Taiwan’s companies shift supply chains from China to India

TAIPEI (Taiwan News) — Taiwan’s companies are shifting supply chains from China to India, the country’s key trade body chair told Reuters in an interview.

Trade tensions between Washington and Beijing have led to an increase in Taiwan’s foreign direct investment (FDI) in India to over US$665 million (NT$21.68 billion) in the five years to 2023, Taiwan External Trade Development Council Chair James Huang (黃志芳) told Reuters. That was compared to Taiwan’s FDI of US$277 million in India between 2006 and 2017, Huang said.  

“It is evident that more Taiwanese companies are moving supply chains out of China and are establishing them in India,” Huang said to Reuters on Monday (July 15). 

India is interested in having more investment from Taiwan to bolster its manufacturing sector, per Reuters. Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) partnered with India’s Tata Group to construct the first chip fab in the western Gujurat state.

“We have programs to bring in Indian students and talents to be trained in Taiwan in semiconductors and that would pave the path for our future cooperation,” Huang said. He added that Taiwan’s supply chain shift to India has centered on smartphone assembly and footwear.

Huang recently took a trip to India to discuss trade cooperation with Indian manufacturers. He also attended the Taiwan Expo in India which was held from July 8-10.

Bilateral trade between Taiwan and India was US$10.1 billion during the fiscal year that ended in March, according to Reuters.