- Dec 3, 2017
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.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.
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.
Apple vendors, Samsung, others propose Rs 11 lakh crore mobile phone production under PLI scheme - ET TelecomThe proposals submitted by the companies to the Ministry of Electronics and IT to avail benefits of the Production Link Incentives (PLI) are expected ..telecom.economictimes.indiatimes.com
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.
Pegatron, Apple’s second-largest contract manufacturer, and Samsung were among 22 companies to have commited investments worth Rs11,000 crore while ..telecom.economictimes.indiatimes.com
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.
In a first, US cos AT&T, T-Mobile and Sprint place orders worth ?2,500 cr; Lava and Micromax to de-risk their businesseconomictimes.indiatimes.com
We still have a long way to go. But electronics industry is growing steadily.