At the Taiwan Expo 2025 in New Delhi, Taiwan made a distinct proposal: it wants access to India’s rare earth minerals while offering its semiconductor technology in exchange. Keven Cheng, Deputy Director of the Taiwan External Trade Development Council (TAITRA), remarked that Taiwan requires materials from India to bolster its high-tech industries, which encompass electric vehicles, defence, and renewable energy sectors.

India’s Rare Earths: An Underused Asset

India possesses nearly 6.9 million metric tonnes of rare earth reserves, making it the third highest in the world for such deposits. Despite this, these resources have been largely underexploited. If fully utilised, they could make India a key long-term supplier of crucial materials used in EV batteries, defence systems, and other advanced technologies.

To bolster supply chain resilience for critical minerals, India’s Ministry of Mines is engaging with global initiatives like the Minerals Security Partnership (MSP), the Indo-Pacific Economic Framework (IPEF), and the Initiative on Critical and Emerging Technologies (iCET).

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Taiwan’s Semiconductor Push into India

Taiwan, which currently produces about 60 percent of the world’s semiconductors, is seeking to strengthen its global supply chain by investing heavily in India. Cheng announced that Powerchip Semiconductor Manufacturing Corporation (PSMC) will collaborate with the Tata Group to begin mass production of chips in India as early as next year.

Taiwanese companies plan to expand semiconductor supply chains into India, attracted by its large market, abundant talent, and strategic geographic position. Cheng emphasised that Taiwan has the technology and India has both resources and skilled human capital — making cooperation mutually beneficial.

Complementary Strengths Yielding Mutual Benefit

Taiwan brings advanced manufacturing technologies, including electronics, smart machinery, and semiconductor expertise. India contributes scale: its rare earth resources, growing consumer market, and workforce strength. Cheng sees a potential future where both countries address industry challenges together by leveraging these complementary strengths.

Taiwan Expo as a Platform for Collaboration

Held every year since 2018, the Taiwan Expo in India has evolved into more than just a trade show. It has become a forum where Taiwanese enterprises diversify their markets and deepen collaborations with Indian firms. Industries such as ICT, smart manufacturing, electronics, and semiconductors have already started forming partnerships, aided also by efforts to overcome tariff barriers and obtain governmental support.

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Big Picture: Minerals for Tech, Tech for Minerals

For India, tapping into rare earths is central to its strategy for clean energy transition and defence self-reliance. For Taiwan, diversifying supply chains beyond traditional hubs like China and the U.S. has grown more urgent. The proposed partnership could thus stitch together a supply chain where India supplies raw materials and Taiwan provides technology and manufacturing know-how.