TAIWAN firms are shifting supply chains to India from China, as Taipei and New Delhi strengthen economic ties, the head of the island's key trade body told Reuters, as global trade tension rises among major economies.
Trade conflict between the US and China drove up Taiwan's foreign direct investment (FDI) in India to more than US665 million in the five years to 2023, said James Huang, chairman of the taiwan External Trade Development Council.
That compared with democratically ruled Taiwan's FDI of nearly $277 million in India during the decade from 2006 to 2017, Mr Huang said in a recent interview.
'It is evident that more Taiwanese companies are moving supply chains out of China and are establishing them in India,' he added.
Like most countries, India has no formal ties with Chinese-claimed Taiwan, but the two have established a close business relationship, with India keen on more investment from the major chip-producing nation to aid its efforts to boost manufacturing.
Taiwan's Powerchip Semiconductor Manufacturing Corp partnered this year with India's Tata Group to build the first semiconductor fabrication facility in western Gujarat state, relying on a $10-billion incentive scheme.
'We have programmes to bring in Indian students and talents to be trained in Taiwan in semiconductors and that would pave the path for our future co-operation,' Mr Huang said.
Taiwan's supply chain shift has focused on mobile telephone assembly industries and footwear, he added.
Two-way trade between India and Taiwan stood at $10.1 billion during the fiscal year ending in March 2024.
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Trade conflict between the US and China drove up Taiwan's foreign direct investment (FDI) in India to more than US665 million in the five years to 2023, said James Huang, chairman of the taiwan External Trade Development Council.
That compared with democratically ruled Taiwan's FDI of nearly $277 million in India during the decade from 2006 to 2017, Mr Huang said in a recent interview.
'It is evident that more Taiwanese companies are moving supply chains out of China and are establishing them in India,' he added.
Like most countries, India has no formal ties with Chinese-claimed Taiwan, but the two have established a close business relationship, with India keen on more investment from the major chip-producing nation to aid its efforts to boost manufacturing.
Taiwan's Powerchip Semiconductor Manufacturing Corp partnered this year with India's Tata Group to build the first semiconductor fabrication facility in western Gujarat state, relying on a $10-billion incentive scheme.
'We have programmes to bring in Indian students and talents to be trained in Taiwan in semiconductors and that would pave the path for our future co-operation,' Mr Huang said.
Taiwan's supply chain shift has focused on mobile telephone assembly industries and footwear, he added.
Two-way trade between India and Taiwan stood at $10.1 billion during the fiscal year ending in March 2024.
SeaNews Turkey
