Taiwan aims to increase its chip and electronics exports to India by twofold within the next five to seven years, as the country's smartphone shipments grow due to rising demand from the US, according to the leader of Taiwan's primary trade organization.
Smartphone exports from India to the US, which currently avoid higher tariffs, rose almost 40 percent year-over-year to $8.43 billion during the initial five months of the fiscal year beginning in April, based on industry data, primarily fueled by Apple iPhone demand.
Leading Taiwanese companies have invested approximately $5 billion in Indian manufacturing operations to date, according to Taiwanese government officials.
Also Read: Adaptability Lessons: Why Southeast Asia's Heat Can't Beat Mars Wrigley
In the previous year, Powerchip Semiconductor partnered with Tata Electronics in an $11 billion project to construct India's inaugural AI-powered chip manufacturing facility. Located in Gujarat state, this facility was included in a $10 billion government incentive program.
Additionally, this year Apple supplier Foxconn announced a $1.5 billion investment in its Indian operations as it continues relocating production away from China, which faces tariff challenges.
Also Read: Lessons from the Rewarding Investment Journey of Warren Buffett
Huang dismissed worries that increased US tariffs on Indian products might negatively impact Taiwanese companies.
The electronic sector is fueling trade growth between our nations," stated James C. F. Huang, head of the Taiwan External Trade Development Council.
"I don't think it's going to affect Taiwan-India trade relations or investment relations," he said, pointing to India's large domestic market and growing opportunities in petrochemicals, textiles and electronics.
Also Read: Asia's 50 Best Restaurants 2024: Chefs Revisit Nostalgic Flavours
According to Huang, multiple Taiwanese firms are making investments in India, importing additional components from Taiwan and establishing domestic supply chains to support their Indian operations.
In 2024, Taiwan's exports to India exceeded $10 billion, primarily driven by semiconductors, electronic parts, and machinery. This represents significant growth from approximately $4 billion just five years prior, based on Indian government statistics.
While India maintains no official diplomatic relations with Taiwan like most nations, the two have developed strong trade connections. Government representatives have indicated that New Delhi is keen to attract increased investment from the island nation, which is a significant semiconductor manufacturer.