductor fabrication.

This strategic partnership has led to significant collaborations, including Taiwan's Powerchip Semiconductor Manufacturing Corp partnering with India's Tata Group to build Gujarat's first semiconductor facility under a US$ 10-billion incentive program. He also emphasized ongoing efforts to train Indian talents in Taiwan, particularly in semiconductor technologies, indicating promising prospects for future bilateral cooperation. Two-way trade between India and Taiwan reached US$ 10.1 billion in FY24, underscoring the expanding economic engagement between the two nations.

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