Despite the sustained growth in handset exports, primarily fueled by Samsung Electronics and Apple suppliers, India is actively urging China-based smartphone vendors to contribute to export, a goal that has eluded success in previous years.
As Foxconn ramps up its investments and production in India, the world's largest electronics manufacturers find it difficult to replicate their Chinese experiences in the South Asian country due to challenges like language barriers, cultural differences, and labor codes not as pro-business as those in China.
Amid Foxconn's accelerating investments in India, supply chain insiders believe that as China-based and India-based contract manufacturers face respective challenges, only Foxconn can expand its production capacity in India to meet customer demands.
As part of the US$400 million investment plan in India, AMD inaugurated its largest global design center in Bengaluru, with the Indian government expecting more investment from chipmakers to come to India in the next few months.
Amid the policy initiative and an investment wave of hydrogen energy, vehicles, and applications in India, Taiwan-based Chung-Hsin Electric and Machinery Manufacturing (CHEM) is eyeing huge opportunities in the South Asian market and expecting the hydrogen business to become a new growth driver.
Although India demonstrates ambition and has pivoted to invite Taiwanese semiconductor partners to accelerate its chip dreams, analysts are taking a cautious view but said the success of Micron in India is key to the South Asian country's semiconductor future.
India's efforts to build a semiconductor manufacturing ecosystem have seen numerous companies enter the semiconductor packaging segment. One of them, Kaynes SemiCon, has revealed that they plan to roll out the first line of OSAT by the first week of April 2024. Speaking to Digitimes Asia recently, Raghu Panicker, CEO of Kaynes SemiCon, added that they have numerous announcements on the horizon.
India might consider extending invitations to additional companies to participate in the incentive scheme aimed at manufacturing telecom and networking products due to the surplus budget available from the scheme as India is looking to build itself as an export powerhouse for telecom products.
Despite witnessing substantial revenue and profit growth in India in recent years, analysts predict a downturn in sales for most Apple products in the country, except for the iPhone. This trend differs from the smartphone market, where a shift towards premiumization did not occur in the notebook, tablet, and wearable sectors.