Taiwan Eyes India’s Rare Earth Minerals for Tech Collaboration
Taiwan has the tech smarts to build cutting-edge products, but it needs India’s rich rare earth minerals to make things happen on a bigger scale. That’s the key message from Keven Cheng, Deputy Director of TAITRA (Taiwan External Trade Development Council), who spoke to at the Taiwan Expo 2025 in New Delhi.
Rare earth elements are game-changers for industries like electric vehicles, renewable energy, and defense. "We have the technology to make some products, but we need the materials from India so we can team up," Cheng said on the sidelines of the expo. Taiwan is eager to source these vital minerals from India to boost joint efforts.
India sits on a massive treasure trove of about 6.9 million metric tons of rare earth reserves, ranking it as the world’s third-largest holder. If India taps into this fully, it could become a major global supplier of rare earth minerals, powering everything from EVs to high-tech defense gear.
Cheng highlighted how Taiwan and India make a perfect pair. Taiwan brings world-class manufacturing expertise, while India offers a huge talent pool and natural resources. On the semiconductor front, Taiwan dominates as the top producer, churning out around 60% of the world’s chips. Now, Indian companies are jumping in too.
"PSMC will team up with Tata for mass production next year," Cheng revealed. PSMC, or Powerchip Semiconductor Manufacturing Corporation, is a big-name Taiwanese firm founded in 1994 and based in Hsinchu. It specializes in memory and logic chips, and this partnership could supercharge India’s semiconductor industry.
India’s Ministry of Mines is on the move to secure supplies of critical minerals like rare earth elements. These are essential for building resilient supply chains in electric vehicles, renewable energy, and defense sectors. The ministry is teaming up on global platforms such as the Minerals Security Partnership (MSP), Indo-Pacific Economic Framework (IPEF), and the Critical and Emerging Technologies initiative (iCET) to strengthen the entire value chain.
Looking ahead, Cheng sees more Taiwanese semiconductor giants heading to India. "Companies like Applied Materials are already investing here. Soon, we’ll see a full semiconductor cluster emerge, with Taiwanese firms joining the party," he added. India’s massive domestic market, skilled workforce, and prime location make it a hot spot for manufacturing amid global shifts and tariff hurdles.
On trade challenges, especially tariffs hitting exports to the US, Cheng noted that Taiwan’s government is stepping in with solutions and subsidies. TAITRA plans to host more events worldwide to support affected companies. "Our industries complement each other—Taiwan has the manufacturing tech, and India has the talent. Together, we can tackle industry challenges," he said.
The Taiwan Expo, now in its eighth year in India since 2018, is a big win for this partnership. It helps Taiwanese businesses diversify markets and build stronger ties with Indian firms in semiconductors, electronics, ICT, and smart machinery. As Cheng put it, it’s all about facing global issues like tariffs head-on through collaboration.
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