Indian Electronics Manufacturing Developments : News, Updates and Discussions

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Apple vendors, Samsung, others propose Rs 11 lakh crore mobile phone production under PLI scheme

The proposals submitted by the companies to the Ministry of Electronics and IT to avail benefits of the Production Link Incentives (PLI) are expected to create 12 lakh employment opportunities -- 3 lakh direct and around 9 lakh indirect jobs, a source told PTI.

PTI
August 01, 2020, 07:53 IST

NEW DELHI: iPhone maker Apple's contract manufacturers, as well as firms like Samsung, Lava and Dixon have proposed to produce mobile devices and components of over Rs 11 lakh crore in the next five years under the government's new scheme to boost electronics manufacturing, according to sources. The proposals submitted by the companies to the Ministry of Electronics and IT to avail benefits of the Production Link Incentives (PLI) are expected to create 12 lakh employment opportunities -- 3 lakh direct and around 9 lakh indirect jobs, a source told PTI. "Foreign companies that have submitted proposals for the scheme include Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron," the source said.

Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Taiwan-based Pegatron is a new investor in India. Apple and Samsung account for nearly 60 per cent of global sales revenue of mobile phones.

"In the next five years, mobile phones worth about Rs 9 lakh crore in the category of above Rs 15,000 per unit are expected to be produced as per the proposals submitted by the companies. Mobile phones worth about Rs 2 lakh crore are expected to be produced in the sub-Rs 15,000 category," the source said. Export demand of about Rs 7 lakh crore is expected to be met from the proposed production capacities. Indian companies that have applied under the scheme include Lava, Dixon Technologies, Micromax and Padget Electronics. "Lava has plans to invest around Rs 800 crore over the next five years under the scheme," another source aware of the submission said. The government had notified three schemes on April 1 for the promotion of electronics.

These were schemes for manufacturing of electronic components and semiconductors, modified electronics manufacturing clusters (EMC 2.0) scheme, and production-linked incentive scheme for large scale electronics manufacturing. These schemes jointly offer incentives of around Rs 50,000 crore over the period of next five years.

Electronics and IT Secretary Ajay Prakash Sawhney on June 2 had said that the schemes will push mobile production to Rs 8 lakh crore in value terms and exports worth Rs 5.98 lakh crore in the next five years. Meanwhile, around 8-10 companies have filed applications for component manufacturing which include motherboard maker AT&S, Ascent Circuits, Sahasra and Vitesco. "They are expected to produce components of over Rs 40,000 crore over the period of next five years under the scheme," an industry source said.



Samsung, Pegatron and 20 others apply for India's PLI Scheme

Pegatron, Apple’s second-largest contract manufacturer, and Samsung were among 22 companies to have commited investments worth Rs11,000 crore while applying for the government’s production-linked incentive scheme that seeks to establish India as a smartphone export hub rivalling northeast Asia’s electronics powerhouses.

By Himanshi Lohchab & Anandita Singh Mankotia, ETTelecom
Updated: August 01, 2020, 11:54 IST

New Delhi: Pegatron, Apple’s second-largest contract manufacturer, and Samsung were among 22 companies to have commited investments worth Rs11,000 crore while applying for the government’s production-linked incentive scheme that seeks to establish India as a smartphone export hub rivalling northeast Asia’s electronics powerhouses. Apple’s other two global contract manufacturers, Foxconn and Wistron have also applied for the scheme, underlining the iPhone maker’s concerted attempts to shift production away from China amid Sino-US geopolitical tensions, with India being the beneficiary.

As per government statistics for applications to the Rs 41,000-crore PLI scheme, 22 companies have sought incentives. Out of these, five international players- Samsung, Foxconn - through two units, Wistron and Pegatron and five domestic players- Lava, Dixon, Micromax, Padget Electronics, Sojo and Optiemus will be aided by the government to develop their manufacturing ecosystem in India.

This will lead to production worth Rs. 11.50 lakh crore in five years of which 60% will be exported, creating some 3 lakh direct employment and three times indirect employment, the government said in a statement. Domestic value addition in mobile phones will increase from current 15-20% to 35-40%. Besides Apple, Foxconn also makes mobile phones for market leader Xiaomi and HMD, maker of Nokia phones.

Other top Chinese players such as Oppo—which makes handsets for itself, Realme and OnePlus—and Vivo have not applied for the PLI scheme, industry executives said. The Chinese companies, including Xiaomi, had been facing a backlash in India, owing to the Sino-India border tensions. The handset companies didn’t respond to ET’s queries as of press time.

Companies who have applied for the Electronics Manufacturing Clusters (EMC) scheme include Austria-based AT&S and China-based Avary (for printed circuit boards), US-based Visicon (for assembly, testing, marking, and packaging}, Taiwanese Walsin ( for passives), German company Vitesco (for power electronics sensors) and Israeli Neolync (for actives).

Among Indian companies are Ascent Circuits (PCB), Sahasra (Passives and ATMP), ASIP (ATMP), and SFO Technologies (PCB, Sensors and ATMP).
“This will lead to production of electronics components worth Rs. 45,000 Crore, which will supply components to medical electronics, automobile, telecom, industrial and other segments of electronics,” the release said. Telecom minister RS Prasad is scheduled to hold a briefing on Saturday on the applications for the PLI scheme, which aims to incentivise large electronic manufacturers to set up production bases in the country for the local and global market.

The government had in June started inviting applications for three schemes—PLI, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme—offering a total of Rs 50,000 crore worth of incentives to attract global mobile device makers and boost local companies for electronics manufacturing. The PLI scheme, under which Rs 40,951 crore can be given out as graded incentives to domestic and global companies in the next five years, accounts for the bulk of the offerings.

Under the scheme, to avail the graded incentives ranging between 4% and 6% over a five-year period, manufacturers will have to produce high-end phones (with freight on board value of more than $200) of more than Rs 4,000 crore over and above their production level in the country in the base year. In the second, third, fourth and fifth years, manufacturers will have to produce phones worth Rs 8,000 crore, Rs 15,000 crore, Rs 20,000 crore and Rs 25,000 crore over the base year production value. If the manufacturers achieve that, it would significantly enhance annual exports of phone handsets from the existing $3 billion.

 

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Apple vendors, Samsung, others propose Rs 11 lakh crore mobile phone production under PLI scheme

The proposals submitted by the companies to the Ministry of Electronics and IT to avail benefits of the Production Link Incentives (PLI) are expected to create 12 lakh employment opportunities -- 3 lakh direct and around 9 lakh indirect jobs, a source told PTI.

PTI
August 01, 2020, 07:53 IST

NEW DELHI: iPhone maker Apple's contract manufacturers, as well as firms like Samsung, Lava and Dixon have proposed to produce mobile devices and components of over Rs 11 lakh crore in the next five years under the government's new scheme to boost electronics manufacturing, according to sources. The proposals submitted by the companies to the Ministry of Electronics and IT to avail benefits of the Production Link Incentives (PLI) are expected to create 12 lakh employment opportunities -- 3 lakh direct and around 9 lakh indirect jobs, a source told PTI. "Foreign companies that have submitted proposals for the scheme include Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron," the source said.

Foxconn Hon Hai, Wistron and Pegatron are contract manufacturers for Apple iPhones. Taiwan-based Pegatron is a new investor in India. Apple and Samsung account for nearly 60 per cent of global sales revenue of mobile phones.

"In the next five years, mobile phones worth about Rs 9 lakh crore in the category of above Rs 15,000 per unit are expected to be produced as per the proposals submitted by the companies. Mobile phones worth about Rs 2 lakh crore are expected to be produced in the sub-Rs 15,000 category," the source said. Export demand of about Rs 7 lakh crore is expected to be met from the proposed production capacities. Indian companies that have applied under the scheme include Lava, Dixon Technologies, Micromax and Padget Electronics. "Lava has plans to invest around Rs 800 crore over the next five years under the scheme," another source aware of the submission said. The government had notified three schemes on April 1 for the promotion of electronics.

These were schemes for manufacturing of electronic components and semiconductors, modified electronics manufacturing clusters (EMC 2.0) scheme, and production-linked incentive scheme for large scale electronics manufacturing. These schemes jointly offer incentives of around Rs 50,000 crore over the period of next five years.

Electronics and IT Secretary Ajay Prakash Sawhney on June 2 had said that the schemes will push mobile production to Rs 8 lakh crore in value terms and exports worth Rs 5.98 lakh crore in the next five years. Meanwhile, around 8-10 companies have filed applications for component manufacturing which include motherboard maker AT&S, Ascent Circuits, Sahasra and Vitesco. "They are expected to produce components of over Rs 40,000 crore over the period of next five years under the scheme," an industry source said.



Samsung, Pegatron and 20 others apply for India's PLI Scheme

Pegatron, Apple’s second-largest contract manufacturer, and Samsung were among 22 companies to have commited investments worth Rs11,000 crore while applying for the government’s production-linked incentive scheme that seeks to establish India as a smartphone export hub rivalling northeast Asia’s electronics powerhouses.

By Himanshi Lohchab & Anandita Singh Mankotia, ETTelecom
Updated: August 01, 2020, 11:54 IST

New Delhi: Pegatron, Apple’s second-largest contract manufacturer, and Samsung were among 22 companies to have commited investments worth Rs11,000 crore while applying for the government’s production-linked incentive scheme that seeks to establish India as a smartphone export hub rivalling northeast Asia’s electronics powerhouses. Apple’s other two global contract manufacturers, Foxconn and Wistron have also applied for the scheme, underlining the iPhone maker’s concerted attempts to shift production away from China amid Sino-US geopolitical tensions, with India being the beneficiary.

As per government statistics for applications to the Rs 41,000-crore PLI scheme, 22 companies have sought incentives. Out of these, five international players- Samsung, Foxconn - through two units, Wistron and Pegatron and five domestic players- Lava, Dixon, Micromax, Padget Electronics, Sojo and Optiemus will be aided by the government to develop their manufacturing ecosystem in India.

This will lead to production worth Rs. 11.50 lakh crore in five years of which 60% will be exported, creating some 3 lakh direct employment and three times indirect employment, the government said in a statement. Domestic value addition in mobile phones will increase from current 15-20% to 35-40%. Besides Apple, Foxconn also makes mobile phones for market leader Xiaomi and HMD, maker of Nokia phones.

Other top Chinese players such as Oppo—which makes handsets for itself, Realme and OnePlus—and Vivo have not applied for the PLI scheme, industry executives said. The Chinese companies, including Xiaomi, had been facing a backlash in India, owing to the Sino-India border tensions. The handset companies didn’t respond to ET’s queries as of press time.

Companies who have applied for the Electronics Manufacturing Clusters (EMC) scheme include Austria-based AT&S and China-based Avary (for printed circuit boards), US-based Visicon (for assembly, testing, marking, and packaging}, Taiwanese Walsin ( for passives), German company Vitesco (for power electronics sensors) and Israeli Neolync (for actives).

Among Indian companies are Ascent Circuits (PCB), Sahasra (Passives and ATMP), ASIP (ATMP), and SFO Technologies (PCB, Sensors and ATMP).
“This will lead to production of electronics components worth Rs. 45,000 Crore, which will supply components to medical electronics, automobile, telecom, industrial and other segments of electronics,” the release said. Telecom minister RS Prasad is scheduled to hold a briefing on Saturday on the applications for the PLI scheme, which aims to incentivise large electronic manufacturers to set up production bases in the country for the local and global market.

The government had in June started inviting applications for three schemes—PLI, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme—offering a total of Rs 50,000 crore worth of incentives to attract global mobile device makers and boost local companies for electronics manufacturing. The PLI scheme, under which Rs 40,951 crore can be given out as graded incentives to domestic and global companies in the next five years, accounts for the bulk of the offerings.

Under the scheme, to avail the graded incentives ranging between 4% and 6% over a five-year period, manufacturers will have to produce high-end phones (with freight on board value of more than $200) of more than Rs 4,000 crore over and above their production level in the country in the base year. In the second, third, fourth and fifth years, manufacturers will have to produce phones worth Rs 8,000 crore, Rs 15,000 crore, Rs 20,000 crore and Rs 25,000 crore over the base year production value. If the manufacturers achieve that, it would significantly enhance annual exports of phone handsets from the existing $3 billion.


This is what Chienese are scared off. The way Chinese grabbed high tech manufacturing from all over the world, now India has the potential to do the same.
 

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Eye on China, India looks to increase barriers on imports from Asia


By Reuters
Last Updated: Aug 04, 2020, 09:42 AM IST
Synopsis

Last week, India's trade ministry issued a notice to restrict inbound shipments of TVs by requiring importers to get a special licence.



NEW DELHI: New Delhi is considering measures to prevent trade partners mainly in Southeast Asia from re-routing Chinese goods to India with little added value, two government sources said, amid strained ties with Beijing and a push for self-reliance. India is planning to raise quality standards of imports, impose quantity restrictions, mandate stringent disclosure norms and initiate more frequent checks at ports of entry for goods coming from many Asian countries, the officials said, declining to be named as they were not authorised to talk to the media.

The moves will mainly target imports of base metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions, among other items, the officials said. Last week, India's trade ministry issued a notice to restrict inbound shipments of TVs by requiring importers to get a special licence. The moves are expected to primarily hurt Malaysia, Thailand, Vietnam and Singapore - members of the Association of Southeast Asian Nations (ASEAN) with which India has a free trade agreement (FTA). India is also worried about heavy trade flows from South Korea.

"Raising duties has a limited impact," said one of the officials. "Now we want to raise quality standards and also make sure that goods in FTA routes have roots in those countries. So customs would be more vigilant than before". India's trade ministry did not immediately reply to an email seeking comment.

The government will also discuss raising the value-addition requirement for products imported from those countries from the current level of 20%-40%, the official said, adding FTAs could be reviewed too. "A lot of the Asian partners have become a place from where just Chinese goods are routed. We are going product by product to design various kinds of action, most of which will be on non-tariff lines," the official added.

India has long had an uneasy relationship with China and a Himalayan border dispute escalated into the worst clash in decades in June. India said 20 of its soldiers were killed.

China is also India's second-biggest trading partner, with trade worth $87 billion in the fiscal year ending March 2019, and a trade deficit of $53.57 billion in China's favour, the widest India has with any country. Thai and Malaysian authorities said they had not received any official communication on the issues of raising non-tariff barriers or re-routing of goods. Thailand's trade ministry said in a statement to Reuters that the ASEAN treaty should be reviewed to make it more liberal in terms of tariff liberalization and rules of origin and to have simpler customs and verification procedures.

Meanwhile, Indian officials said the government was inclined to only stick to those FTAs that it deems mutually beneficial. India has a trade deficit with most of the countries it has signed FTAs with. "Very clearly in ASEAN agreements India has got, in many respects, the bad end of the stick, particularly in the field of electronics where we now find a number of products are being routed through the ASEAN economies to India," said George Paul, CEO of the Manufacturers' Association for Information Technology.

 
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Gautam

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So Lava launched a new phone. Reading up on it I found something interesting :


Apparently Lava plans to shift its complete mobile design centres and manufacturing lines to India by the end of this year.


They already make more than 30% of their phones in India. Lava and Micromax have also managed to rake up a few deals in 2019 from US telecom companies : AT&T, T-mobile and Sprint to make sub-$200 category smartphones in their India facility. The order was worth around Rs 2,500 crore and the phones will be branded AT&T and so on.


We still have a long way to go. But electronics industry is growing steadily.
 

Gautam

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Gautam

Team StratFront
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Tripura, NE, India
So Lava launched a new phone. Reading up on it I found something interesting :


Apparently Lava plans to shift its complete mobile design centres and manufacturing lines to India by the end of this year.


They already make more than 30% of their phones in India. Lava and Micromax have also managed to rake up a few deals in 2019 from US telecom companies : AT&T, T-mobile and Sprint to make sub-$200 category smartphones in their India facility. The order was worth around Rs 2,500 crore and the phones will be branded AT&T and so on.


We still have a long way to go. But electronics industry is growing steadily.

After Lava now Micromax wants to make a comeback.

 

Gautam

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Over two dozen companies pledge $1.5 billion to set up mobile-phone factories in India

The government expects its incentive program for electronics alone could lead to $153 billion worth of manufactured goods over the next five years and create about one million jobs directly and indirectly.

By Bloomberg
August 17, 2020, 08:42 IST
1597688758688.png


India’s latest set of incentives to entice businesses moving away from China seem to be working, with companies from Samsung Electronics Co. to Apple Inc.’s assembly partners showing interest in investing in the South Asian nation.

Prime Minister Narendra Modi’s government in March announced incentives that make niche firms -- electronics manufacturers -- eligible for a payment of 4%-6% of their incremental sales over the next five years. The result: about two dozen companies pledged $1.5 billion of investments to set up mobile-phone factories in the country.

Besides Samsung, those that have shown interest are Hon Hai Precision Industry Co., known as Foxconn, Wistron Corp. and Pegatron Corp. India has also extended similar incentives to pharmaceutical businesses, and plans to cover more sectors, which may include automobiles, textiles, and food processing under the program.

While companies have been actively looking to diversify supply chains amid the U.S.-China trade tensions and the coronavirus outbreak, it hasn’t yet translated into big gains for India despite the nation making it cheaper for businesses to open shop. Vietnam remains the most favored destination, followed by Cambodia, Myanmar, Bangladesh and Thailand, according to a recent survey by Standard Chartered Plc.

1597688692475.png


“There is a reasonable chance for India to gain in terms of incremental investment of supply chains within the country over the medium term,” said Kaushik Das, chief India economist at Deutsche Bank AG in Mumbai. “These programs are aimed at increasing India’s manufacturing share in the gross domestic product.”

The government expects the program for electronics alone could lead to $153 billion worth of manufactured goods over the next five years and create about one million jobs directly and indirectly.

This would bring an additional investment of $55 billion over five years, adding 0.5% to India’s economic output, according to analysts led by Neelkanth Mishra at Credit Suisse Group AG. This could shift an additional 10% of global smart-phone production to India in five years, most of it from China, they wrote in a report Aug. 10.

That complements Modi’s goal to grow the share of manufacturing in the economy to 25% from the current around 15% as part of his ‘Make in India’ program. His government has already lowered taxes on companies to among the lowest in Asia, seeking to attract new investments in an economy headed for its first contraction in more than four decades this year.

The latest output-linked incentive plan is a “big win for Make in India,” Amish Shah, an analyst at BofA Securities, said in a report to clients. He sees gains for industrials, cement, pharmaceuticals, metals and logistics, with long-term indirect benefits across many sectors.

 

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$2.7bn by 2023, big players enter race for e-pharma pie
FROM AMAZON to Reliance, major players have entered the race to scale up, consolidate and corner a share of the online pharmacy market, which is expected to swell seven-fold to $2.7 billion by 2023.

In just the last one week, with Covid numbers yet to flatten across the world, the market saw two significant merger and acquisition deals — Reliance Retail picking up majority stake in Chennai-based e-pharmacy Netmeds, and PharmEasy moving to merge with smaller rival Medlife. And the launch of e-commerce giant Amazon’s online drug delivery services.

At the same time, the Centre announced the National Digital Health Mission (NDHM), which envisages a digital health ecosystem on the lines of the Unified Payments Interface in the online payment space.

On Tuesday, Reliance Industries announced that its arm, Reliance Retail Ventures Ltd, has acquired a majority equity stake in Vitalic Health Pvt Ltd, the parent company of Netmeds, and its subsidiaries for a cash consideration of around Rs 620 crore. This investment represents 60 per cent holding in the equity capital of Vitalic and 100 per cent direct equity ownership of its subsidiaries, Tresara Health Private Ltd, Netmeds Market Place Ltd and Dadha Pharma Distribution Pvt Ltd.

Further, documents filed with the Competition Commission of India (CCI) show that online pharmacies, PharmEasy and Medlife, have requested a merger.

Last week, Amazon said it was starting Amazon Pharmacy in Bengaluru to let its customers order prescription-based medication in addition to over-the-counter medicine, basic health devices and Ayurveda medication from certified sellers.

While the NDHM may prove to be a shot in the arm for the broader online healthcare market, once it’s fully rolled out, experts are of the view that inherent challenges faced by physical pharmacies have given a chance for online counterparts to flourish. However, to challenge the pharmacies, which account for nearly 85 per cent of India’s total pharmaceutical sales, the online versions will need to scale up, and this is where consolidation comes into play.

“In smalltown India, the network of chemists is still very primitive. Further, the full range of products that is needed today is available with a very few pharmacies. These include over-the-counter drugs, localised prescription medicines, nutraceuticals, health supplements, alternative medicine products, basic medical devices, etc. Digital pharmacies try to solve these problems from a customer’s point of view. All of these things mean that the existing pharmacy network is poised for disruption,” said Arvind Singhal, chairman, Technopak, a management consultancy.

“Like every other e-commerce business, you need a significant amount of investment to build the delivery infrastructure. This is where consolidation is being forced by the investors,” he said.

According to a report by EY, e-pharma presents a total addressable market size of around $9.3 billion as of 2019 and is estimated to grow at a compounded annual growth rate of 18.1 per cent to reach $18.1 billion by 2023, when the actual market size will reach $2.7 billion.

The growth, it said, will be driven by an increase in the targetable acute medicine market as a result of more efficient last-mile delivery through collaboration with local pharmacies and partnership with hyperlocal delivery companies resulting in a shorter delivery time.

Further, even as a delay in notification of draft e-pharmacy rules and rigorous opposition from offline chemists have kept a check on investments in the sector, existing companies have flourished amid the lack of a strict regulatory environment.

According to the EY report, Indian regulations for the e-pharmacy segment were the least strict, when compared to the US, Europe and China.

Further, unlike the US, where the top three pharmaceutical distributors have a 90 per cent share in the market, India’s is a fragmented market with over 8 lakh pharmacies — this gives online pharmacies an opportunity to capture their space without opposing large traditional retailers.

Currently, companies in the Indian e-pharmacy space mainly operate three business models — marketplace, inventory-led hybrid (offline/online) and franchise-led hybrid (offline/online) — depending on the way the supply chain is structured.

In addition to companies like Netmeds, Medlife and PharmEasy, other players in the segment include online healthcare startups such as 1mg, Practo, Myra as well as traditional chemists such as Apollo Pharmacy.
iPhone 12 will be Made in India as Apple supplier hires 10,000 local employees for production
Wistron, Apple’s Taiwanese manufacturer, has started the hiring processes for the local production of iPhone 12 components in India. The Made in India iPhone 12 will be out by the middle of next year, a report by Business Standard stated. Wistron has planned to invest over 2,900 crores in India to ramp up the efforts for the local production of iPhone.

The setup for iPhone production at the Narasapura plant is located in Kolar district, about 70 km from Bengaluru, New Indian Express noted. Wistron was allotted 43 acres by the Karnataka Industrial Areas Development Board (KIADB) when it announced its plans for production in 2017. As per the report, the manufacturing company at Kolar is supposed to generate 10,000 jobs. Wistron has already hired 2,000 locals.

Sources familiar with the matter told the New Indian Express that the hiring will take place in a phased manner. As of now, walk-in interviews of diploma graduates are being conducted. More interviews with experienced people, as well as freshers, will be held soon. Wistron has started trial production and by September it will start the commercial production of iPhones in Kolar.

It is not clear which product will be assembled in the manufacturing unit. However, reports in the past have stated that Wistron’s manufacturing units at its new plant in southern India will assemble printed circuit boards (PCBs) for iPhones.

PCB is a bed for key components such as processors, memory, and wireless chipsets that are the heart of an electronic device. Once assembled or populated with components, PCBs account for about half the cost of a smartphone, Reuters noted.

The local production of iPhones will save on the 22 per cent import taxes and create new job opportunities for the locals in India. The iPhone 12 will be the seventh iPhone model to be manufactured in India, giving a boost to the government's 'Aatmanirbhar Bharat' initiative. Apple has so far produced a number of iPhone models locally including the iPhone SE (first generation), iPhone 6S, iPhone 7, iPhone XR, and iPhone 11. The local production of iPhone SE (second generation) is also slated to begin shortly.

Last month, Wistron’s rival Foxconn started producing iPhone 11 at its Chennai plant. It was the first time Apple manufactured a top-of-the-line model in India. After beginning the production of iPhone 11 in India, Apple is looking at the local production of iPhone 12 and assembly of iPhone SE (second generation) models. iPhone 12 is slated to release sometime in October.

Apple, which still makes most of its iPhones in China, has gradually moved to expand production in Washington and Beijing as per a report by Reuters.
 
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Uttar Pradesh: Electronics policy aims at Rs 40,000 crore investment in 5 years

The policy aims at bringing in investments of Rs 40,000 crore in the electronic manufacturing sector over the next five years and generate employment for 4 lakh persons in the state.

By Neha Lalchandani, TNN
August 19, 2020, 13:34 IST
1597939202895.png


LUCKNOW: In an effort to make Uttar Pradesh a hub for electronic manufacturing, seeking especially to attract foreign investors to the state, the government has brought in a new UP Electronics Manufacturing Policy, 2020.

The policy aims at bringing in investments of Rs 40,000 crore in the electronic manufacturing sector over the next five years and generate employment for 4 lakh persons in the state. The current policy, issued in 2017, is applicable to units being set up in Noida, Greater Noida and the Yamuna Expressway regions.

1597939120053.png


The new policy, while extending the benefits being given to these areas, will be applicable across the state and will seek to establish three electronics manufacturing clusters focusing on mobile manufacturing, consumer durables, telecom, IT hardware, medical equipment, defense etc in the state.

Double subsidy in Bundelkhand and Purvanchal

Due to the earlier policy, Noida, Greater Noida and Yamuna Expressway regions have been established as one of the emerging mobile manufacturing hubs in the world which has attracted foreign direct investments from many countries. More than 60% of all mobile phones manufactured in India are from UP,” said Alok Kumar, additional chief secretary (Industries, IT and Electronics).

While the policy provides attractive sops to investors, it also seeks to invite investments to eastern UP areas which have traditionally been ignored. For instance, double the rate of land subsidy has been provided to investors for setting up manufacturing units in Bundelkhand and Purvanchal regions.

“For promotion of MSMEs in the sector, the government will encourage development rental facilities on plug and play model through PPP mode. It also seeks to create world class infrastructure in the form of centers of excellence to promote research, innovation and entrepreneurship by establishing three centres of excellence to support MSMEs,” Kumar said.

Among the incentives provided by the policy are capital subsidy of 15% and an additional capital subsidy of 10% on investment of more than Rs 1,000 crore. An interest subsidy of 5% per annum will be offered on loans from scheduled banks and financial institutions, stamp duty exemption, land subsidy, patent cost reimbursement and electricity duty exemption.

For investment in Bundelkhand and Purvanchal, 50% subsidy will be given on prevailing sector rates on purchase of land. For foreign investors, the policy will allow refurbished plant and machinery up to 40% of the fixed capital investment.

The incentives offered under the new policy will be up to 100% of the fixed capital investment and will be over and above the incentives given by the Centre. The policy will be valid for five years from the date of notification and a nodal agency will be set up under the IT department for its implementation.


 
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Karnataka Announces Major Incentives For Electronic Design And Manufacturing Sector Including Land Subsidy

by IANS
Aug 20, 2020 05:28 PM
1597987588545.png

Smartphone assembly in India - Representative Image (@AmitHPanchal/Twitter)

Aimed at attracting investments and boosting competitiveness in the Electronic System Design and Manufacturing (ESDM) sector in Karnataka, the state government has announced a slew of incentives, including 25 per cent capital investment subsidy on land, a minister said on Wednesday.

"The government of Karnataka has announced a slew of incentives including capital investment subsidy of 25 per cent on the required land," said Deputy Chief Minister C N Ashwath Narayan.






On Wednesday, he delivered the inaugural address of IESA Vision Summit - 2020 in virtual and made these announcements. The subsidy is applicable on lands extending up to 50 acres and outside Bengaluru Urban and Rural districts.

Other attractive incentives include 100 per cent stamp duty and registration charges reimbursement, 100 per cent reimbursement on land conversion fee, power tariff subsidy of Rs 1 per unit for duration of five years from the month of commencement of commercial production and 100 per cent electricity duty exemption for the same duration among others.

Likewise, the government will also offer 1 per cent production linked incentive(PLI) for new investments and expansions on annual turnover for a period of five years from start of operations. "Products and activities eligible for incentives under special incentives scheme for the ESDM Sector have been identified and this comprises manufacturing and design of electronics products, semiconductor manufacturing and design, electronic manufacturing services and solar cell manufacturing," he said.

Similarly, LED and any other electronics verticals products covered by the national policy on electronics (NPE) and national manufacturing policy (NPM) and related notifications as issued by the Government of India from time to time are also eligible. The state government will also provide acknowledgement certificates to companies after obtaining approvals from relevant clearance committees which will be deemed as approval for downstream approvals by various other departments for an initial period of three years.

Recently, the government constituted a dedicated MNC engagement cell to act as a single point of engagement for all technology MNCs in the state to engage with the government.

"The objectives of this are to develop an engagement platform for overall innovation ecosystem development, to understand the needs of the MNCs and GCCs to provide handholding support for resolution of issues with all state government entities such as BBMP, Health Department, Industries Department, Urban Development Department and KSPCB," said Narayan.

'Karnataka Digital Economy Mission' has also been set up in consultation with the industry to promote digital industry growth and investments.

 

Gautam

Team StratFront
Feb 16, 2019
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Govt looks to expand list of domestic manufacturers under PLI scheme

The Rs 41,000 crore scheme, which aims to generate additional production of nearly Rs 12 lakh crore over the next five years, will also have five international players that include four top contract manufacturers of American electronics giant Apple, apart from Korean major Samsung.

Pankaj Doval
TNN
Updated: August 22, 2020, 12:43 IST
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NEW DELHI: In a decision that will give a major boost to electronics manufacturing by homegrown companies, the government is looking to expand the list of domestic manufacturers targeted for the ambitious production-linked incentive (PLI) scheme for mobile phones to seven against the five that is currently stipulated. This could be through the expansion of the present scheme, or by calling out another package to include the additional ones.

The Rs 41,000 crore scheme, which aims to generate additional production of nearly Rs 12 lakh crore over the next five years, will also have five international players that include four top contract manufacturers of American electronics giant Apple (Foxconn Hon Hai, Rising Star, Wistron and Pegatron), apart from Korean major Samsung.

From the domestic side, a total of seven companies had applied for the incentive scheme even though the original plan from the government is for five players. These seven entities are two companies each from Lava group (Lava and Sojo) and Dixon Technologies (Dixon and Padget Electronics), apart from single applications from Bhagwati (Micromax), Optiemus Infra and United Tele (of Karbonn group). The thinking within the government is that all the seven domestic companies that have applied for the incentive should be called in. "If the companies are ready to invest and comply with the guidelines for turnover and investments, they should be given a chance," a source told TOI.

The Rs 41,000 crore scheme, which aims to generate additional production of nearly Rs 12 lakh crore over the next five years, will also have five international players that include four top contract manufacturers of American electronics giant Apple (Foxconn Hon Hai, Rising Star, Wistron and Pegatron), apart from Korean major Samsung.

The last date for filing of the application was July 31, and the applications are now being verified by an empowered committee, following which it goes to a high-powered multi-ministry Empowered Committee (EC).

Another source said that the changes to the scheme structure could be made at this stage for widening the scope allocated for the domestic makers. The government is hoping to attract fresh investments to the tune of Rs 11,000 crore through the scheme which is likely to generate 3 lakh direct jobs and 9 lakh indirect ones.