India has big ambitions in the semiconductor manufacturing sector with its planned chip city of Dholera in Gujarat. However, establishing a vibrant chip ecosystem from scratch is challenging. The small Taiwanese city of Hsinchu provides a proven blueprint for India's aspirations.
Hsinchu transformed from an agricultural town four decades ago to now being a global leader in microchip manufacturing. It is home to Taiwan Semiconductor Manufacturing Company (TSMC), the world's most valuable chipmaker which accounts for a major share of global semiconductor production. Other big names like MediaTek and former Apple manufacturer Wistron also call Hsinchu home.
Companies in Hsinchu's Science Park contribute significantly to Taiwan's GDP and exports. Over 150,000 high-skilled jobs have been created, with many young talent attracted by the opportunities. This economic success story was no accident but due to strategic planning and policy support from the government.
In the 1980s, Taiwan aimed to diversify away from agriculture and tapped into its engineering skills abroad. The government incentivized global tech experts to return and set up shop in Hsinchu's special economic zone. This attracted talent like Morris Chang who went on to found TSMC, pioneering the “fabless” manufacturing model that transformed the industry.
Hsinchu today remains a thriving hub driving Taiwan's ‘silicon shield' strategy for economic security. With over six advanced foundries and a dedicated research center, TSMC exemplifies the city's concentration of chip expertise. Nearby universities ensure a steady stream of homegrown talent.
For Dholera to replicate Hsinchu's success, focused development is key. While infrastructure is being laid, more is needed to attract residents and build a self-sustaining ecosystem like Hsinchu's schools, living amenities and nightlife. If nurtured properly, Dholera could position India on the global chipmaking map, learning from Taiwan's vision and experience along the Silicon Coast.
