- Two of the largest Asian giants, India and China, have been at odds for the last three years, owing to Beijing’s aggressive posture on the East’s borders. The Galwan clash along the line of actual control (LAC) and the Chinese leadership’s refusal to withdraw from the illegal occupation have strained the two countries’ already precarious bilateral relationship. Several rounds of diplomatic and military meetings between the two countries have produced little to calm the frayed nerves. Of course, China not only maintains hostility towards India in general, but it also supports Pakistan while addressing our legitimate concerns about cross-border terrorism.
PC: AFP VIA GETTY IMAGES
- When the border issue continues to simmer, the Indian leadership refuses to return to business as usual. China wishes to compartmentalize the border issue to serve its interests, but India’s refusal to cooperate appears to be par for the course. Then there’s Taiwan, which is constantly under pressure from China on multiple fronts, including muscle flexing. In the coming years, India aspires to be one of the world’s three largest economies. To achieve this lofty goal, India must focus on ensuring consistent economic growth by bolstering every industry, including critical semiconductor manufacturing. Who better than Taiwan to assist India in achieving its stated goals?
- Foxconn chairman Young Liu recently reaffirmed his company’s commitment to India while also pitching Taiwan as a reliable partner at the Semicon India 2023 conference. This was a significant statement, coming just days after the Taiwanese tech behemoth withdrew from a joint venture with Vedanta to manufacture semiconductors in India. According to reports, Foxconn intends to apply separately to build semiconductor manufacturing plants in India. According to reports, Foxconn is looking to partner with Taiwanese semiconductor giant TSMC and Japan’s TMH for the India venture. Needless to say, if Foxconn’s plans come to fruition, it will be a massive boost to India’s quest to become a chip-making hub. This opportunity must not be squandered.
PC: Trends
- Taiwan, however, is a high-tech economy that punches far above its weight; Taiwan alone produces more than 60% of the world’s semiconductors. And, while bilateral trade between India and Taiwan reached a record $8.5 billion in 2022, it remains far below its potential. There is a favorable environment for India to roll out the red carpet for Taiwanese businesses looking to relocate to other markets. However, India must compete with other investment-friendly countries such as Vietnam, Thailand, and the Philippines. Furthermore, a successful Taiwan policy will only benefit Indian ambitions in the long run. To summarize, the time has come for the Indian leadership to step up and take relations with Taiwan to a new level, despite Chinese pressure.
