Taiwan offers semiconductor investments and looks for India’s rare earths to power EVs and defense technology. In 2026, PSMC and Tata will begin producing chips together.
Taiwan made a strong statement at the Taiwan Expo 2025 in New Delhi: let us create together; you have the minerals, we have the technology.
Taiwan is keen to import rare earth minerals from India to support its high-tech sectors, such as electric cars, renewable energy, and defense manufacturing, Keven Cheng, Deputy Director of TAITRA (Taiwan External Trade Development Council), told ANI.
As Cheng put it, “We have the technology to create items, but we need the materials in India so that we can work together.” This highlighted the potential benefits of the partnership for both nations.
Rare earth reserves are India’s secret gem
India has the third-largest rare earth reserves in the world, with an estimated 6.9 million metric tons. According to the India Brand Equity Foundation, the countries with the largest reserve bases are China, Brazil, and India, followed by Australia, Russia, Vietnam, the United States, and Greenland.
The resource is nevertheless incredibly underutilized in spite of this. If completely utilized, India has the potential to become a long-term source of vital minerals that support anything from sophisticated defense systems to electric vehicle batteries.
For these vital minerals, the Ministry of Mines has been attempting to ensure supply chain resilience. In order to create global value chains, it is collaborating with organizations such as the Initiative on Critical and Emerging Technologies (iCET), the Indo-Pacific Economic Framework (IPEF), with the Minerals Security Partnership (MSP).
The link between semiconductors
Cheng also affirmed that Taiwanese semiconductor companies are getting ready to make significant investments in India. He mentioned the significant foundry Powerchip Semiconductor Manufacturing Corporation (PSMC), which would work with the Tata Group to begin chip mass manufacturing in India the next year.
Like Applied Materials, micro-semiconductor simply makes investments in India. In order to establish a semiconductor cluster, Cheng predicted that an increasing number of semiconductor supply chains will soon move to the Indian market.
Taiwan now manufactures almost 60% of the world’s semiconductors, but due to supply chain realignments and tariff issues, India has emerged as a desirable new center due to its large domestic market, wealth of talent, and advantageous location.
Why Taiwan and India are complementary
Taiwan contributes advanced manufacturing technology, including advanced knowledge in electronics, semiconductors, and intelligent equipment.
India has resources and scale, including a trained labor force, rare earths, and a developing consumer market. “You have a talent pool, and we have a method for producing technologies.
Taiwan Expo: Since 2018, constructing bridges
Since 2018, India has hosted the Taiwan Expo, which is on its eighth year in a row this year. It has developed into a venue for Taiwanese businesses to expand their market reach and strengthen their relationships with Indian businesses.
In the fields of semiconductors, electronics manufacturing, ICT, and smart machinery, cooperation has already established itself. According to Cheng, the exhibition also assists businesses in overcoming tariff obstacles by arranging additional events, building alliances, and obtaining Taipei subsidies.
Overall: Tech for minerals, minerals for technology
With regard to India’s renewable energy transition and defense self-reliance, the rare earth drive is a component of a larger critical minerals strategy. Diversifying supply chains outside of the US and China is growing crucial for Taiwan.
Taiwan as a source of semiconductors and sophisticated manufacturing skills, and India as a supply of rare earths, might form a complementing alliance.