Market Watch

India EMS Market Set to Soar

PARIS – India’s domestic electronics manufacturing services revenues are on track to more than double over the next three years, reaching $55 billion by 2027. 

That’s according to a report by BNP Paribas, which forecasts investments led by companies such as Apple and Samsung will add significant heft to the nation’s EMS industry.

Apple, the bank’s report says, will increase investment to $40 billion over the next four to five years to boost domestic production capacity of laptops as well as smartphones. Lenovo intends to build servers in support of its growing data center business, while Acer, HP and Nokia are also expected to expand domestic operations.

BNP forecasts the total addressable domestic EMS market will grow at a 27% compound annual growth rate to $100 billion by 2027 from $40 billion in 2023. Local customers’ appetite for consumer products and white goods, increased domestic component production, and government incentives to build the Indian manufacturing capacity will all contribute, BNP said.

Hot Takes

First quarter smartphone production grew 18.7% year-over-year to 296 million units shipped, but remained below pre-pandemic levels of over 300 million units. (TrendForce)

Semiconductor exports from China rose at a faster pace in the first five months of the year. (China government)

The expansion of semiconductor fab capacity in 2024 is expected to be 4% as manufacturers let capacity utilization rates recover from the low levels experienced in 2023. (Knometa Research)

Global shipments of augmented reality and virtual reality (AR/VR) headsets declined 67% year-over-year in the first quarter. (IDC)

Global semiconductor sales were $46.4 billion in April, up 15.8% from 2023. (SIA)

DRAM sales rose 5.1% sequentially in the first quarter to $18.4 billion, driven by rising contract prices for mainstream products. (TrendForce)

Global semiconductor equipment billings contracted 2% year-over-year to $26.4 billion in the first quarter. (SEMI)

China’s electronics manufacturing sector grew by 13.6% year-on-year, outpacing both the general industrial sector and the high-tech manufacturing industry. (IBS Electronics)

Worldwide smartphone shipments are forecast to grow 4% year-over-year in 2024 to 1.21 billion units. (IDC)

India’s electronics manufacturing industry is urging the government for a ₹30,000-₹35,000 crore ($3.6 billion to $4.2 billion) production-linked incentive scheme for components and sub-assemblies.

Orders of manufacturing technology reached $318 million in April, down 26% from March and down 5.4% from April 2023. (Association for Manufacturing Technology)Article ending bug