By Vasudevan Sridharan | 2026-06-22

A coming industrial park in India signals the extent of technological cooperation between it and Taiwan.

The Indo-Taiwan Industrial Park in the Sanand-Dholera corridor of Gujarat state, India, marks a new step in India's efforts to attract high-technology manufacturing and forge more economic ties with East Asia.

The project documents, signed in April, reflect broader changes in India-Taiwan relations and the growing role of Indian states in attracting foreign investment and developing manufacturing ecosystems.

Developed in partnership with Taiwan-based Allegiance Group, the project is expected to attract more than 10 billion INR ($117 million) in Taiwanese investment and create approximately 12,000 direct jobs over the next five years, Gujarat Chief Minister Bhupendra Patel said in April.

The industrial park will focus on semiconductors, electronics, electric vehicles, robotics and other advanced manufacturing industries, according to the official release.

The project comes at a crucial moment for India's semiconductor ambitions. Gujarat, the home state of Prime Minister Narendra Modi, has emerged as the focal point of the country's chip manufacturing strategy, with semiconductor-related investments worth more than 1.2 trillion INR ($14.5 billion) already under development.

The Sanand-Dholera corridor is emerging as a key hub for India's semiconductor industry, hosting projects that range from chip fabrication, assembly, testing and packaging to electronics manufacturing.

Indian states take lead

A long list of Indian states is cooperating with Taiwan rather than wait for New Delhi's go-ahead.

"The cooperation can happen in multiple ways, some of which will be more beneficial to one country compared to other while some will be mutually beneficial," semiconductor industry analyst Arun Mampazhy told Focus.

"Taiwan needs a workforce," Mampazhy said "India is good with software, support roles in general and has young talent in areas like robotics and AI [artificial intelligence]." Hardware-related industries are where Taiwan is strong and India can gain, he said.

For Taiwanese companies, the future Sanand-Dholera industrial park offers access to one of the world's fastest-growing manufacturing markets. Taiwan brings expertise in semiconductors, electronics, precision engineering and supply chain management, while India offers a large domestic market, a growing pool of engineering talent, improving infrastructure and policy support aimed at expanding manufacturing capabilities.

The Allegiance Group did not respond to requests from Focus.

Large-scale technology transfers are unlikely because research and development remain central to Taiwanese firms' competitiveness, Mampazhy said. However, he described the project as an encouraging step for India as it seeks to build a domestic semiconductor industry.

"It is a good beginning for India, which till the launch of its semiconductor mission in December 2021, was near zero in chip manufacturing. So, anything is a bonus," Mampazhy said.

Growing chip packaging capacity and Tata's silicon fabrication project with technology transfer from Powerchip Corporation could help localize more of the supply chain, making the parks a form of research and development for India's semiconductor industry, he said.

Besides Gujarat, the Allegiance Group is developing a similar joint venture in the southern state of Karnataka. Officials are still acquiring land for that project.

Tamil Nadu state signed an agreement last year to establish an Indo-Taiwan Industrial Park aimed at attracting 18 billion INR ($190.4 million) in investment, a Tamil Nadu official tweeted at the time.

A similar project is under way in Telangana state, where 11 Taiwanese firms operating in solar energy and electronics have already agreed to begin operations.

Andhra Pradesh state has pursued plans for an Indo-Taiwan Industrial Park in Kuppam while seeking Taiwanese investment in electronics, batteries and advanced manufacturing.

Together, these projects suggest that India-Taiwan economic cooperation is increasingly being driven by state-level industrial initiatives. Rather than relying solely on national-level engagement, individual states are developing specialized ecosystems aligned with their respective strengths.

Gujarat is focusing on semiconductor manufacturing, Karnataka on innovation and chip design, and Andhra Pradesh on export-oriented industrial production.

Beyond Taiwan

The projects offer Taiwanese companies an opportunity to diversify production bases and strengthen supply chain resilience amid shifting global manufacturing trends. India, meanwhile, stands to gain from investment inflows, job creation and a better position in global electronics and semiconductor value chains.

Taiwanese engagement with multiple Indian state governments, alongside the federal administration, reflects the burgeoning economic ties between the two sides.

Gujarat is developing chip packaging capacity and a major chip fab (fabrication plant), while Bengaluru remains a center for semiconductor design talent, Mampazhy said. More Indian states could attract Taiwanese investment later, but "the key will be willingness and offer[s] from the states as well," he said.

Despite the absence of formal diplomatic ties, economic engagement between the two sides has expanded over the past three decades, spanning trade, investment, technology, education, research and labor mobility.

The opportunities extend beyond Taiwan. As multinational companies seek to diversify supply chains and reduce concentration risks, India is attracting growing interest from Japan, South Korea, Vietnam and other East Asian economies.

The trend aligns with India's Act East Policy, which seeks more economic engagement with East and Southeast Asia.

If successful, the Sanand-Dholera project could serve as a model for future East Asian investments in India and reinforce the role of state-led industrial ecosystems in attracting advanced manufacturing supply chains.