Taiwan’s role in the global tech world
is a leader in taiwan semiconductor production and is home to Taiwan Semiconductor Manufacturing Company (TSMC) — the world’s largest contract chip manufacturer and a major supplier to various US companies including Apple, Taiwan worries that Chinese companies are trying to gain chip talent and chip manufacturing technical know-how. In addition, China’s military exercises near the island in an effort to force Beijing to acknowledge its sovereignty have made it a global issue. The island nation has found the US to be an important international supporter.
What is the Foreign Direct Product Rule, or FDPR
More recently, the US used a provision called the Foreign Direct Products Rule, or FDPR, which allows the US to control the trade in US technologies. According to the provision, the US can bar any product from being sold if it is made using American technology.
This means the US could stop selling any semiconductor manufacturing company that uses US equipment (which most do) to China, essentially developing technologies in supercomputing and military applications. cripples its ability.
India Well Situated Geography
As US-China tensions escalate, tech giants including Apple and Google are looking at India as an alternative destination for assembling their phones. India is also ready to manufacture semiconductors to meet the global shortage in view of the increasing demands.
The recent willingness of Taipei’s de facto ambassador Baoshuan Geer to share the country’s expertise with India in critical areas such as semiconductors, 5G, information security and artificial intelligence could help India become a new manufacturing hub in Southeast Asia.
“The signing of the FTA will remove all trade and investment barriers and boost bilateral trade and investment. In addition, it will attract Taiwanese companies to invest in India to set up production bases, sell India-made products, etc. world, and help transform India into a global manufacturing hub,” Gere told PTI.