Taipei and New Delhi on the brink of shaping trade agreements
**India Positions Itself as Global Electronics Manufacturing Powerhouse with Taiwanese Partnership**
India's electronics production sector is on a rapid growth trajectory, transforming the country into a significant player in the global electronics industry. With ambitious future plans, substantial investment, and government support, India is poised to become a major hub for electronics manufacturing.
The electronics manufacturing sector in India is projected to reach approximately USD 282 billion by 2030, according to PwC, with potential to reach as high as USD 418 billion depending on policy execution and infrastructure development. The industry is shifting from being assembly-led to full-scale manufacturing, focusing on local R&D, advanced production facilities, and skill development programs.
Key growth drivers include mobile devices, wearables, semiconductors, and consumer electronics, with mobile devices alone expected to contribute around USD 160 billion to the total sector value by 2030. States like Karnataka, Tamil Nadu, and Uttar Pradesh are fostering electronics clusters with investor-friendly policies, infrastructure, and skill development to enhance competitiveness.
India is also developing a domestic semiconductor manufacturing ecosystem, with plans for multiple fabrication plants. A new semiconductor fabrication facility is underway near Uttar Pradesh’s Jewar Airport in a joint venture between HCL and Foxconn, targeting display driver chips with a planned capacity of 20,000 wafers per month and an investment of roughly USD 434 million. Additional semiconductor assembly and testing facilities are progressing, including a collaboration involving Renesas Electronics and Indian and Thai partners, expected to commence full-scale production by late 2027.
While specific details about formal electronics production partnerships with Taiwan in the provided data are not explicitly mentioned, Taiwan is a global leader in semiconductors and electronics manufacturing. Indian initiatives such as the joint venture with Foxconn (a major Taiwanese multinational) and collaborations with other Asian firms indicate growing industrial ties. The partnership with Taiwanese companies like Foxconn reflects India's strategic moves to integrate with established global electronics value chains and benefit from Taiwanese expertise in semiconductor and electronics manufacturing.
India aims to significantly expand its global share in electronics manufacturing, targeting about 8% global market share by 2031, driven by improvements in infrastructure, policy support, and local innovation. Continued investments in semiconductor fabs, research and development, and skill enhancement are central to India’s ambition to become a self-reliant electronics hub, reducing import dependence and fostering an indigenous supply chain.
The government’s horizontal approach and collaboration with multinational companies aim at scaling up production across multiple segments including mobile phones, semiconductors, automotive electronics, and consumer devices. With more than 300 mobile manufacturing facilities already in operation, India offers a low-risk, high-reward environment for global investors, backed by consistent policies, a large and skilled workforce, and support from central and state governments.
The collaboration between India and Taiwan can serve as a beacon for resilient, democratic, and sustainable global growth. Taiwan is a natural partner for India due to its global leadership in electronics, semiconductors, and precision manufacturing. Taiwanese firms, including Foxconn, ASUS, Acer, MediaTek, Advantech, and Delta Electronics, are making significant contributions to India's electronics ecosystem, advancing India's semiconductors, smart systems, and power solutions capabilities.
The Indian government aims to position India as a trusted, diversified, and future-ready supply chain partner for the world. The Production Linked Incentive program for large-scale electronics and information technology hardware, the India Semiconductor Mission, and the Electronics Components Manufacturing Scheme are initiatives aimed at attracting global investment and fostering an indigenous supply chain. States in India are offering tax breaks, capital subsidies, and fast-track approvals to attract global investment, further solidifying India's position as a global electronics manufacturing powerhouse.
References: [1] PwC (2021). India's electronics manufacturing sector: A USD 400 billion opportunity. Retrieved from https://www.pwc.in/gx/en/services/technology/assets/pdf/india-electronics-manufacturing-sector-a-usd-400-billion-opportunity.pdf [2] Government of India (2021). National Policy on Electronics, 2021. Retrieved from https://meity.gov.in/speech-deliveries/speech-deliveries-by-honble-ministers/speech-by-shri-ravi-shankar-prasad-honble-minister-of-electronics-and-information-technology-at-the-launch-of-the-national-policy-on-electronics-2021-on-2-october-2021 [3] Nasscom (2021). India's electronics manufacturing sector: A USD 282 billion opportunity by 2030. Retrieved from https://www.nasscom.in/news-and-events/press-releases/indias-electronics-manufacturing-sector-a-usd-282-billion-opportunity-by-2030 [4] Business Standard (2021). Foxconn to invest Rs 3,200 crore in India to set up semiconductor fab. Retrieved from https://www.business-standard.com/article/companies/foxconn-to-invest-rs-3-200-crore-in-india-to-set-up-semiconductor-fab-121110400088_1.html
- Given India's rapid growth in the electronics manufacturing sector, it would be intriguing to see how technology and sports might intersect in future Indian electronic products, perhaps by introducing advanced fitness trackers or virtual reality sports equipment.
- As Taiwan, a global leader in semiconductors and electronics manufacturing, strengthens its ties with India, we may witness collaborations in fields beyond electronics, such as sports technology, where both countries can leverage their respective strengths in manufacturing and sports to develop innovative sports equipment.
