Taiwan Tati Cultural and Educational Foundation

Taiwan clinched another victory in deepening trade ties with India through its semiconductor diplomacy. Last week, the Indian government started the construction of three new chip manufacturing facilities in Gujarat and Assam, including a fab to be built with the assistance of Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC).

The strategic use of semiconductor technology, production and supply chain diplomacy might be a convenient approach for a diplomatic breakthrough, since many governments are keen to build local chip supply and boost supply chain resilience to help them weather geopolitical tensions and prepare for contingencies such as a global pandemic. However, Taiwanese companies should be cautious in making inroads into India’s chip market, as there are multiple factors behind successfully building a chip industry.

Exactly a decade ago today, university students and civic groups from throughout Taiwan congregated in the Legislative Yuan in a demonstration against the then-ruling Chinese Nationalist Party’s (KMT) hasty attempt to pass a proposed Cross-Strait Service Trade Agreement.

Apprehensive that the agreement might allow Beijing to put Taiwan’s autonomy in severe jeopardy via economic means, protesters occupied the legislature and chanted slogans to voice their outrage.

Initially, the government stood firm on its intent to implement the agreement, with demonstrators dispersed by police force and water cannons as they endeavored to expand their activities to the Executive Yuan. However, after generating widespread support among the public, the protesters eventually succeeded in compelling the government to revoke it.