New Delhi: Taiwan has extended a proposal to India in a sector that could reshape global supply chains. Locked in hostility with Beijing, the island nation has signalled its willingness to take rare earth minerals from India and, in return, provide semiconductor technology and investment.
The offer carries weight, as China has long dominated this strategic field.
Taiwan’s Message To India
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The proposal came during the Taiwan Expo 2025 in New Delhi. A senior Taiwanese official made the pitch. Keven Cheng, deputy director of the Taiwan External Trade Development Council (TAITRA), told news agency ANI that Taiwan was eager to source rare earth minerals from India for its high-tech industries.
“We have the technology to make the products, but we need the minerals from India so that we can work together,” he said.
Why Rare Earth Matters
Rare earth elements form the backbone of permanent magnets, which are vital for advanced electronics.
China triggered global alarm earlier this year by disrupting the supply chain of rare earth magnets. Beijing controls most of the world’s reserves and has built its dominance on refining and production technology.
India holds an estimated 6.9 million metric tonnes of rare earth reserves. This is the world’s third-largest stockpile, behind only China and Brazil. Other countries with significant reserves include Australia, Russia, Vietnam, the United States and Greenland.
Despite this resource, India has not so far developed large-scale technology to process minerals into magnets, leaving the supply chain vulnerable.
India’s Growing Push On Critical Minerals
New Delhi is now taking steps to fix that gap. Through the Ministry of Mines, it is working to build a secure supply chain for critical minerals.
India has aligned itself with international frameworks such as the Minerals Security Partnership, the Indo-Pacific Economic Framework and the Initiative on Critical and Emerging Technologies.
Domestic companies are also being encouraged with incentives to expand permanent magnet production within India.
Semiconductor Investment On The Table
Taiwan’s offer goes beyond minerals. Leading Taiwanese semiconductor companies are preparing to invest directly in India. One major name, Powerchip Semiconductor Manufacturing Corporation, has already tied up with the Tata Group to start large-scale chip production in India from next year.
At present, Taiwan accounts for 60 percent of global semiconductor output. But trade tensions with the United States and security risks at home have pushed Taiwanese firms to look for stable partners abroad. India is seen as a strong option, offering both high demand and a large pool of skilled talent.
Strategic And Geopolitical Edge
The partnership carries a clear geopolitical undertone. Closer cooperation between India and Taiwan has the potential to alter the balance of power in South Asia and beyond.
For India, progress in this area supports its goals of clean energy transition and defence self-reliance. For Taiwan, the deal opens access to a secure long-term market and a hedge against Chinese pressure.
A Win For Both Sides
Analysts say the arrangement has the makings of a long-term strategic win. India can leverage its mineral wealth to rise in the global semiconductor race. Taiwan gains stability for its supply chain and finds a trusted partner in South Asia. The result could mark a turning point for both nations in technology, trade and security.
