electronics manufacturing

India's electronics manufacturing sector is set for rapid growth with the launch of the Electronics Component Manufacturing Scheme (ECMS). Union Minister Ashwini Vaishnaw unveiled the scheme's portal and guidelines, emphasizing its role in fostering a robust ecosystem. The initiative aims to attract significant investments, integrate Indian companies into global value chains, and establish India as a global electronics hub.

The government has launched the Electronics Components Manufacturing Scheme (ECMS) with a budget of Rs 23,000 crore to enhance domestic electronics production. The scheme prioritizes firms with strong local design capabilities and quality standards. It aims to increase India's global electronics manufacturing share to 8 per cent and attract significant investments, creating numerous jobs and boosting production value.

India's electronics manufacturing has surged, increasing fivefold in the last decade to over Rs 11 lakh crore, according to Union Minister Ashwini Vaishnaw. Exports have also seen remarkable growth, multiplying six times to exceed Rs 3.3 lakh crore, creating 25 lakh jobs. Indian products are now globally recognized for their reliability and respect for intellectual property rights.

Apple is significantly increasing iPhone production in India, aiming for 70-80 million units by late 2026, potentially making India the primary supplier to the US. This shift, driven by diversification and geopolitical factors, could see India manufacturing nearly 40% of global iPhones.

The U.S. reciprocal tariffs on China are set to cause major disruptions to global supply chains, forcing American companies to explore alternative suppliers. Electronics is one of the key sectors for India to gain with India's exports valued at nearly USD 14 Bn.

Foxconn, Apple's major supplier, is considering establishing its first North Indian plant on 300 acres along the Yamuna Expressway in Uttar Pradesh. Potentially larger than its Bengaluru facility, the plant's output remains undecided as discussions with the government continue. This move aligns with Foxconn and Apple's strategy to diversify supply chains and mitigate tariffs on Chinese imports.

India is considering capping Chinese companies' equity stakes in electronics joint ventures at 10%, contingent on technology transfer, due to limited local expertise. This move comes amid growing willingness from Chinese firms to meet India's terms for market expansion, influenced by U.S. tariff pressures.

Apple plans to shift iPhone assembly for the U.S. market to India by next year, driven by tariff threats and geopolitical risks. This move aims to produce over 60 million iPhones annually in India by 2026, doubling current output. The shift reflects a broader strategy to diversify away from China, with India's government providing incentives to boost electronics manufacturing.

Tesla is in discussions with Micron and CG Semi to diversify its semiconductor supply chain, reducing reliance on China amidst geopolitical tensions and rising costs. These partnerships align with Tesla's broader strategy of engaging with Indian manufacturers.

While India benefits from iPhone manufacturing due to US-China trade tensions, Apple currently has no plans to move MacBook and iPad production to India. The decision is influenced by limited domestic sales and the complexities of establishing a robust supply chain. However, Apple is exploring expanding its manufacturing base in India signaling a potential shift in strategy.

LG Electronics is contemplating price increases on certain products and considering shifting home appliance production to the U.S. in response to potential tariffs. The company is evaluating relocating manufacturing of key appliances to its Tennessee facility to reduce reliance on imports. LG is also navigating challenges in other markets, taking a cautious approach to its Indian unit's delayed IPO.

Following the US removal of tariffs, Indian electronics exports, including smartphones and laptops, are poised to become 20% cheaper than those from China. This move provides a significant boost to India's electronics manufacturing sector, offering a competitive edge over China and Vietnam. Experts believe this strengthens India's position in the global electronics supply chain, presenting a vital opportunity for growth.

Indian Institute of Science aims to develop angstrom-scale chips. This project seeks to position India as a leader in semiconductor technology. A team of scientists has proposed this to the ministry. The chips will be smaller than current ones. It could revolutionize industries like AI and quantum computing. The project requests Rs 500 crore funding.

Google revealed in court that OpenAI, Microsoft, and Meta are vying to integrate their AI chatbots into Samsung phones. This revelation emerged amidst the Justice Department's antitrust case against Google, with Motorola also collaborating with multiple AI companies. Google is paying Samsung a fixed monthly payment for pre-installing the Gemini app on its phones.

Apple is accelerating its iPhone production shift to India, aiming to manufacture all US-bound iPhones there by 2026 due to US tariffs on Chinese imports. This ambitious plan requires doubling India's current iPhone output.

Reliance Industries, led by Mukesh Ambani, has emerged as a strong contender to acquire a significant stake in Haier's Indian operations, intensifying competition with a consortium led by Sunil Mittal. Haier aims to reduce its equity, seeking a valuation of $2-2.3 billion, as Chinese firms are more open to partnerships with Indian entities.

Google's parent company, Alphabet, is reportedly making substantial monthly payments to Samsung Electronics for pre-installing its Gemini AI app on Samsung devices. This detail emerged during the ongoing antitrust case against Google in Washington. The agreement, spanning at least two years, involves fixed monthly payments and a share of Gemini's ad revenue for Samsung.

Ukraine and the United States have reached an initial understanding on a minerals deal, paving the way for an economic partnership agreement and an investment fund for Ukraine's reconstruction. Ukraine holds significant reserves of critical minerals like graphite, titanium, and uranium, essential for various industries including renewable energy, aerospace, and defence.

Indian Institute of Science (IISc) proposes developing 'angstrom-scale' chips using 2D materials like graphene, potentially surpassing current 3-nanometer silicon chips. Submitted to the government, the Rs 500 crore project aims to establish India as a semiconductor leader.

Samsung Electronics will invest Rs 1,000 crore in its Tamil Nadu facility, following recent labor unrest and worker protests over suspensions and demands for better wages. This investment, expected to create 100 new jobs, signals confidence in the state's workforce.

The government's increasing role as a major buyer of gold and debt, coupled with its investments in capital goods and support for healthcare and software, has proven highly profitable for investors tracking its activities over the past five years