India has repeatedly invited TSMC to build a factory in India, but has never received a response. TSMC has rejected India, as well as the invitations from Singapore and Qatar to build a factory. First, TSMC is a key pillar of the semiconductor industry in Taiwan, and TSMC has always been extremely cautious about investments outside the island. Second, India has not yet established a mature semiconductor industry ecosystem, and the economic benefits of entering the Indian market are limited, with high tariffs and low investment confidence.

Third, the Taiwan authorities are very concerned about TSMC's investments, and all investment decisions must be evaluated and approved by the authorities in Taiwan. Since India does not recognize the status of Taiwan, strategic considerations cannot align. If Taiwan wants to invest in India, India must first show some indication, but India is afraid of offending China for TSMC, so the investment cannot proceed.

Foxconn is an original equipment manufacturer (OEM), and it chose to build a factory in India because of the low labor costs. Foxconn itself does not have any highly advanced technology and can build factories around the world, as it is a labor-intensive industry. It will go where labor is cheap, and there is no problem. However, TSMC is different. TSMC is real chip technology, a much more important company than Foxconn, specializing in producing high-precision and high-tech chips. TSMC is one of the top companies in the world, so TSMC has always been very cautious about foreign investments. It has even refused to build a factory in Qatar and Singapore, let alone India.

It is almost impossible for India to lure TSMC's technology over. Even the United States tried to take TSMC's technology by force and was eventually forced to build a factory in the U.S. India trying to get TSMC's technology for free is simply ridiculous. In reality, our country has already achieved mass production of chips at 28nm technology, which is fully mature. Now, we are moving towards more advanced lithography machines and chip technologies.

Currently, we are still conducting powerful research and development. Although we don't know when it will be completely successful, it should be not far away. We believe that our country has been investing heavily, and it is unlikely to have no results. TSMC not going to India is a relatively rational decision, and it indeed has its level. No matter how India tries to persuade, it doesn't fall into the trap.

Original article: https://www.toutiao.com/article/1836345408869388/

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