India needs to work on improving its ecosystem of land, water, and electricity supply and provide excellent rail, road and water connectivity to the cities where it wishes to develop an electronics and semiconductor manufacturing ecosystem, the Deputy Mayor of New Taipei City government of Taiwan Chu Tih Ju told ET. “The main problem (in India) is land – the availability of the land without litigations. And secondly, of course, uninterrupted supply of power and water. Basic infrastructure is actually the biggest requirement,” Ju said. He was here in India to attend the Taiwan Expo 2024.

Though several major nations across the world are looking to develop domestic semiconductor and electronic manufacturing ecosystems, these companies do not work in isolation. All countries should therefore focus on bringing allied industries that support these industries, he said.

Apart from the basic requirements of litigation-free land, power and water, countries like India which have a wide pool of highly skilled workers available should also focus on ensuring the easy reach of the export markets for their domestic companies in both the semiconductor and electronic manufacturing services companies, the deputy mayor said.

Taiwan, one of the biggest manufacturers of electronics components and the largest maker of semiconductor chips had bilateral trade worth $8.2 billion with India last year. During the first three months of 2024, the bilateral trade had already grown by 28%, the chairman of Taiwan’s largest trade body Taiwan External Trade Development Council (TAITRA) James C F Huang said, adding that all companies, irrespective of their size in the Taiwanese, Indian or the global market should adhere to local laws of the country they operate in.

( Originally published on Jul 08, 2024 )