Now the production of electronic components is concentrated in regions that are not the most prosperous in terms of force majeure factors. China is under political pressure from the US, Taiwan and Japan are hit by earthquakes, and South Korea has a militant neighbor to the north. In this situation, India can become a production location without such risks.
He shared these reflections on the industry conferences in Malaysia, the head of Tata Technologies, Raja Manickam, a semiconductor testing and packaging company. First, he considers the favorable geographic location of India, which has access to waterways for the transportation of goods. Second, natural disasters are not as often devastating to businesses in this country as they are in other regions of Southeast Asia. Third, the country has good human resource potential and its relatively young population is able to meet the impressive volume of consumer demand.
This year alone, the Indian authorities have already committed $10 billion to fund the development of the country’s electronics industry. Many major semiconductor developers already have research centers in India. It was logical, according to the head of Tata Technologies, when manufacturing companies appeared around them.
DBS Bank forecasts that India’s overall semiconductor sector will grow at an average of 18.8% per year and will reach a capacity of US$64 billion by 2026. The country is set to attract more and more investment as many manufacturers look to the “China plus one” transfer of some of China’s businesses to neighboring countries.