Parv Sharma is a Senior Analyst with Counterpoint Technology based out of India. Counterpoint Technology is a global firm providing analytics, content, delivery or after-sales support to businesses in AI, Semiconductors, Automotive, loT & cloT, Consumer Electronics, eSIM, Smartphones, Manufacturing, Network and Infrastructure etc.

The Indo-Pacific Politics talked with Parv Sharma to get an industry perspective about India’s semiconductor vision and about Taiwan’s importance in helping India realize its aspirations.

India offers up to 50 percent capital expenditure as subsidy, has a growing market base and boasts over 20 percent of global semiconductor design professionals.

Parv sharma, industry analyst

Indo-Pacific Politics (IPP): What’s special about India’s Semiconductor Mission and its goals? What are its strengths and what are its challenges?

Parv Sharma: India’s Semiconductor Mission, a strategic initiative by the Government of India, aims to build a robust semiconductor and display manufacturing ecosystem. This is necessary for the nation’s digital and strategic future. Its primary objectives are to establish domestic manufacturing, reduce import dependency, and achieve strategic autonomy, thereby securing India’s place in global electronics supply chains. These are critical for defense, telecom, automotive, and AI sectors.

Several factors favor India as an alternative hub: strong policy support, offering up to 50 percent capital expenditure as subsidy; design-linked incentive schemes; a large and growing market base, with expanding smartphone, automotive, and IoT sectors; a strong engineering and IT foundation, boasting over 20 percent of global semiconductor design professionals; and geopolitical tailwinds leading to global supply chain realignment post-COVID and U.S.-China tensions.

However, challenges need addressing: a lack of fab experience, as it’s a capital and technology-intensive venture; stable supply chain ecosystems are missing; there’s a talent shortage in manufacturing-related skills; the long gestation period requires sustained policy continuity; and global competition is intense.

IPP: Can you compare India’s semi-conductor mission with Taiwan’s
semiconductor policy in its nascent years?

Parv Sharma: In its early years (1980s-1990s), Taiwan invested early in R&D and human capital, prioritizing the development of core manufacturing capabilities. Its approach was primarily state-led but technology-focused, anchored strongly by the Industrial Technology Research Institute (ITRI). Taiwan’s key strategy involved first building indigenous capability (via TSMC), then expanding to global partnerships.

India, however, is balancing between design leadership and manufacturing, relying more on attracting foreign firms and subsidies to jump start its ecosystem. India’s core strategy is to attract foreign fabs, promote local players (such as Tata) who are primarily design-led, and seek foreign technology partnerships for joint development.

Regarding talent, Taiwan created specialized semiconductor curricula, sent talent
abroad, and focused on fabrication skills for fabs. India, while strong in chip design, needs to address its weakness in fabrication skills. Ultimately, Taiwan’s focus was on manufacturing leadership, whereas India’s focus is on both design (through Design Linked Incentive – DLI schemes) and manufacturing.

“Taiwan leads across semiconductor value chain be it fabrication, packaging, and supply chain depth, making it the go-to partner for nations building their own semiconductor ecosystems.”

Parv sharma, industry analyst

IPP: Why is Taiwan important for India’s semiconductor mission? How do you see India-Taiwan technology partnership in the next five years?

Parv Sharma: Taiwan is central to India’s semiconductor ambitions for both strategic and practical reasons:

Global semiconductor leadership: Taiwan leads across semiconductor value chain be it fabrication, packaging, and supply chain depth, making it the go-to partner for nations building their own semiconductor ecosystems.

Technology Transfer and Expertise: Taiwan has decades of technical know-how in chip manufacturing—from cleanroom operations to equipment and yield management. The partnership can fill this critical gap through training, joint ventures, and consulting.

Shared geo-political interests: Both India and Taiwan seek supply chain diversification away from China and India can be a stable democratic partner in a volatile Indo-Pacific region.

Taiwan will be a critical enabler of India’s semiconductor journey-especially in the
early stages of building fabs and supply chains. In return, India offers Taiwan scale,
talent, and diversification opportunities.

Further, Taiwan can significantly help India meet the strict standards required for
semiconductor manufacturing-especially in cleanroom design, fire safety, EHS
(Environment, Health & Safety), and process control-through knowledge transfer,
technical collaboration, and consulting.

Process and Quality Control Standards: Taiwan’s adherence to Six Sigma and
process control practices for yield optimization through joint QA/QC programs, tool calibration standards, and defect density control training will benefit Indian fabs.

Standards & Policy Advisory: Taiwan can guide India’s Bureau of Industry Standards (BIS) or MeitY on fab-specific codes and international compliance.
Establish joint training centers for skill development in India, co-run by Taiwanese
and Indian partners.

Taiwan’s decades of operational excellence in fab safety, clean room management, and standards compliance can help India avoid critical early-stage missteps. By leveraging Taiwanese mentorship and partnerships, India can fast-track the development of a world-class, standards-compliant semiconductor ecosystem.

“India offers Taiwan scale,
talent, and diversification opportunities.”

Parv sharma, industry analyst

IPP: What does India-Taiwan semiconductor joint projects mean for the global supply chain?

Parv Sharma: Diversification of Supply Chains: Taiwan dominates advanced chip fabrication (especially via TSMC), but is geopolitically vulnerable due to tensions with China and India offers a stable democratic alternative to host packaging (ATMP), mature-node fabs, and chip design, reducing global single-point-of-failure risk supporting a more geographically distributed, resilient semiconductor ecosystem.

Bridging Design and Manufacturing: India’s strength in chip design and Taiwan’s world-class fabrication and packaging expertise will help create vertically integrated supply chains within the Indo-Pacific, serving global clients.

New Regional Supply Chain Hub in South Asia: Major equipment makers are having significant number of investments and work force in India and partnership with Taiwan will help strategic rebalancing of the global chip supply chain, improving resilience, regional diversity, and long-term scalability.

Access to Talent & Cost Advantages: With Taiwan’s rising manufacturing wages and operational costs India’s low-cost, skilled engineering talent, large pipeline of fab operators, process engineers and technicians offer Taiwan to outsource or co-locate back-end manufacturing (e.g. testing, packaging) in India to lower cost pressure and maintain margins.

Expansion of Manufacturing Base for Mid-Tier Chips: Not all chips need advanced nodes (e.g., 3nm); automotive, IoT, and industrial chips use mature nodes (28–65nm), India, supported by Taiwan, can become a regional manufacturing hub for these non-cutting-edge chips while allowing Taiwanese firms to focus high-end fabs at home, while scaling global production through India.

Strategic Market Access & Influence: Partnering with India gives Taiwanese firms a local manufacturing base to meet Indian market demand and qualify for “Make in India” benefits improving Taiwan’s strategic leverage in global chip diplomacy.

Strengthening Taiwan’s role in global supply chains, Taiwan can evolve from being
just a manufacturing hub to a supply chain orchestrator-overseeing fabs, design, and packaging across geographies and by integrating Indian partners, Taiwan expands its global semiconductor influence.

IPP: Is there anything else that you would like to share with our readers on this topic?

Parv Sharma: Strong IP laws and common standards are crucial to attract global players and protect innovation in the semiconductor space, the collaboration opportunities will further aid in setting up India Taiwan IP legal working groups for chip design/IP cores, harmonize with SEMI, ISO, and JEDEC standards and develop joint certification bodies to streamline fab approvals and tool procurement.