As India progresses in its Make-in-India initiative, particularly regarding semiconductor manufacturing, experts believe it will enter a period when investment begins to pick up.
As India embarks on semiconductor ecosystem building by approving chipmaking proposals in late February, analysts expressed their concerns over the infrastructure challenges, particularly in electricity.
With the global supply chain going regional, emerging countries in Southeast Asia and South Asia are rising to the fore. In a keynote speech at the Indo-Pacific Industry Strategy Forum hosted by Mt. Dadu Industrial Innovation Foundation, MIH Consortium CEO Jack Cheng told the audience that Taiwanese companies need to unite efforts from fellow Taiwanese partners and local partners in Southeast Asia and South Asia to compete with China.
In the wake of the unveiling of India's US$1.25 billion AI mission, Nvidia has partnered up with Indian telecoms and enterprises for the installments and production of GPU-based servers.
Despite initial challenges, industry leaders and experts are optimistic that India is on a trajectory that aligns with developing a robust indigenous semiconductor industry.
As India is emerging as an electronics manufacturing hub to challenge other manufacturing powerhouses like China and Vietnam, local EMS provider Dixon Technologies is optimistic about India's production share in global electronics manufacturing to reach nearly 20% in the coming two decades.
China-based tech giants are intensifying their efforts to enhance and utilize their Large Language Models (LLMs) as services and algorithm filings in China surged over the past year. China's dependence on the United States for chips and AI models threatens its aspirations of developing widespread AI services.
Amid global production relocation, India remains disadvantageous due to a lack of stable power. To attract global manufacturers, India lowered import duties on EVs.Stable power supply is a key issue for manufacturing relocation to India
India saw a sharp decline in PC and tablet shipments in 2023, with iPad shipments plummeting. The Indian market is expected to recover to double-digit growth in 2024, and locally-produced PCs and tablets are likely to increase.
Although India approved three chip projects under its flagship incentive policy, the Indian government reportedly has some reservations about the packaging and testing facility project proposed by HCL and Foxconn.
Geopolitical tensions have led to the rise of Vietnam as a manufacturing hub, yet production there has often been hampered by power grid instabilities and labor shortages.
