“Outsourced semiconductor assembly and testing, and fab exercise is a giant alternative for India as soon as it begins,” Analog Units’ India MD, Gross sales, Vivek Tyagi, informed ET. “iPhone exports is the largest instance of India being part of the provision chain for the US. Many US multinational firms are sourcing provides from India like Boeing, Lockheed Martin and plenty of others.”
Analog Units is an American semiconductor firm specialising in information conversion, sign processing, and energy administration expertise, primarily based in Massachusetts.
The Semiconductor Trade Affiliation (SIA), and different US chip firms count on India would play an growing world position in areas reminiscent of meeting, testing, and packaging (ATMP/OSATs), printed circuit boards (PCBs), and significant minerals processing.
“We are going to emerge stronger as a rustic in digital system design and manufacturing other than semiconductor design,” mentioned Rajeev Khushu, board member, India Electronics and Semiconductor Affiliation (IESA).
Equally, Ashok Chandak, president, IESA, mentioned that the US exemption on electronics gives a big—albeit probably quick time period—reprieve for world expertise producers and US customers.
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The US imports greater than $250 billion price of smartphones and pc items. About 30% of that at present comes from China. India, with exports at present at $12 billion, nonetheless has important headroom, mentioned Chandak.For Indian companies, this can be a very important window to scale up operations, reorient methods, and strengthen their place in world electronics worth chains, Chandak defined.
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He added that continued underlying tensions and uncertainties might immediate world gamers to diversify their manufacturing base—making a well timed alternative for India to emerge as a most well-liked different.
Analysts informed ET that the chance for India on this house was huge and one which was India’s to lose. These like Prabhu Ram, vice chairman – business analysis group at CyberMedia Analysis, believed that Trump’s tariffs have been a disruptive coverage manoeuvre aimed toward recalibrating commerce dynamics in favour of U.S. pursuits.
“World electronics manufacturing stays closely dominated by China — pushed by deep experience, scale, and value efficiencies,” he defined. “India’s promise lies not simply in its scale as a shopper market, however in its potential to change into a dependable accomplice in important areas like meeting, testing, and packaging (ATMP), printed circuit boards (PCBs), and significant minerals processing — all important to world semiconductor resilience.”
He mentioned that the US chip business’s rising curiosity in India alerts a strategic pivot to diversify provide chains amid rising geopolitical tensions and commerce uncertainties.
“India may emerge as a important cog within the world semiconductor worth chain by additional ramping-up its competencies, capabilities and infrastructure,” Ram added.
Parv Sharma, who’s a senior analyst with Counterpoint Analysis too believed that India gives a pretty avenue for diversification.
“India’s massive person base, deal with semiconductor manufacturing, and secure relationships with key nations, makes it a pretty marketplace for semiconductor manufacturing,” he mentioned. “India is specializing in ATMP/OSATs, mature fabs, and significant supplies below its semiconductor mission. Thus, it’s seen as a strategic accomplice by key semiconductor firms.”
That is more and more being mirrored in what commerce associations and lobbying teams like Washington DC-based SIA should say. SIA, as an illustration, represents 99 p.c of the US semiconductor business by income and practically two-thirds of non-US chip corporations.
In a latest interview, John Neuffer, president of the SIA, addressed the business’s response to potential tariffs and the evolving panorama of semiconductor manufacturing, notably in India.
Whereas acknowledging the challenges posed by potential tariffs, Neuffer emphasised the business’s dedication to diversifying provide chains and the numerous alternative India presents.
“I do suppose India has an actual alternative right here to hoover up extra of our provide chains going ahead because the business continues to diversify out of different components of Asia,” Neuffer mentioned whereas highlighting the significance of meeting, testing, and packaging (ATMP), printed circuit boards (PCBs), and significant minerals processing as key areas the place India can play a big position.
Nonetheless, some like Gaurav Gupta, VP analyst – rising applied sciences and developments at Gartner flagged that India remains to be no the place within the ecosystem so far as any a part of the chip manufacturing provide chain is anxious.
“India has introduced a number of tasks, nevertheless it takes years if not many years to develop that worth chain and make a world affect. For that India wants constant insurance policies, authorities assist, and investments. So, it received’t be simple,” he mentioned.
Gupta defined that whereas India is doing the fitting issues, as of now these are nonetheless child steps.
“That is very completely different from software program,” he mentioned. “The semiconductor business is capital and useful resource intensive, the place ROI takes time. I count on at the least 3-5 years earlier than we are able to see any alerts of affect or success of all these packaging/meeting tasks which were introduced in India. Even at that time it will likely be the start of a journey for India.”
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