Foxconn, Oppo, others may go for 41k-cr PLI sops
ET Bureau|Last Updated: Jun 03, 2020, 09.08 AM IST
NEW DELHI: Top global players such as Foxconn and Wistron, manufacturers of Apple phones, Flex, Samsung, Oppo and Vivo are likely to apply for a production-linked incentive scheme (PLI) worth Rs 41,000 crore as part of India’s massive push to wean away companies from China and emerge as the world’s hub for electronics production.
“There are five to six companies which control 80% of smartphone manufacturing across the globe… initially, we wish to help (these) five global champions in establishing a wide manufacturing base in the country,” IT and telecom minister RS Prasad said at a briefing Tuesday. “The scheme will also initially help develop five domestic champions.”
Prasad dispelled concerns that India’s policy of self-reliance was inward looking, saying, “A self-reliant robust India is not against any country,” and added that the government hopes to ramp up exports of mobile phones from the country to $110 billion from the current under $3 billion.
Tuesday, the government 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 as well as global companies over the next five years, makes a bulk of the offerings.
“We have achieved a modest success in making India the second largest manufacturer of mobile phones in the last six years and today we are announcing these schemes to make India the largest producer,” Prasad said.
Ajay Sahni, secretary at the ministry of electronics and information technology, added that India wants to achieve a significant ramp up in its electronics manufacturing base, in line with China and South Korea.
The minister didn’t divulge names of any companies that had evinced interest but officials said that all major global players including Apple, Samsung, Oppo, Vivo, Xiaomi, Foxconn, Wistron and Flex had shown interest in applying.
Mails to Apple, Samsung, Oppo, Vivo and Foxconn went unanswered.
Handset market leader Xiaomi's chief operating officer for India, Muralikrishnan B, said that the schemes, especially SPECS that helps overcome disabilities of manufacturing electronic components in India, “will provide the needed impetus to increase the manufacturing capacity of the country”.
Flex and Wistron, and industry associations such as India Cellular and Electronics Association (ICEA), which represents handset brands such as Xiaomi, Oppo, Vivo, Apple and Lava, and contract manufactures such as Foxconn, termed the development as a game changer for the industry.
In a statement, David Shen, CEO of Wistron India, said, “Wistron is looking forward to further expanding our customer base in India”. Wistron makes Apple iPhones on the outskirts of Bengaluru.
Arijit Sen, director at US contract manufacturer Flex, said that the industry must identify the low-hanging fruits which can be brought to India in the near term.
“We can't manufacture every part of every product. But the three areas in the ESDM (electronics system design & manufacturing) sector which can be brought to India in two years’ time are PCBAs (printed circuit board assembly), display and the energy source (or battery packs),” Sen said in an industry webinar on Tuesday.
Flex India runs three factories in India, which manufacture smartphones for Xiaomi, Motorola and Lenovo.
Sen added that India needed to revisit some free-trade agreements (FTAs), which allow zero duty export to India. “For example, due to the Indo-Asean FTA, many countries are routing their products to India via Vietnam.”
Hari Om Rai, chairman of domestic handset brand Lava, said the schemes would help the company to acquire skills and technologies for global competitiveness.
Contract manufacturer Dixon, which currently manufactures for Samsung, Xiaomi and Panasonic, said it is going through the guidelines and will soon apply for the scheme.
Under the PLI scheme, to avail the graded incentives ranging between 4% and 6% over a five year period, foreign 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 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 to avail the incentives.
Top global players such as Foxconn and Wistron, manufacturers of Apple phones, Flex, Samsung, Oppo and Vivo are likely to apply for a production-linked incentive scheme (PLI) worth 41,000 crore as part of Indias massive push to wean away companies from China and emerge as the worlds hub for...
economictimes.indiatimes.com
Top global players including Foxconn and Wistron, Flex, Samsung, Oppo and Vivo are set to apply for the production-linked incentive scheme (PLI) worth Rs 41,000 crore that was unveiled by the Union government as part of its effort to catapult the country as a hub for electronics production, The...
swarajyamag.com
Besides Mobile phones, the specified components that will be covered under the scheme include
- SMT(Surface Mount Technologies) components,
- Discrete semiconductor devices including transistors, diodes, thyristors, etc.
- Passive components including resistors, capacitors, etc. for electronic applications Printed Circuit Boards (PCB), PCB laminates, prepregs, photopolymer films, PCB printing inks
- Sensors, transducers, actuators, crystals for electronic applications
- System in Package (SIP)
- Micro / Nano-electronic components such as Micro Electromechanical Systems (MEMS) and Nano Electromechanical Systems (NEMS)
- Assembly, Testing, Marking and Packaging (ATMP) units