Taiwan: Taiwan’s India moment could lead to deeper manufacturing links. | So Good News
It comes as tensions rise with China over setting up factories for products from smartphones to airplanes.
A Taiwanese delegation led by its Deputy Economic Affairs Minister Chern-Chyi Chen arrived in Delhi on Wednesday. They are expected to visit important cities, including Chennai, said a ministry official privy to the delegation’s itinerary.
The delegation also included members of Taiwan’s trade body China National Federation of Industries.
At a meeting of Indian and Taiwanese industrialists in Delhi on Thursday, Chen said that Taiwan is seeking to work with India.
“Our companies are small and medium enterprises. 97% of our economy is supported by these small and medium enterprises. Secondly, Our companies are very fast in technology and work in OEM business model. The business model of Taiwanese companies requires the most trust from customers,” Chen said.
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Taiwan’s focus on cooperation with India comes at a time when tensions between the two countries are at an all-time high. China’s People’s Liberation Army (PLA) has been at loggerheads since US House Speaker Nancy Pelosi’s recent visit to Taiwan, which it considers a breakaway state, for military exercises.
The Taiwanese industry delegation includes representatives from major manufacturers Foxconn and Pegatron and other industry associations, sources said.
“For industry; Interest comes mainly from two sources: Taiwanese economic interests are dependent on China and want to change that; “Secondly, the position of the United States is at odds with that of China,” an official said.
Taiwan-India relations have grown over the years since the establishment of business and cultural centers in New Delhi and Taipei nearly three decades ago.
Bilateral trade is expected to reach $5.7 billion by the end of 2020, according to government investment promotion agency Invest India.
Industry experts believe that Taiwan’s strong focus on bilateral relations is a very positive development for India.
“Taiwan is actively strengthening relations in many fields with electronics. So far, Taiwanese companies have not focused on engaging with India’s product development and R&D capabilities. I believe they will soon move forward in that direction,” Ajai Chowdhry, co-founder of HCL, an electronics manufacturing industry veteran, told ET.
ET reported that Foxconn Chairman Young Liu will visit India for the second time to meet Prime Minister Narendra Modi, amid an aggressive push this year to manufacture semiconductor chips in Gujarat.
Tamil Nadu has so far bagged two of the three Taiwanese companies that manufacture iPhones in India – Foxconn and Pegatron.
Tamil Nadu is in talks with Foxconn for several projects, including electric cars, a senior government official told ET, adding, “Tamil Nadu has shown that it is a leading country.”