CHENNAI: Taiwanese investors are looking beyond the established industrial belt of Chennai and Sriperumbudur, with southern Tamil Nadu emerging as a potential destination for the state’s next phase of manufacturing expansion.
An eight-member Taiwanese delegation that toured SIPCOT in Tirunelveli and VOC Port in Thoothukudi in June found the region well-positioned to host the next wave of manufacturing clusters, particularly in green energy, electronics and electric vehicles, according to Stephen S C Hsu, Director General of the Taipei Economic and Cultural Center (TECC) in Chennai.
Speaking to TNIE, Hsu, who recently completed a year in Chennai, described the visit as primarily “a fact-finding trip” to assess the region’s industrial and logistics potential.
The visit reflects a broader shift in the way Taiwanese firms view Tamil Nadu - from being merely a manufacturing destination to a strategic partner for high-technology investments. While footwear, textiles, machinery and electronics assembly continue to anchor investments in northern Tamil Nadu, companies are increasingly exploring opportunities in advanced manufacturing, semiconductor supply-chain components, electric vehicles and green-energy infrastructure, Hsu said.
The growing interest comes amid expanding trade between India and Taiwan. Bilateral trade rose from USD 10.6 billion in 2024 to a record USD 12.5 billion in 2025. Trade has grown by 30% year-on-year so far in 2026, Hsu said, adding that TECC expects fresh investments over the next three to five years as mid-sized technology suppliers diversify their manufacturing base, creating more high-skilled jobs for engineering graduates in the state.
Hsu said Tamil Nadu’s attractiveness rests on what he called a “holy trinity” of ports, industrial parks and a skilled workforce. Direct maritime connectivity through Chennai Port and VOC Port reduces logistics costs and transit time, while SIPCOT’s industrial infrastructure, an experienced talent pool, a mature manufacturing ecosystem and investor-friendly policies give the state an edge over competing destinations.
Summing up his vision for the partnership, Hsu said, “Design from Taiwan, Make in Tamil Nadu.”
The TECC is also looking to deepen engagement with the state government. Hsu said he hopes to meet Chief Minister C Joseph Vijay soon along with members of the Taiwan Chamber of Commerce to discuss future investments.
