China-Taiwan: Taiwanese companies can consolidate business from China, India will become production center.
Amidst the tussle with China, major Taiwanese companies want to make India a production center by incorporating their business from the Chinese market. While the tension between Taiwan and China is increasing continuously on the issue of autonomy, Beijing’s border dispute with India has also deepened for the past few years. If the plan materialises, China will face a big blow on the economic as well as diplomatic front.
Taiwan’s Vice Minister of National Development Cao Hsien-qiu said there is great potential for cooperation between India and Taiwan in emerging and important technology sectors, including semiconductor and electronics equipment manufacturing. Talking to a group of international journalists, he said that major Taiwanese technology giants are looking at India as a major destination to strengthen their global supply chains. The trade between India and Taiwan was $2 billion in the year 2006, which has increased to $8.9 billion by the year 2021.
India is important for Taiwan
Major Taiwanese companies operating from China are moving their global supply chains from Beijing while maintaining supplies for their domestic needs, said Christy Sun-Ju Hsu, director of the Center for Taiwan ASEAN Studies at the Chung-Hua Institution for Economic Research. want to separate.
These companies are constantly thinking of shifting their production centers from China to Europe, America and India. The Indian economy is large, which can give Taiwan an opportunity to change business relations with China.
India showed interest in semiconductor and other products
India has also shown interest in major Taiwanese producers, including Taiwan Semiconductor Manufacturing Corporation (TSMC), the world’s largest chip maker. TSMC’s customers include iPhone maker Apple. In the context of the restoration of global supply chains and the China Plus One strategy, I am confident that the two countries’ partnership in the semiconductor and information industries will gain momentum, Xien-qiu said. China encourages companies to do business worldwide under Plus One, but the production center wants to maintain its own country.
Has presence in Tamil Nadu and Karnataka…
Apple’s biggest supplier Foxconn already has a manufacturing unit in Tamil Nadu. The company is now set to start production of iPhones from Karnataka by April next year. Two exclusive industrial parks are being developed in India for Taiwanese companies.
