Interview/ Mumin Chen, representative of Taipei Economic and Cultural Centre in India
As India looks to build a globally competitive semiconductor ecosystem, the real starting point lies in talent. In an exclusive interview, Mumin Chen of the Taipei Economic and Cultural Centre underlines the need for India to reverse its brain drain, encourage students and engineers to train in Taiwan’s advanced semiconductor ecosystem and return to work in India. Excerpts:
Q/ Taiwan transitioned from an agriculture-based economy to a global semiconductor leader. What were the key phases and turning points in that journey?
The key change happened in the 1970s, when a new thing called the integrated circuit (IC) emerged. Americans invented it, but the countries that performed best were in Asia—first Japan, and then Korea, Taiwan, Hong Kong and Singapore. These countries started manufacturing electronic products using ICs.
Taiwan entered this market in the 1970s. We had sufficient labour force and strong market access, as major markets were the US and western countries. Taiwan was an export-oriented economy. So in the 1970s, the society gradually focused on manufacturing ICs and IT-related products.
In the 1980s, computers emerged—first personal computers. In the 1990s, mobile phones came in. And in the 2000s, smartphones. Because Taiwan already had experience in manufacturing electronic products, it became easier to upgrade IC technology. Eventually, Taiwan became a key manufacturer of semiconductor products.
Q/ Given this experience, how do you see India’s potential—can it follow a similar path or does it need a different strategy?
Of course, every country has its own advantages. India has many. It is a mature economy, has an industrial base and is still very diversified. India also has experience in manufacturing IT products. What India needs is the right strategy and direction.
The semiconductor industry is not just one industry—it is an entire ecosystem. Taiwan took about 40 years to build this ecosystem. India now wants to start, but it must decide where to begin—design, manufacturing or other areas.
Q/ If you had to identify one critical factor behind Taiwan’s success in semiconductors, what would it be?
I keep thinking about this question. It may not be the only reason, but one very important reason is talent cultivation. To develop an IT industry, you need enough engineers. In the 1980s and 1990s, many Taiwanese students went abroad, mainly to the US, including myself. At that time, most of them stayed in the US after completing their studies. But in the 1990s, many came back.
The Taiwanese government managed to convince them to return and serve the country, for several reasons—income, environment, opportunities. This return of talent played a key role in Taiwan’s success.
Q/ In that context, what are the key challenges India faces in building its own talent pipeline?
If India wants to develop its semiconductor industry, it needs engineers. It cannot rely on Taiwanese or American engineers. Right now, many Indian students from IITs go to the US. The question is how to bring them back to serve the country.
Q/ How can India and Taiwan work together, particularly in the area of talent development and knowledge exchange?
Indian students can come to Taiwan, gain experience and return to serve India. This is a model that can be developed.
Right now, instead of focusing on getting Taiwanese companies to invest in India, emphasis should be placed on sending Indian students and young professionals to Taiwan to study semiconductor design, manufacturing, packaging, testing and AI-related chip technologies and gain hands-on industry experience. After that they should be encouraged to come back and serve the country. If India is able to create this cycle of education, training and return, it would help build a domestic talent pool that meets global standards. Once that happens, Taiwanese companies will be more willing to come to India, because they will already know that India has trained manpower and a capable workforce.
Q/ What are the key risks India should be careful to avoid as it builds this sector?
Taiwan’s semiconductor industry now contributes about 20 per cent of its GDP. This means Taiwan is highly dependent on this single industry. This creates risks. Other sectors, like biotechnology, struggle to attract talent because people prefer to work in semiconductors. No industry can dominate forever. Technology changes. While semiconductors are important now, future technologies may shift priorities. India should avoid over-dependence on one sector.
Q/ How do current geopolitical tensions impact Taiwan’s semiconductor industry?
Taiwan produces around 60 per cent of the world’s chips. I have to admit the fact that since it faces military threats from China, some people suggest diversifying manufacturing to other countries. Companies like TSMC are expanding to the US, Japan, Europe and Singapore. However, a successful model in one country may not work the same way elsewhere due to cultural differences. The best solution is to ensure a stable and secure environment in the region. All countries should commit to the security of the Taiwan Strait, making it clear that no country can act unilaterally.
Q/ How do you assess the US’s role and commitment to Taiwan’s security at this point?
For now, the US commitment remains unchanged. The regional security order was created decades ago, and the US still plays a dominant role. But Taiwan is also becoming more realistic and is preparing to address its own security challenges.