The signing of a free trade agreement with India is a preferable alternative for Taiwan's semiconductor industry.

India and Taiwan are planning to safeguard this ecosystem by signing an FTA . The FTA will ensure some degree of liberalization of commerce and manufacturing operations .

New Delhi (India), May 14: With a huge demand for a steady chip supply, Taiwan's labor shortage and search for a manufacturing partner for offshoring China-based Taiwanese businesses appears to be the perfect partner for each other, and hence, the inking of an FTA (free trade agreement) is expected to be a positive step to remove all unnecessary trade and investment barriers and result in a paradigm shift in the tariff system.India is recruiting more Taiwanese semiconductor manufacturers India's innovative inbound-investment program has paid a lot of attention to Taiwan.India promises to establish a manufacturing hub by attracting more investment from overseas.The Production Linked Incentive Program (PLI) is a popular way to make this idea a reality.The Indian government offers incentives based on product quality through this scheme.

In 2021, two Taiwanese firms, Foxconn and Wistron, have been selected, and it is predicted that many more Taiwanese companies will be able to participate in the PLI program.India and Taiwan are planning to safeguard this ecosystem by signing an FTA as the number of such investments and trading partnerships rises.For a reason, the FTA will ensure some degree of liberalization of commerce and manufacturing operations by eliminating the highest possible tariffs, trade barriers, quotas, and subsidies for both nations.The main aim of the FTA is to develop more value-added platforms for long-term investment opportunities by ensuring international regulations, and therefore, the countries must bear in mind the fact that IP acts as a shield for a corporation during technology transfer and regional marketing, but that IP could be problematic for both countries due to India and Taiwans national inequalities.

As the FTA is being drawn up, companies may want both governments' intelligence.To ensure the most desirable outcome, companies should have a comprehensive discussion with company General Counsels and legal and IP attorneys from both countries before beginning the process.