Taiwan IT companies to invest in India

Taiwan now looks forward to Indian shores as a market with huge potential for the ICT sector.

Thomas Chang, Director, Taipei World Trade Center announced the growing presence of Taiwan’s top 5 ICT brands in India - Acer, Asustek, BenQ, D-Link and Gigabyte. With the Indian economy surging ahead Taiwanese companies now see India as a market with a huge potential for ICT products. Acer, Asustek, BenQ, D-Link and Gigabyte are some of the top ICT companies that have presence in India. These companies have significantly increased the value of their brands from last year, with Asustek and Acer remaining at the top for the third consecutive year.

“India is a big market for Taiwan after China and Japan. Its enormous potential is evident from the fact that 100 plus Taiwanese companies are already operating in India"

He further added, “Foxconn International Holdings Ltd have started on a plan to build an industrial park in Chennai to produce electronic connectors and components. Foxconn has invested $120 million. This is the largest hi-tech investment so far by a Taiwanese company in India and this is bound to attract some more Taiwan companies to follow in this Indian market”.

As an early participant in the technology revolution, Taiwan has become the world's largest maker of notebook computers, LCD monitors and motherboards. Taiwan also has maintained its domination in the global production share of Wireless LAN, Optical storage devices, Game Consoles, ADSL modems, Network products and Servers. Taiwanese companies are all set to explore the Indian frontiers with an all new mantra ‘Go South - to India’.

According to W.S. Mukund, Managing Director, Acer India, “Taiwan over the years has become a recognised leader in the global IT hardware industry. Acer India has its roots in Taiwan, being global has helped us bring the latest tested technology to the Indian market and establish ourselves quickly as one of the leading IT vendors in India.”

Ma Ying-Jeou Visit to India [22-06-2007]

Taiwanese opposition leader and presidential candidate Ma Ying-jeou, whose party enjoys good relations with Beijing, Tuesday called for enhancing trade and investment between India and Taiwan and underlined the need for Taipei to seek permanent peace with Beijing.
“We are here to rediscover India and let India rediscover Taiwan,” said Ma here in the first visit by a leader of Kuomintang (KMT) or Nationalist Party to India in the last 60 years. “I come here to seek a new beginning with an old friend. We could prepare for even closer ties between India and Taiwan,” said Ma, the presidential candidate of his party for the 2008 presidential polls. He spoke in glowing terms about the transformation of India into a new age economy. “There is enough room for India and Taiwan to develop trade and investment between them,” said Ma while alluding to the steadily increasing business ties between India and Taiwan.
Bilateral trade between India and Taiwan, the hub of computer manufacturing and LCD units, is estimated to be around $3 billion. Ma also took positive view of growing economic and strategic relations between India and China and said Taiwan, with its vibrant economy and a healthy appetite for foreign trade, can play a “not so significant role in this process.”

Radio Taiwan International to meet its listeners in India in Feb

Radio Taiwan International will hold Listeners’ Club Meetings in India

Schedule*

February 23, 2008 (Saturday) –limited to 35 listeners

Time: 11:00 AM-14:30, Chennai (Madras)

February 24, 2008 (Sunday)-limited to 70 listeners

Time: 11:00AM-14:30, Kolkata (Calcutta)

March 1, 2008 (Saturday)-limited to 35 listeners

Time: 11:00 AM-14:30, New Delhi

Qualifications:

1. Please write an email and state which meeting you would like to attend by writing “Chennai”, “Kolkata” or “New Delhi” in the email “subject”.

2. In the email, please state your name, address, telephone number, your ID number and how many years you have listened to RTI.

3. Only listeners with passes will be allowed entry.

4. Attire: casual, but proper as requested by the management of the venue.

5. Please send your email to rti@rti.org.tw  by January 25, 2008

P.S.

1. Priority will be given to listeners with RTI ID since we have received a number of letters stating their interest in attending the meeting(s).

2.  RTI will not be responsible for any transportation/lodging and other expenses

*Venues will be announced later

A New Perspective on Taiwan-India Exchanges

         There is huge room for cooperation between India and Taiwan. Strategically speaking, the geographic position and the military force of India play an important role in ensuring Taiwan's security and in balancing the power distribution in Asia. In terms of economy, ever since the 1991 economic reform, India has become one of the major economic entities in the world. The middle-class population of more than 2 million could thus be seen as a market worthy of long-term exploration. Lastly, from the perspective of politics, India is the most populated democratic country that shares a common value with Taiwan. It would be appropriate for the two countries to share their experiences in democratic governance as well.

The Establishment of the Taiwan-India Cooperation Council (TICC)

         In 2005,Taiwan Thinktank held the "India-Japan-Taiwan Trialogue: Prospects for Democratic Cooperation" conference for the cause of reflecting on the integral development in the Asia-Pacific region and calling for India to play a more active participation in East-Asian affairs. The then Minster Yu, Shyi-Kun of the Executive Yuan granted Taiwan Thinktank to establish the Taiwan-India Cooperation Council as a medium for information exchanges between the two countries. After Mr. Yu made such statement, people in India have been anticipating its establishment, while Taiwan Thinktank undertook several meetings on pertinent details. Meanwhile, the Executive Yuan urged to accelerate the foundation of a preparatory committee, and suggested that trade and economic cooperation between India and Taiwan must be put on top of the agenda. Following the Trialogue from last year, representatives from Taiwan Thinktank visited South India in mid-May to further the establishment of the TICC. The experience gained from the trip and its report would be an important reference for establishing the Council.

Rising Stars in South India: Bangalore and Chennai

         The economic growth in India has increased swiftly in recent years. Last year, the industrial growth rate in India was 7.4%, while the economic growth rate reached 8%. In India, the human resource in the field of technology is surplus, yet exceeds the demand. Indian engineers get 12% less paid every month than China's engineers, which equals to three days' wages paid to those in developed European countries and the US. It is also noteworthy that China has become India's second biggest business partner. In 2004, the trade value between India and Taiwan was less than 10% of that between India and China, which reached 136 million $USD. Yet China is not the only one; South Korea and Singapore have also become significant trading partners of India.

         It is the right moment for Taiwan to invest in the Indian market. With the grand landscape and a variety of cultures in India, it is a must for Taiwan to start the investment in the places where have fully-equipped facility. The most significant growth lies in the information technology industry, which bases in South India, instead of the political center in the North. Taiwan Thinktank therefore chose to visit the two major cities in South India: Bangalore, the capital of Karnataka, and Chennai, the capital of Tamil Nadu.

         Bangalore, the Silicon Valley of India, is the fifth largest city in the nation where two famous software companies, Infosys and Wipro, were both established. Due to the development of IT industry, India has experienced a rapid urbanization, which results in the lack of power supply and the need to improve infrastructure in Bangalore. However, foreign investment continues to flood into the city, which shows the local IT industry still poses a fatal attraction for investors.

         Chennai, originally named Madras, is the capital of Tamil Nadu in the region of southeast India and a newly-risen market as well. Being the fourth largest city in India, Chennai is developing its industry in a steady pace. The first science-based industrial park was set up in 1991 in Chennai; moreover, Chennai has transformed into a BPO center in recent years. Nevertheless, compared with Bangalore, the software export market for Chennai could still be improved. Additionally, Chennai is also nicknamed "the Detroit of India," exhibiting its prosperous automobile industry with Ford, Hyundai and Mitsubishi Motors factories. With the promise of local officials assuring that the infrastructure and power supply would gradually improve, Chennai would eventually become as competitive as Bangalore.

The Road toward Bilateral Collaboration

         Due to the differences in language and culture as well as the stereotypes of Indian culture, the exchange between India and Taiwan is far less frequent than that of India between other countries. Encouraging the mutual understanding and seeking for the common interests, consequently, should be the first priority.

1) Economic and Trade Exchange

         Economy and international trade compose the foundation for Taiwan, while diplomatic clout and rich human resource as that of India. Under current condition there is a great need for the two countries to eliminate barriers in trades and to hold conferences on investment aids.

2) Exchange of Information Technology

         Taiwan excels in hardware manufacturing and marketing, while India outstands in software programming and design. India has been expecting the establishment of a research center based on reciprocal principles as a product for bilateral collaboration. Yet when Chinese Premier Wen Jiabao visited India days ago, he mentioned the complementary role China and India play in IT industry, without acknowledging the fact that the hardware manufacturing ability China has now should give credits to the experiences from Taiwan. In view of this, Taiwan should be more alarmed, so as to prevent the marginalization of the coming Taiwan-India cooperation.

3) Exchange of Technology Professionals

         Both Hsin-Chu Science Park and Chung-Shan Institute of Science and Technology have recruited several technology professionals from India, who have been gradually forming an Indian community in Taiwan. The exchange of technology specialists should thus be thoroughly planned as a major base for collaboration.

4) Academia Exchange

         Both Taiwan and India put much emphasis on higher education. Granted that the exchange in academic and educational fields is enhanced, both parties could have a better mutual understanding, which would set the cornerstone for other forms of exchanges.

5) Exchange of Cultural Industries and NGOs

         Introducing the rich Indian culture to Taiwan would certainly raise awareness and interests of India among Taiwanese societies. In addition, NGOs in Taiwan could also be actively involved in issues concerning Indian peasants, women, poverty and its social welfare.

Looking Ahead

         Following the visit to South India in May, 2005. Taiwan Thinktank is planning to attend a bilateral conference this fall, aiming to consolidate the foundation for the Taiwan-India Cooperation Council. As an NGO, the TICC is expected to act as a medium connecting human resource, information, know-how and market research. It would further find out both individual and common leverage between governments and private sectors, so as to encourage bilateral exchanges in various fields. This way, the Council would contribute greatly to the strategic union between both parties and to guiding the path toward collaboration. 

04/11/2006

Author Soong Yun-wen

Source Taiwan Thinktank Communicator No.17

 

Taiwan cos looking to invest in Chennai

         Two of Taiwan's largest companies - ASUSTeK Computer Inc, a computer hardware manufacturer, and Formosa Plastics Group, with diversified interests including petrochemicals and energy, are committed to investing in Tamil Nadu, according to Mr Chuang Suo-Hang, Legislator from Taiwan.

         Mr Chuang, who is leading an industry delegation to India, told reporters here that ASUSTeK Computer is one of the largest players with a more than 50 per cent market share globally. They are looking at setting up a manufacturing facility in India. A presence here would help them more easily access the markets in Europe, West Asia and Africa.

         Similarly, Formosa Plastics Group, the largest private sector player in Taiwan, is looking at setting up a power plant in Chennai and examining the options. These companies are part of a 61-member delegation that is in Tamil Nadu to examine opportunities for investments here.

`Taiwan Desk' requested

         He said that Taiwan has represented to the Tamil Nadu Government that they would need a `Taiwan Desk,' single window clearance facility for the paper work and an exclusive SEZ region for the small and medium enterprises from Taiwan investing here.

         Earlier, addressing the Indo-Taiwan Bi-lateral Trade Relationship meeting organised by the Southern India Chamber of Commerce and Industry and the Taiwan External Trade Development Council, the Tamil Nadu Industries Secretary, Mr Sakthikanta Das, said the State Government would consider the request to ensure `concrete progress.' Mr Berton B.C. Chiu, Director General, Department of Investment Services, Ministry of Economic Affairs, Taiwan, said that Taiwan had identified seven industries that would look at investing in India.

 

TN plans Taiwan Eco Zone near Chennai

         The Tamil Nadu government is looking at creating a separate Taiwan Economic Zone near Chennai.  The zone, spread over 500 acres, is planned to attract investments from Taiwanese small and medium enterprises, according to Tamil Nadu industries secretary Shaktikanta Das. Das said the state government was exploring possibilities of earmarking 500 acres for the proposed zone out of two locations in Tamil Nadu — Tidco’s SEZ in Ennore and SIPCOT’s industrial complex in Cheyyar.

         According to a Business Standard report, the decision to carve out a separate Taiwanese zone comes on the heels of increased interest among Taiwanese companies to invest in India, particularly Tamil Nadu. Taiwanese entrepreneurs recognise India as a powerful economic opportunity and are keen to explore investment opportunities here.

TN may be Taiwan's biz destination choice

Taiwan investors and manufacturers would look at Tamil Nadu as a business destination in the near future as a way to de-risk the country's external trade and investment, according to Dr Chi Su, leader of a Legislator delegation from Taiwan and member of the KMT political party, Taiwan.

         Speaking at a meeting held by the South Indian Chamber of Commerce and Industry, he said that with the political climate between Taiwan and China being uncertain, it was important for Taiwan to look at other options without `looking over the shoulder to see if the big man is watching'.

         Dr Steve Hsieh, Director, Department of Technology and Economy, National Policy Foundation, Taiwan, corroborated saying that 80 per cent of Taiwan's investment in foreign countries was in China. He said that from India's point of view, the best option would be to adopt the `cluster' method - attract the flagship brands in manufacturing and the ancillary supply chain would come automatically. Mr Shaktikanta Das, Tamil Nadu Industries Secretary, said stable political climate in India made it a favourable destination for investors and industries.

         The quality of manpower in Tamil Nadu, with 250 engineering colleges producing 80,000 engineering graduates every year, as well as the quality of physical infrastructure made the State an even more favourable destination, he said.

Taiwan identifies India for trade promotion

Taiwan has identified India as this year's target country for trade promotion and investment, Yuen-Chuan Chao, president and Chief Executive Officer of the Taiwan External Trade Development Council (TAITRA), has said. Addressing presspersons after signing a memorandum of understanding with the Southern India Chamber of Commerce and Industry (SICCI) here on Saturday, Mr. Chao said Taiwan had short-listed information and communication technology, autoparts, textiles, food processing and pharmaceutical and biotechnology to be promoted in India.

         The total Taiwanese investment in India now stood at around $110 million as against billions of investment in relatively smaller economies such as Vietnam, Thailand and Malaysia. The volume in India was all set to grow manifold soon, he said A delegation, comprising exporters, purchasers and investors representing 70 Taiwan companies, would visit Chennai on May 15, Mr. Chao said. Chennai would also have an exclusive Taiwan machinery centre soon.

         He said the MoU, Taiwan's fourth with an Indian business chamber, would help in exchange of trade information and product promotion between the two regions. SICCI president S. Ramanathan said the MoU was a good beginning of a successful partnership and offered the SICCI premises for being used as a provisional base for the TAITRA, which was setting up its own office in Chennai.

"Taiwanese investment in India will grow manifold"

Tamil Nadu plans Nanotech park on Taiwan model

The Tamil Nadu government is proposing a nanotechnology park, similar to the highly successful Hsinchu Science Park in Taiwan. The park, likely to come up near Chennai, will focus on hi-tech manufacturing in semiconductor foundries, chip assembly and testing, optoelectronics, solar cell technologies and nanotechnology.   

         The nanotechnology park will require co-operation between governments, industry associations, companies, and research institutes and universities. It is a part of the state’s efforts to achieve ICT Vision 2011, which will see Tamil Nadu’s information and communication technology (ICT) industry growing to $30-33 billion from the current $6 billion. 

         Recently, a Taiwanese team led by a top official of Hsinchu Science Park visited Chennai as part of the Indo-Taiwan bilateral cooperation efforts. The team, which met with business community and top officials of the state government, had proposed the “science park” concept. A detailed project report in consultation with the authorities of Hsinchu Science Park will be prepared for the proposed Nanotech park, according to a top government official. 

         While an investment-friendly environment will be created to attract investments into the park, the state government will also explore the public-private partnership option for developing it. SIPCOT, the state nodal agency for land development, has been asked to identify land for the park within a radius of 70-80 km from Chennai, as access to the major city airport is seen as a critical factor for the project. The government is proposing to set up the park over 2,000 acres. 

         To foster co-operation programmes between research and development (R&D) institutes and companies, two or three engineering and management universities would be co-located within the nanotechnology park, which would be equipped with a social infrastructure. A meeting with Anna University and IIT-Madras has already been held for co-operation in creating an ecosystem in the park. 

         Complete product cycle companies such as R&D, design, marketing, and sales and service will also be encouraged to set up operations in the park. A separate location for companies in venture funding, component manufacturing, component distribution and office services like HR, legal, and finance and banking has been suggested. A delegation of power to the nanotech park administration committee for “one-stop operations” has also been proposed. 

         The 1,430-acre Hsinchu Science Park, which is known as Taiwan’s Silicon Valley, has been rated as one of the highly successful models to emulate hi-tech product development and manufacturing when compared with other models such as Eureka in Europe and Silicon Valley in the US, said the government official. 

         The Hsinchu Science Park has close co-operation between the government and other stakeholders like industry bodies, companies and academic and research institutions. It was established by the Taiwanese government in 1980 to create a Silicon Valley-like environment, lure back the expatriate talent pool, facilitate investment environment and build a strong ecosystem between universities, development institutes and companies in the park. 

         The Hsinchu Science Park currently has about 400 high-tech companies, including some of the big names, engaged in semiconductor, computer, telecommunciation and optoelectronic industries, aiding in transforming Taiwan into a high technology powerhouse. The park employs over 115,000 people and the turnover was about $30 billion in 2005. Companies in the park have to invest at least 4 per cent of their annual revenues towards R&D and product development