India has cumbersome administrative structure. There is lack of experienced engineers. There are high tariffs on the imports of electronic components. There is inadequate infrastructure.

India can think of signing a free trade agreement (FTA) with countries such as Taiwan. That will facilitate the imports of components, equipment and material.

It is necessary to look at the whole supply chain. There should be IC design, testing, packaging and material supply.

Taiwan is the world’s leading supplier of advanced chips — it caters to 90 percent of the market. As there is US-China tension, Taiwan would like to diversify to alternative destinations for their supply chains. India has attracted PSMC to tie up investment. However, it is a technical tie up and Taiwan PSMC has a marginal role in the financials of putting the plant together.