and Taiwan are in talks on an agreement that could bring chip
manufacturing to South Asia by the end of the year.
There would be tariff
reductions on components for producing semiconductors, 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,
according to sources.
in Taipei wanted quick progress on a bilateral investment agreement that would
include tariff reductions on dozens of products used to make semiconductors --
a precursor to a broader trade deal also under consideration.
discussions have accelerated in recent weeks as U.S. President Joe
Biden seeks to shore up supplies of chips, strengthen supply chains among
democracies and improve military capabilities in the region.
has taken a bolder stance against China since a protracted border standoff
following violent clashes in 2020 in which at least 20 Indian and four Chinese
soldiers were killed.
While India and Taiwan are
laying the groundwork to discuss a comprehensive trade deal covering goods,
services and investments, officials in Taipei are seeking to revise the
investment deal to show some early progress.
shortages have delayed the much-anticipated launch of a smartphone by
billionaire Mukesh Ambani’s Reliance Industries that has been co-engineered
with Google. Taiwan has
welcomed cooperation between the two sides on semiconductors although it is
still evaluating the proposal given a lack of ecosystem for setting up a chip
fabrication plant in India.