India's electronics manufacturing sector grapples with uncertainty over Trump's tariff threat

INDIA’S CHANCE
However, Lori Chang, a senior analyst at Taiwan-based tech-research firm Isaiah Research, felt differently. She said Trump’s policies will impact production and assembly plants, mainly in China and Mexico, but will also accelerate plans to establish key component manufacturing facilities in countries such as India, Vietnam and Thailand.

“Beyond the relocation of assembly plants from China, major component assembly — including camera modules and battery cells — has seen increasing investment in India in recent years to achieve a supply chain clustering effect,” she said. “Electronics Manufacturing Services (EMS) and Original Design Manufacturing (ODMs) that have established factories in India will see Original Equipment Manufacturer (OEMs) actively requesting an expansion of their production lines in the country,” Chang said.

Apple, for instance, plans to increase the share of its manufacturing in India this year, including products like iPhones and AirPods, she said. Additionally, India’s iPad production line is expected to be operational next year, further increasing the country’s role in Apple’s manufacturing.

“However, setting up facilities, workforce allocation and training remain critical challenges for production in India,” she said. “The mobile phone manufacturing industry in India may also face challenges such as inconsistent infrastructure and complicated labour laws. Additionally, India’s production to manufacture high-end smartphones is still developing and enhancing production competitiveness could be one of the most important challenges at the moment.”