India is in talks with Taiwan over the possibility of setting up a domestic semiconductor manufacturing hub, a report citing sources claimed on December 16. The two sides are also reportedly discussing agreements related to free trade and investments.
Taiwan is home to two of the world's biggest semiconductor giants--Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC).
New Delhi and Taipei are exploring the possibility of bringing either of the two companies to set up a manufacturing plant in India, Hindustan Times learnt from two persons familiar to the development.
The Indian side has also proposed a number of sites where the production plant could be set up, the persons said. They, however, noted that the process is "complicated".
"It is a very complicated process because a company like TSMC uses components from hundreds of other firms. Setting up a hub in India means convincing those firms to also set up a facility in India to ensure the supply of components," the newspaper quoted one of the source as saying.