Indian electronics manufacturers forge more and more partnerships with companies from South Korea, Taiwan, Japan
Kolkata: Indian electronics manufacturers are increasingly forging partnerships with companies from South Korea, Taiwan, and Japan, or pursuing projects independently, seeking to navigate unpredictable geopolitical ties between New Delhi and Beijing that’s prolonging regulatory approvals for corporate alliances in both countries.
The shift also aligns with Prime Minister Narendra Modi government's push over the past few years to diversify sourcing and technology partnerships beyond China as part of its strategy to build self-reliance in electronics manufacturing.
Over the past four to five months, companies such as Dixon Technologies, Amber Enterprises, PG Electroplast, Epack Durable, and Syrma SGS Technology have signed or operationalised at least eight such partnerships for producing electronic parts and finished products to cater to the domestic market and overseas.
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Dixon is set to operationalise a manufacturing joint venture with Taiwan's Inventec Corp for laptops, servers, desktops and related components. Earlier in June, it also signed a binding term sheet with Taiwan's Gemtek Technology to form a JV for manufacturing telecom products such as optical transceivers.
"Dixon's growth will happen through partnerships all over the globe,” said Atul Lall, managing director at Dixon, also a contract manufacturer for brands such as Samsung, Xiaomi, Motorola, Haier and Philips. “This will also help us to derisk and reduce complete dependence on China.”
Incidentally, Dixon's proposed JV with Chinese smartphone maker Vivo has been awaiting approval from the Indian government for more than a year.
A fortnight ago, Syrma SGS signed a pact with Japan's Kaga Electronics to set up a joint venture electronics manufacturing plant in India focused on serving Japanese customers. Epack Durable, meanwhile, plans to operationalise its proposed JV with South Korea's Bumjin Electronics to produce smart audio devices in the country.
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India's largest AC contract manufacturer, Amber Enterprises, last week broke ground on its printed circuit board manufacturing plant being set up with South Korea's Korea Circuit Co.
To be sure, the growing number of non-Chinese partnerships doesn’t diminish China's technological edge or cost competitiveness in electronics manufacturing, according to industry executives.
The shift also aligns with Prime Minister Narendra Modi government's push over the past few years to diversify sourcing and technology partnerships beyond China as part of its strategy to build self-reliance in electronics manufacturing.
Over the past four to five months, companies such as Dixon Technologies, Amber Enterprises, PG Electroplast, Epack Durable, and Syrma SGS Technology have signed or operationalised at least eight such partnerships for producing electronic parts and finished products to cater to the domestic market and overseas.
Also read | A pail of water may unleash India's Rs 20 lakh crore opportunity
Dixon is set to operationalise a manufacturing joint venture with Taiwan's Inventec Corp for laptops, servers, desktops and related components. Earlier in June, it also signed a binding term sheet with Taiwan's Gemtek Technology to form a JV for manufacturing telecom products such as optical transceivers.
"Dixon's growth will happen through partnerships all over the globe,” said Atul Lall, managing director at Dixon, also a contract manufacturer for brands such as Samsung, Xiaomi, Motorola, Haier and Philips. “This will also help us to derisk and reduce complete dependence on China.”
Incidentally, Dixon's proposed JV with Chinese smartphone maker Vivo has been awaiting approval from the Indian government for more than a year.
A fortnight ago, Syrma SGS signed a pact with Japan's Kaga Electronics to set up a joint venture electronics manufacturing plant in India focused on serving Japanese customers. Epack Durable, meanwhile, plans to operationalise its proposed JV with South Korea's Bumjin Electronics to produce smart audio devices in the country.
Also read | India's youngest self-made billionaire is looking for a room on D-Street
India's largest AC contract manufacturer, Amber Enterprises, last week broke ground on its printed circuit board manufacturing plant being set up with South Korea's Korea Circuit Co.
To be sure, the growing number of non-Chinese partnerships doesn’t diminish China's technological edge or cost competitiveness in electronics manufacturing, according to industry executives.
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