With India poised to become the next original manufacturing hub, more Taiwanese Information Communciation Technology suppliers may relocate to the country in the near future, Taiwan External Trade Development Council’s Deputy Executive Director Keven Cheng said on Thursday.
Notably, there is a huge scope for collaboration between New Delhi and Taipei in areas of emerging and critical technologies including manufacturing of semiconductors and electronics equipment.
Speaking with reporters on the sidelines of an event, Cheng said, “We think India would be the new original manufacturing hub… The PSMC just cooperated with Tata Electronics so we see more and more Taiwan ICT (information and communication technology) suppliers move into India”.
In February, the Union Cabinet chaired by Prime Minister Narendra Modi approved the establishment of three semiconductor units including one in Dholera, Gujarat involving an investment of Rs 91,000 crore, where Tata Electronics Private Limited will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp, Taiwan.
Asked whether he sees technology transfer happening between PSMC and Tata Electronics, Cheng said, ‘I think, definitely in the future, Technology Transfer … may be in the next 3-5 years,’ adding that it was a step-by-step process and depends on demand.
Responding to the agreement between the two nations signed earlier this year on mobility and migration, Cheng said he expects 1,000 Indian workers to move to Taiwan initially.
“We are glad to see this MoU because Taiwan needs labour, especially technical labour … In the beginning 1,000 people will move from India to Taiwan,” he shared.
In February, India and Taiwan signed a migration and mobility agreement that will facilitate the employment of Indian workers in diverse sectors in the self-ruled island, a move that is seen as reflective of the renewed momentum in the cooperation between the two sides.
Both sides were engaged in discussions over the pact for the last several years.
After all the preparatory work is completed, India will be announced as a ‘new source’ country of migrant workers in accordance with the law, the Taiwanese labour ministry said.
Taiwan’s source countries for migrant workers are Vietnam, Indonesia, the Philippines and Thailand. Cheng was addressing the media on the sidelines of an event regarding the 7th edition of the Taiwan Expo 2024, to be held here from July 8-10, 2024, after a five-year hiatus.
“From January to May 2024, the total trade volume between Taiwan and India grew by 25.8% compared to the same period last year, making India our 14th largest trade partner. This significant growth underscores the immense potential for Taiwan-India economic cooperation, particularly in electronics manufacturing, smart cities, and ICT sectors,” Cheng stated.
He said the Taiwan Expo aims to further consolidate and grow business opportunities by showcasing the latest products and solutions curated based on the most recent government policies, local market demands, and consumption trends.
“We hope to continue to build the best stage that promotes bilateral trade relations between both countries,” Chend added.
Taiwan Expo in India 2024 will feature over 120 companies showcasing more than 1,000 products from Taiwan.
