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India Accelerates Talks With Taiwan on Chip Plant, Trade Deal

  • New Delhi is wooing Taiwanese chip makers to build locally
  • The move is expected to create fresh tensions with China
Electronica China 2021

Photographer: Gao Yuwen/VCG/Getty Images

India and Taiwan are in talks on an agreement that could bring chip manufacturing to South Asia along with tariff reductions on components for producing semiconductors by the end of the year, people familiar with the matter said, a move that may spark fresh tensions with China

Officials in New Delhi and Taipei have met in recent weeks to discuss a deal that would bring a chip plant worth an estimated $7.5 billion to India to supply everything from 5G devices to electric cars, the people said. India is currently studying possible locations with adequate land, water and manpower, while saying it would provide financial support of 50% of capital expenditure from 2023 as well as tax breaks and other incentives, the people said.