According to industry reports, India and Taiwan are in talks on an agreement that could bring chip manufacturing to South Asia along with tariff reductions on components for producing semiconductors by the end of 2021.
Officials representing the two countries have reportedly met in recent weeks to discuss a deal that would establish a chip manufacturing plant worth an estimated $7.5 billion to India to supply everything ranging from 5G devices to electric cars.
India is currently studying possible locations with adequate land, water and manpower, and has reportedly agreed to provide financial support equivalent to 50 per cent of capital expenditure from 2023 as well as tax breaks and other incentives.