Taiwan Cites Tariffs, Skill Gap, Red Tape As Barriers To Indian Chip Investments

ENA Sectors 2024-04-24 16:54:19 New Delhi, Apr 24 (KNN) In a candid statement, Joseph Wu, Taiwan's Minister of Foreign Affairs, outlined key obstacles India must surmount to attract major semiconductor investments from the island territory's chip giants. Chief among the challenges, Wu cited an acute shortage of experienced engineers, prohibitive tariffs hampering imports of vital electronics components, and inadequate infrastructure ill-equipped to support the demands of a cutting-edge chip manufacturing ecosystem, reported IE. India is known for its cumbersome administrative structure, Wu stated bluntly. The government must streamline laws and regulations to facilitate semiconductor investors, he added. He urged New Delhi to prioritise finalising a long-awaited free trade agreement (FTA) with Taiwan, a move that would ease the import of components, equipment, and raw materials critical to the semiconductor supply chain. While acknowledging India's promise as an investment destination, particularly in electronics, Wu said reservations persist among Taiwanese businesses weighing entry into the market. Taiwan's vaunted Hsinchu Science Park, home to behemoths like TSMC and UMC, has thrived on a robust support infrastructure encompassing supplier facilities, educational institutions, residential areas, and amenities to attract top global talent. Basic enablers like consistent electricity, water supply, and efficient transportation remain concerns for the semiconductor industry in India, the minister cautioned. He pointed to Taiwan's high-speed rail system, inaugurated in 2007, which allowed TSMC's engineers to move seamlessly between facilities, ensuring vital cross-site coordination. If the Indian government gets serious about putting the full support ecosystem together, it will certainly become an attractive investment destination for our semiconductor industry, Wu said. (KNN Bureau) 37538 https://knnindia.co.in/news/newsdetails/sectors/taiwan-cites-tariffs-skill-gap-red-tape-as-barriers-to-indian-chip-investments 2024-04-24 16:54:19 knnindia.co.in Taiwan Cites Tariffs, Skill Gap, Red Tape As Barriers To Indian Chip Investments