India's Delegation to Taiwan for Semiconductor Collaboration
A high-level Indian delegation is set to visit Taiwan, comprising senior government officials, electronics-industry associations, and semiconductor company executives, to explore collaborative opportunities in the semiconductor sector.
Background Context
- Prime Minister Narendra Modi promoted India as a major destination for the semiconductor industry at Semicon India 2025.
- The visit coincides with Semicon Taiwan 2025, focusing on Taiwanese chip foundries potentially setting up units in India.
Importance of Semiconductors
- Semiconductors are crucial for electronics such as computers, smartphones, solar panels, and medical devices.
Geopolitical Relevance
- The visit gains importance amidst evolving geopolitical dynamics.
- Discussions may include companies like Advanced Semiconductor Engineering and United Microelectronics Corporation.
- Taiwan Semiconductor Manufacturing Company (TSMC) is unlikely to expand to India soon due to ongoing projects elsewhere.
Existing Collaborations
- Tata Group and Taiwan's PSMC are collaborating on India's first chip-fabrication unit in Dholera, Gujarat.
- Taiwan's Foxconn and HCL Group are establishing an OSAT unit in Jewar, Uttar Pradesh.
India Semiconductor Mission (ISM) Phase 2
- The delegation's visit aligns with the finalization of ISM Phase 2, with a projected budget exceeding ₹1 trillion ($15 billion).
- The focus will include machinery manufacturers, gas and chemical suppliers.
- Continued support for semiconductor fabrication and assessment of incentive needs for ATMP and OSAT units.
India's Semiconductor Ecosystem Development
- Initiated in December 2021 with a ₹76,000 crore ($10 billion) incentive package.
- The first scheme involved complex parameters; the revamped ISM offers a flat 50% incentive for all units.
- To date, 10 semiconductor units have been approved across various Indian cities.
