India-Taiwan Semiconductor Collaboration Creating a New Face for India’s Semiconductor Sector
By R Anil Kumar
Cooperation with the Taiwanese companies provides invaluable technological support to India’s semiconductor industries, and the joint venture between PSMC and Tata Electronics is a promising beginning for further cooperation between India and Taiwan in upcoming years-Richard Chen, Director General of the Taipei Economic and Cultural Centre (TECC) in Chennai
Bengaluru, January 24. Taiwan manufactures around 63.8 percent of the world’s semiconductors, and its 2nm process technology is the most available advanced technology in the world.
Consequently, Taiwan remains the global leader in terms of both technology and productivity in the semiconductor industry.
According to sources, India and Taiwan are increasingly pursuing cooperative initiatives in this field—and India’s technical and skill development cooperation with Taiwanese companies and the Taiwanese government support is creating a new face for India’s semiconductor sector.
Notable Partnerships with Taiwan in India’s Semiconductor Industry
The Indian government, as well as different state governments, provide help to private entities to establish semiconductor fabs in India.
In this environment, the Taiwanese government and Taiwanese companies have become front runners in helping both Indian firms and the government.
Taiwan’s Powerchip Semiconductor Manufacturing Corporation and the Indian Company Tata Electronics have announced plans to invest USD $11 billion to build India’s first 12-inch wafer fab in Dholera, Gujarat.
This joint venture between an Indian and Taiwanese company has provided the foundation for India-Taiwan joint manufacturing of chips in India.
The new venture is directed towards the manufacture of power management integrated circuits (IC), display driver IC, microcontrollers, and high-performance computing logic components.
The partnerships and collaborations between India and Taiwan also encourages more cooperation and dialogue between Indian and Taiwanese companies.
Opportunities for Taiwan in India’s Semiconductor Industry
The government of India’s “Make in India” and “Design in India” initiatives encourages investors and manufacturers to start their operations in India with government support.
Moreover, the 2024 Union budget allocated ₹69.03 billion Indian rupees (INR) (USD $825 million) to the semiconductor sector and established a USD $12 billion innovation corpus for research and development.
India’s large market and ample workforce provides a growing opportunity for Taiwan and Taiwanese companies.
It is estimated that India has 20 percent of the world’s semiconductor design workforce, and its semiconductor market is expected to grow at a compound annual growth rate (CAGR) of 26.3 percent, to USD $271.9 billion by 2032. Taipei positions countries like India as strategic partners and encourages Taiwanese companies to invest in India. Along with the Indian government’s initiatives, initiatives from the Taiwanese government also provide Taiwanese companies with opportunities to benefit from India’s growing semiconductor market and growing workforce.
Geopolitical Implications for India-Taiwan Semiconductor Cooperation
India’s cooperation with Taiwan in the semiconductor sector carries significant geopolitical implications, particularly in the context of escalating tensions in the Indo-Pacific region.
The increasing collaboration between Taiwan and India in the semiconductor sector holds the promise of transforming India into a key player in the global chip manufacturing ecosystem. The mutual benefits of this partnership make it an essential part of India’s semiconductor ambitions.
With Taiwan’s advanced expertise and India’s determination to build a robust semiconductor industry, the partnership between these two nations could shape the future of global technology and manufacturing.
Cooperation with Taiwanese companies provides invaluable technological support to India’s semiconductor industries, and one such joint venture between PSMC and Tata Electronics is a promising beginning for further cooperation between India and Taiwan in the coming years.
Taiwan Excellence Unveils Next-Gen Manufacturing Tools at IMTEX 2025 to Boost India’s Industrial Evolution
Taiwan Emerges as a Key Player in India’s Machine Tool Market with 20.8% Growth. India becomes the fourth-largest importer of Taiwanese machine tools. In 2024, Taiwan’s machine tool industry capitalized on new opportunities in India, with exports increasing by an impressive 20.8% year-on-year, reaching US$145.87 million.
Mr. Richard Chen, Director General of the Taipei Economic and Cultural Centre (TECC) in Chennai said, India’s manufacturing sector is a global leader in machinery, automotive, and defense, undergoing a remarkable transformation with Industry 4.0 and IoT.
Taiwan is proud to be a trusted partner with India in this journey, offering advanced automation and machine tools solutions that enhance efficiency and align with the Make in India initiative, Chen stated.
