Leading Taiwanese firms are looking to relocate their manufacturing bases to India in a bid to curb their exposure to the Chinese market, as per leading policymakers in the Taiwan government. The latest development comes amid the island’s heightening tensions with Beijing.

Kao Shien-Quey, Deputy Minister for Taiwan’s National Development, stated there is a huge scope of collaboration between New Delhi and Taipei in areas of emerging and critical technologies, including manufacturing of semiconductors and electronics equipment.

Shien-Quey further noted, in an interaction with a group of international journalists in Taipei on July 2, that leading Taiwanese tech giants are looking at India as a key destination to boost their global supply chains.

Kristy Tsun-tzu Hsu, the director at premier policy think-tank Taiwan ASEAN Studies Center at Chung-Hua Institution of Economic Research, described India as an important country for Taiwan and said Taiwanese companies operating in China are looking at “decoupling” the global supply chain from the country while maintaining it for domestic consumers.

Leading Taiwanese companies are increasingly looking at relocating their production bases from China to countries in Europe, North America, the US and India in view of the heightened Sino-US trade tensions and the Chinese military’s increasing muscle-flexing around Taiwan.