In recent years, the economic relationship between India and Taiwan has evolved into a dynamic partnership, driven by shared interests in technology, manufacturing and innovation.

This collaboration is no longer just about trade and investment, it’s about creating a symbiotic ecosystem where Taiwan’s advanced manufacturing prowess complements India’s vast consumer market, skilled workforce and ambitious industrial goals.

A testament to this growing synergy is the deepening involvement of Taiwanese giants like Foxconn, Wistron and Pegatron in India’s electronics manufacturing landscape, alongside India’s emergence as a key player in global supply chains through initiatives like TATA Electronics’ takeover of Apple’s mobile phone assembly lines.
 

Taiwan’s role in India’s electronics manufacturing boom

Taiwanese companies have been instrumental in shaping India’s electronics manufacturing ecosystem. Foxconn, a global leader in electronics manufacturing and a key supplier to Apple, has significantly expanded its operations in India. The company has invested heavily in setting up production facilities for iPhones and other consumer electronics, leveraging India’s cost-competitive labour and the government’s Production-Linked Incentive (PLI) Scheme.

Similarly, Wistron and Pegatron—two other major suppliers to Apple—have also established a strong presence in India. However, in a landmark development, TATA Electronics acquired Wistron’s iPhone assembly operations in 2023, marking India’s first major foray into high-end electronics manufacturing. This acquisition not only underscores India’s growing capabilities but also highlights the strategic alignment between Taiwanese expertise and Indian ambition.
 

India’s focus areas: Semiconductors, PCBs and beyond

While Taiwan is a global leader in semiconductors and printed circuit boards (PCBs), India is just beginning its journey in these critical sectors. Recognising the strategic importance of semiconductors, the Indian government has launched a $10 billion incentive programme to attract global players and build a domestic semiconductor ecosystem5. Taiwanese companies—with their unparalleled expertise in chip design and manufacturing—are natural partners for India in this endeavour.

For instance, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor foundry, could play a pivotal role in helping India establish its semiconductor fabrication units. Similarly, collaboration in PCB manufacturing—a sector where Taiwan dominates globally—could help India reduce its reliance on imports and build a robust electronics supply chain.
 

Conventional sectors: Building on a strong foundation

The India-Taiwan partnership has already made significant strides in conventional sectors like electronics, footwear and automotive components. Taiwanese companies like Foxconn, Acer and Feng Tay have established manufacturing units in India, creating jobs and boosting exports.

• Electronics: Foxconn’s expansion in India is a prime example of how Taiwanese investment is helping India become a global hub for electronics manufacturing. The company’s facilities in Tamil Nadu and Andhra Pradesh produce millions of smartphones annually, catering to both domestic and international markets.
• Footwear: Companies like Feng Tay and Apache Footwear have set up large-scale manufacturing units in India, leveraging the country’s skilled workforce and cost advantages to produce footwear for global brands.
• Automotive: Taiwanese firms are also investing in India’s automotive sector, particularly in electric vehicle (EV) components and battery technology, which aligns with India’s push for EV adoption.

Emerging sectors: The next frontier of collaboration

As both nations look to the future, emerging sectors like semiconductors, AI, green energy and EVs present exciting opportunities for collaboration.

1. Semiconductors and PCBs:
   Taiwan’s dominance in semiconductor manufacturing and PCB production offers a unique opportunity for India to bridge its technological gaps. Joint ventures and technology transfers could help India build a self-reliant semiconductor ecosystem, reducing its dependence on imports and enhancing its position in the global supply chain.
2. Artificial Intelligence and 5G:
   While Taiwan excels in hardware manufacturing, India’s strengths in software development and AI create a perfect synergy. Collaborative projects in AI-driven solutions, IoT and 5G infrastructure could position both nations as leaders in the digital economy.
3. Renewable energy:
   Taiwan’s expertise in green technology, particularly in solar panels and energy storage, aligns with India’s ambitious RE targets. Joint ventures in solar, wind and hydrogen energy projects could accelerate India’s transition to a green economy.
4. EVs and battery technology:
   In parallel to the global shift towards electric mobility, Taiwan’s advancements in battery technology and EV components could complement India’s growing EV market. Partnerships in this sector could help India build a sustainable EV ecosystem while providing Taiwanese companies access to a rapidly expanding market.

A foundation built over decades

The India-Taiwan economic relationship traces its origins to 1995, when diplomatic ties were established through the India-Taipei Association (ITA) in Taipei and the Taipei Economic and Cultural Centre (TECC) in Delhi. Over the years, these institutions have facilitated trade, investment and cultural exchanges, laying the groundwork for a robust partnership.

Key milestones like the Bilateral Investment Agreement (BIA) in 2018 and the alignment of Taiwan’s New Southbound Policy with India’s Act East Policy have further strengthened bilateral ties. These initiatives have created a favourable environment for businesses to collaborate and innovate.
 

Looking ahead

“As India and Taiwan continue to deepen their economic ties, the future holds immense potential that can be leveraged by Taiwan’s manufacturing expertise and India’s market potential. Further, both nations can create a win-win partnership that drives growth, innovation and sustainability,” says Neel H. Bhatia, Senior Vice President & Chief Economic Relations Officer at Invest India.

From semiconductors and PCBs to AI and RE, the India-Taiwan partnership is poised to redefine global supply chains and set new benchmarks for economic collaboration. As TATA Electronics’ takeover of Wistron’s operations demonstrates, this partnership is not just about mutual benefit, it’s about shaping the future of technology and manufacturing on a global scale.

This blog is written by Malvika Jain