New Delhi:- As relations between the autonomous island of Taiwan and China become increasingly strained, senior Taiwanese government policymakers have encouraged Taiwan's tech giants to move manufacturing to India to reduce their exposure to the Chinese market. said it was under consideration. Taiwan's Deputy Minister of National Development Kao Shien-Quey said there is great potential for cooperation between New Delhi and Taipei in the areas of emerging and critical technologies, including semiconductor and electronic device manufacturing.

He told a group of international journalists that Taiwan's big tech giants see India as a key destination for strengthening global supply chains. Christie Tsun-Tzu Su, director of the Center for Taiwan-ASEAN Studies at the China Institute for Economic Research, a major policy think tank, said India was an important country for Taiwan, saying that Taiwanese companies operating in China should "decouple" from the rest of the world. said he was aiming for Maintaining supply chains for this country while maintaining supply chains for domestic consumers.

Against the backdrop of trade friction between the United States and China and the expansion of Chinese military presence in Taiwan, major Taiwanese companies are increasingly considering moving their manufacturing bases from China to countries in Europe, North America, the United States, and India. Relations between China and Taiwan have become increasingly strained since U.S. House Speaker Nancy Pelosi visited Taiwan last August.

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India is interested in manufacturing facilities of major Taiwanese chip makers, including Taiwan Semiconductor Manufacturing Corporation (TSMC), the world's largest chip maker with customers such as Apple. "Given the broader context of global supply chain restructuring and the 'China plus one' strategy, I am confident that cooperation between the two countries will accelerate in the areas of the semiconductor and information and communications industries," Shien-quey said.

They know that a significant number of Taiwanese companies will set up manufacturing bases in two industrial parks in India that will be built exclusively for Taiwan's leading industries. Negotiations are in the final stages for Taiwanese chipmakers to set up manufacturing facilities in India, officials said unanimously.

Taiwan produces nearly 70 percent or more of the world's semiconductors and more than 90 percent of the cutting-edge chips needed for nearly every electronic device, including smartphones, auto parts, data centers, fighter jets, and AI technology.

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The "China Plus One" strategy aims to encourage companies to expand their operations outside of China while maintaining their presence in China. "They are actively encouraging Taiwanese companies to diversify their manufacturing bases, and we want them to move their manufacturing bases to other countries with similar values," said Mr.

Tung Tzu Su said he believed India's economy is large and could offer Taiwan an opportunity to change its trade relationship with China. "It's not just about trade. Rather, it is about strategic cooperation. “We were already considering relocating to India even before the US-China trade war started. India's economy is so large that it presents an opportunity for Taiwan to change its power relationship with China and reduce its dependence on China. “Because it is possible,” he said.

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Tsun Tzu Su said the Taiwanese government is trying to negotiate a trade deal with India to expand its trade basket. Taiwan-based Foxconn, Apple's largest supplier, has an iPhone manufacturing facility in Tamil Nadu.

The company is currently building another iPhone manufacturing facility in Karnataka, which is expected to begin production in April next year. New Delhi and Taipei signed a landmark bilateral investment treaty about five years ago, aimed at protecting Taiwanese investments in India.

Bilateral trade between India and Taiwan is booming. Trading volume increased from US$2 billion (approximately Rs 16.361 billion) in 2006 to US$ 8.9 billion (approximately Rs.72.86 billion) in 2021. “Recently, we have seen renewed momentum for Taiwanese companies to enter and expand their operations in India. Foxconn's expansion is one example,” said Tsun-tzu Hsu. Deputy Minister Shien-quey said there is a lot of room for cooperation between India and Taiwan in semiconductor manufacturing.

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“India is strong in software skills, while Taiwan is strong in manufacturing in the hardware and ICT sectors. There is a lot of room for complementary cooperation here.” Second, India has a very large domestic market. So it's also an incentive to invest," she said.

He said Foxconn's activity in India is expected to encourage more technology companies to invest in India. "Foxconn is already present in India (India) and some of the suppliers in the lower part of Foxconn's supply chain are also in India, so this will attract more companies to invest upstream in the value chain. I'm sure," she said.

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She argues that China should see Taiwan as an independent province and, if necessary, use force to reunite it with the mainland. But Taiwan sees itself very differently than China. Although India does not have formal diplomatic ties with Taiwan, the two sides have trade and people-to-people ties. Following the dispute with China on the eastern Ladakh border, some Indian experts are calling for better relations between New Delhi and Taipei, especially in the areas of trade and investment. 

To move away from China many top Taiwanese Tech Companies are shifting to India. They are looking towards India as their strength for the Global Markets in the future so are expanding themselves here.