India and Taiwan have begun free trade arrangements. Efforts are also being made in partnership with Taiwan to establish a semiconductor centre in the nation. Because the c hip demand is expanding across the board, from mobile phones to automobiles, the plan this time is to construct a semiconductor plant. The two parties have already created four groups dedicated to the development of semiconductor hubs. The parties involved will also work together to develop human resources for the sector. Bilateral investment and free trade agreements are also under consideration.
Meanwhile, discussions between the two parties made significant progress in August and September. They also held an in-depth conversation about the planned trade pact. Efforts are also being made to attract Taiwan Semiconductor Manufacturing Company (TSM) and United Micro Electronics Corporation (UMEC) to India. India has already undergone a plethora of industrial development locations. However, no final decision on the location has been obtained by the two parties yet.
Interestingly, a Taiwanese corporation will develop its production unit abroad for the second time if the request is approved. The strain on Taiwan, on the other hand, is mounting in a variety of ways. In such an event, Taiwan will be able to exert pressure on China by investing in India.
Subsequently, on Wednesday, the Union Cabinet, led by Prime Minister Modi, authorised a budget of Rs 76,000 crore for semiconductor chip design and manufacture in India. The cabinet approved Rs76,000 crore for the ambitious initiative, named Programme for Development of Semiconductors and Display Manufacturing Ecosystem, to be funded over a six-year period, according to Union Information and Broadcasting Minister Anurag Thakur. In the matter Union minister Piyush Goyal added that under the Aatmanirbhar Bharat Abhiyan, semiconductors are one of priorities.