What Display Daily Thinks: Whatever the stumbles are for foreign investment in India’s display industry, it doesn’t change the fact that the country is going to be a major market, and supplier of display products in the next decade. The country will have to do a lot more regulatory cleansing to help manufacturers move things along and that may be difficult giving the inherent dynamics of local government power, and the lack of infrastructure to support semiconductor and display manufacturing. However, it is the world’s most populace country and has been home to many of the world’s top technology companies for decades. There is also a tremendous amount of intent on the part of Indian expats, many from Silicon Valley and holding the highest level positions in tech companies, who are eager to seize opportunities to establish semiconductor manufacturing in India. It’s a perfect storm of opportunity.
It’s just going to be a learning curve for display manufacturers to get setup in the country. Once they are up and running, there’s a lot to be said for the outsized potential of the country.
Foxconn, Vedanta, and India’s Display Industry
In 2022, Vedanta and Foxconn announced a $19.5 billion joint venture to set up semiconductor and display production plants in India. The project was seen as a major boost to India’s efforts to become a global hub for chipmaking. However, recently, Foxconn announced that it was withdrawing from the joint venture. The company cited a number of reasons for its decision, including the slow progress of the project and the lack of a clear path to profitability. The project was facing delays due to regulatory approvals and land acquisition issues. There was no clear path to profitability for the project. The Indian government was pushing for STMicroelectronics to have a larger stake in the partnership, which STMicroelectronics was not keen on.
Vedanta has said that it is still committed to the project and that it is in talks with other potential partners. However, the withdrawal of Foxconn is a significant setback for India’s chipmaking ambitions. The company has reorganized itself and committed to building out a semiconductor and display manufacturing business as a directly controlled part of its group operations.
The Make in India Program
The Make in India program is a government initiative launched in 2014 to attract foreign investment and boost manufacturing in India. The program has had some success, but it is still too early to say whether it will achieve its full potential.
Some of the successes of the Make in India program include:
- The growth of the automotive sector. India is now the world’s sixth largest automobile market, and the Make in India program has helped to attract investment from major automakers such as Maruti Suzuki, Hyundai, and Tata Motors.
- The growth of the electronics sector. India is now a major producer of smartphones and other electronic goods. The Make in India program has helped to attract investment from major electronics companies such as Samsung, Apple, and Foxconn.
- The creation of jobs. The Make in India program has helped to create millions of jobs in the manufacturing sector.
However, the Make in India program has also faced some challenges, including:
- Land acquisition issues. This has made it difficult for companies to set up manufacturing plants in India.
- The complex regulatory environment. This has made it difficult for companies to comply with all the necessary regulations.
- The lack of skilled workers. India has a shortage of skilled workers in the manufacturing sector.
In addition to the challenges mentioned above, the Make in India program has also been criticized for its lack of focus on small and medium-sized enterprises (SMEs). SMEs are the backbone of the Indian economy, and they play a vital role in manufacturing. However, the Make in India program has not done enough to help SMEs grow and succeed. Despite the challenges, the Make in India program has the potential to be a major success. If the government can address the challenges and focus on helping SMEs, the program could help to transform India into a global manufacturing hub.
