Notably, both sides are eyeing the possibility of one of Taiwan’s semiconductor giants, including TSMC and UMC, setting up a facility in India
Keeping up with its efforts to propel the chip manufacturing ecosystem in the country, India has reportedly initiated talks with Taiwan to help it achieve its goal and form a free trade pact, a report by Hindustan Times stated.
Citing sources familiar with the matter, the publication stated that the the two sides set up four groups earlier this year that are focusing on creating a semiconductor manufacturing hub, education and training of highly specialised manpower needed for the industry, a bilateral investment agreement and a free trade agreement.
Notably, both sides are eyeing the possibility of one of Taiwan’s semiconductor giants, including Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC), setting up a facility in India.
The Indian side has proposed several sites for the hub though the two sides are yet to come to a final decision, the people said.
This comes as the Centre cleared a Rs 76,000-crore design-linked incentive for semiconductor manufacturing earlier this week with the aim of developing chip production facilities in the country, an arena where rival China has gained much expertise and investments over the year.
“It is a very complicated process because a company like TSMC uses components from hundreds of other firms. Setting up a hub in India means convincing those firms to also set up a facility in India to ensure the supply of components,” one of the sources said.
If the proposal is finalised, it will be only the second such manufacturing hub set up in a foreign country by a Taiwanese manufacturer. TSMC, which has a market value of more than $550 billion and accounts for about 54% of global revenues from semiconductors, has set up a $12-billion fabrication plant in the US that is expected to start production in 2024. TSMC is also eyeing possible facilities in Japan and Europe.