Key Points
- Taiwan aims to double its chip and electronics exports to India within the next 5-7 years.
- The growth is driven by India’s booming smartphone manufacturing sector, particularly for the U.S. market.
- Major Taiwanese firms, such as Foxconn and Powerchip, are already investing billions in India.
- Trade between Taiwan and India has already surged from $4 billion to over $10 billion in the last five years.
Taiwan aims to double its chip and electronics exports to India over the next five to seven years, betting on the South Asian nation’s rapid growth as a smartphone manufacturing hub. The head of Taiwan’s main trade body said the move is driven by surging demand from the U.S. for phones made in India, especially Apple’s iPhones.
India’s smartphone exports to the U.S. have jumped nearly 40% in the last year, a trend that Taiwanese companies are eager to capitalize on by supplying the essential components. “Electronic industries are driving the growth of trade between our two countries,” said James C. F. Huang, chairman of the Taiwan External Trade Development Council.
This isn’t just a future plan; the investment is already happening. Major Taiwanese firms have invested approximately $5 billion in Indian manufacturing. Apple supplier Foxconn has recently unveiled a new $1.5 billion investment aimed at shifting more production out of China. In a significant move, Powerchip Semiconductor is partnering with India’s Tata Electronics on a $11 billion venture to build India’s first AI-driven chip plant.
When asked about the risk of potential U.S. tariffs on Indian goods, Huang downplayed the concern. He pointed to India’s massive domestic market and the growing local supply chain as reasons why the trade relationship will continue to thrive.
The numbers back up this optimism. Taiwan’s exports to India have already grown from about $4 billion to over $10 billion in just the last five years, led by chips and electronic components.
