What Display Daily thinks: Asian vendors are going to find India a verdant playground for their tech products. While the infrastructure issues may be daunting, there is a thriving retail opportunity, low labor costs, and a very, very big audience, and a highly technical one at that.
The display industry seems to be very focused on the IT sector right now because that’s where the growth and the big money seems to be. India is going to be island all to itself in the same way that the Chinese market is, but without the requisite base of home grown hardware. I doubt that will change for the foreseeable future because the country’s IT services sector is so strong and dominant, a major force worldwide. So, there’s the opportunity for the display industry and its partners in the IT manufacturing world. There’s also a seemingly endless appetite for incentives to drive Make in India.
Tread cautiously. The Indian market is also subject to a capriciousness. It’s a very diverse and complicated market with a lot of moving parts. What could be more fun than a wild ride in a market with a billion and half consumers?
Major PC Manufacturers Acer and Asustek Ramp Up Production in India in Response to Local Manufacturing Push
In a move that bolsters India’s tech manufacturing sector, two of the world’s leading PC makers, Acer and Asustek, have announced plans to increase their manufacturing presence in the country. This decision comes as India introduces tighter import restrictions aimed at enhancing the local technology industry. Both companies, hailing from Taiwan, have expressed their views on the importance of local production in India as a long-term strategy, signaling a major shift in their operational dynamics.
According to a Nikkei Asia report, Acer’s Chairman, Jason Chen, revealed that India has emerged as Acer’s second-largest market, trailing only behind the United States in terms of shipments and revenue. The company is set to boost its consumer notebook sales in the nation, with plans already underway to expand local production through collaborations with Indian and Taiwanese suppliers. Chen highlighted the successful partnership with an Indian supplier started in 2023, emphasizing the growing demand for more models and increased volume due to the rapidly expanding Indian market.
Similarly, Asustek’s Co-CEO, Samson Hu, disclosed the company’s aggressive efforts to align with the Indian government’s push for local manufacturing. Asustek is considering moving beyond just final assembly in India to include more component-level production, marking a significant enhancement of its manufacturing strategy in the country. The focus on expanding its consumer notebook brand and prioritizing commercial notebook business in India underscores Asustek’s commitment to growing its footprint in this burgeoning market.
Contract notebook manufacturer Wistron is also making strides in India, with plans to establish a maintenance and after-sales service center in Karnataka, showcasing the broader industry trend towards enhancing local capabilities.
The Indian government’s recent policy adjustments, including the introduction of an import management system and the contemplation of future licensing requirements, demonstrate its intent to strengthen the “Make In India” initiative. This is part of a broader strategy to diversify the global tech manufacturing landscape, which has seen a shift away from China due to ongoing trade tensions with the US.
The Production-Linked Incentive (PLI) schemes, including the latest PLI 2.0 for IT products, reflect India’s efforts to attract more tech manufacturing to the country. These programs have garnered significant interest from global tech giants, including HP, Dell, Lenovo, Acer, and Asustek, and are expected to have a positive impact on local manufacturing and component production.
