India and Taiwan in talks for $7.5 bn chip plant deal

India and Taiwan are in talks on a deal that could bring chip manufacturing to South Asia along with tariff cuts on components for manufacturing semiconductors by the end of the year. Officials in New Delhi and Taipei have met in recent weeks to talk about an agreement that will bring a chip plant worth an estimated $7.5 bn to India to provide everything from 5G devices to electric cars. India is presently considering possible locations with sufficient land, water and manpower while saying it would render financial support of 50 per cent of capital expenditure from 2023 and tax breaks and other incentives.