Taiwan plans to double its exports of chips and electronics to India over the next five to seven years as India’s smartphone shipments rise, driven by strong demand from the United States, according to the head of Taiwan’s main trade body.
India’s smartphone exports to the U.S., currently exempt from higher tariffs, increased nearly 40 percent from a year earlier to 8.43 billion dollars in the first five months of the fiscal year that began in April. This growth is largely attributed to demand for Apple’s iPhones.
“Electronic industries are driving the growth of trade between our two countries,” said James C. F. Huang, chairman of the Taiwan External Trade Development Council, during an interview at the Taiwan Expo trade fair. “I believe in the next five to seven years, the trade and investment which we have in India can double.”
Taiwanese firms have so far invested about 5 billion dollars in Indian manufacturing. Last year, Powerchip Semiconductor partnered with Tata Electronics in an 11 billion dollar venture to build India’s first artificial intelligence-driven chip plant in Gujarat, as part of a 10 billion dollar government incentive scheme. Earlier this year, Apple supplier Foxconn announced a 1.5 billion dollar investment in its India operations, moving more production from China.
Huang downplayed concerns that higher U.S. tariffs on Indian goods could affect Taiwanese businesses. “I do not think it is going to affect Taiwan-India trade relations or investment relations,” he said, noting India’s large domestic market and expanding opportunities in petrochemicals, textiles, and electronics.
Several Taiwanese companies are investing in India, bringing components from Taiwan and developing a local supply chain to support operations. Taiwan’s exports to India reached over 10 billion dollars in 2024, led by chips, electronic components, and machinery, up from about 4 billion dollars five years earlier, according to Indian government data.
Despite the absence of formal diplomatic ties, India and Taiwan have built a strong commercial relationship. Officials in New Delhi have expressed interest in attracting more investment from the island, a key global chip producer.
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