Taiwan's India moment leads to deeper manufacturing links
By siliconindia | Friday, 04 November 2022, 02:10:59 PM IST
Taiwan has renewed its thrust to deepen manufacturing ties with India.
This comes amid heightened tensions with China and a US-driven effort to look at alternatives to Beijing in setting up factories for products ranging from smartphones to aeroplanes.
A Taiwanese delegation led by its deputy economic affairs minister Chern-Chyi Chen arrived in Delhi on Wednesday; and is “expected to go to important cities, including Chennai,” a ministry official aware of the tour plan of the delegation said.
The delegation also has members from Taiwan’s trade body Chinese National Federation of Industries.
Addressing a meeting of Indian and Taiwanese industrialists in Delhi on Thursday, Chen said Taiwan was looking to partner with India with a renewed focus.
“Our companies tend to be small and medium enterprises. 97% of our economy is supported by these small and medium enterprises. Secondly, our companies tend to be very quick at technology and work in the business model of OEM. Taiwanese companies’ business model requires the utmost trust from customers,” Chen said.
Taiwan’s focus on partnering with India comes at a time when tensions between it and China are at an all-time high. The friction peaked after the People’s Liberation Army (PLA) conducted military drills following the recent visit of Nancy Pelosi, the Speaker of the US House of Representatives, to Taiwan, which China views as a breakaway province.
Sources said the Taiwanese industrial delegation has representatives from large manufacturers - Foxconn and Pegatron - and other industry associations.
“For the industry, the interests are primarily from two sources: Taiwanese business interests are dependent on China, and they wish to change that; and secondly, the US’s stand vis-à-vis China has also been adversarial,” an official said.
Taiwan-India ties have grown organically over the years since the establishment of economic and cultural centres in New Delhi and Taipei nearly three decades ago.
Bilateral trade touched $5.7 billion by end-2020, according to Invest India, a government-run investment promotion agency.
Industry experts view Taiwan’s strong focus on bilateral ties favourably and believe that the visit is “an extremely positive development for India”.
“Taiwan is actively strengthening ties in electronics and several areas. So far, Taiwanese companies have not focused on engaging with the product development and R&D talent of India. I am sure they would soon move forward in that direction,” HCL cofounder Ajai Chowdhry, a veteran of the electronics manufacturing industry, said.
As per earlier report, Foxconn chairman Young Liu would visit India for a second time to meet Prime Minister Narendra Modi, amid a serious attempt to hold the ground-breaking within this year for the Vedanta-Foxconn joint venture to make semiconductor chips in Gujarat.
Tamil Nadu has so far bagged two of three Taiwanese firms - Foxconn and Pegatron - making iPhones in India.
A senior government official said that Tamil Nadu was in talks with Foxconn for many projects including on electric vehicles, for which “Tamil Nadu has shown it’s a leading state”.
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