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Electronics Sector Skills Council of India

Electronic components industry in India

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Electronic components industry in India

One of the world’s fastest expanding businesses is the electronics manufacturing service industry. India, which is rapidly expanding its electronics manufacturing cluster, accounts for 3% of global electronics production. The country is gradually transforming into a global electronics and electrical component manufacturing hub. Experts say the government and trade associations should search for new electronic component manufacturing companies in the country since multinational OEM tycoons will have more opportunities to set up shop in India. Electronic components are regarded as the foundation of this industry. A supportive environment and a large capital investment are required for a proper and flawless structure for manufacturing electronic components. This is where electronic associations and the Indian government are collaborating to improve the system.

Electro-mechanical components (such as printed circuit boards, connectors, and so on) and passive components dominate the Indian electronic component market (like wound components, resistors, etc.). Nonetheless, active components (such as integrated circuits, diodes, and so on) as well as associated components (such as optical discs, magnets, and RF tuners) have seen their rise over time.

India now produces various discrete components, passive components, electromechanical components, coils, and transformers, according to electronic groups such as the India Electronics and Semiconductor Associations (IESA). The Indian government has embarked on a mission to establish a Semiconductor Fab in India, and has issued Expressions of Interest (EoI) and Requests for Quotation (RFQ) to global heavyweights interested in establishing a fab in India.

What are passive components?

Except for the available alternating current (AC) circuit to which it is linked, a passive component is a module that does not require energy to operate. A passive module is not a source of energy or capable of gaining power. A chassis, inductor, resistor, transformer, or capacitor are examples of passive components.

Passive components, in general, are unable to enhance the power of a signal or to amplify it. An LC circuit, which stores electrical energy from resonant frequencies, or a transformer, which functions as an electrical isolator, can, nevertheless, increase current or voltage.

A passive circuit is an electronic circuit made up entirely of passive components. An active component is a module that is not passive.

A two-port parameter, which is an electric circuit or module with two pairs of terminals linked together by an electric network, is used to define the majority of passive components with two terminals. The reciprocity standards are met by two-port parameters. A transistor, electronic filters, or impedance matching networks are examples of two-port networks. Because it is a closed system, a transducer or switch would not be a two-port parameter. Despite the fact that active components frequently have more than two terminals, they are not categorised as two-port parameters because they lack the necessary qualities.

Inductors, resistors, voltage and current sources, capacitors, and transformers are examples of passive components that utilise circuit architecture. Passive filters, on the other hand, are made up of four basic linear elements: an inductor, a capacitor, a resistor, and a transformer. Non-linear elements, such as a transmission line, can be found in some high-tech passive filters.

Why does India continue to import large quantities of passive components from China?

Despite the fact that India’s electronics manufacturing sector is growing year after year because of policies and schemes like the updated National Policy on Electronics (2019) and the Production Linked Incentive (PLI) programme, the country still imports a large amount of its components from China. As a result of this circumstance, the country lacks an adequate electronics manufacturing cluster. When it comes to India’s total demand for electronics, 70-80% of components and 50-60% of products are still imported. According to a Mint exclusive research, imports increased by 31% to $29.8 billion between April and October 2017.

Heavy import duties on numerous electronic devices, including microwaves, LED lights, and various IT hardware products, were increased from 10% to either 15% or 20% to stimulate domestic production. Many organization officials believe that this move will significantly enhance local electronic component manufacturing in India.

China leads the world in ESDM output, and India has little choice but to buy from them because of their incredibly competitive price, which is typically subsidized by the government. While other countries are also reliant on Chinese imports, India’s situation is exacerbated by our inability to expand our value-added component manufacturing industry.

India's Current Electronic Component Manufacturing Challenges

Despite the fact that India’s electronics manufacturing ecosystem is growing at a rapid pace each year, the country still lacks a proper manufacturing environment due to a number of flaws. One of the major obstacles is that India lacks a corporation or anchor that can invest in components on a large scale. The country lacks corporations like Toshiba, which have a wide component portfolio above and beyond all R&D at that level. Second, as it continues to establish EMS or contract manufacturing facilities in India, India’s investments are leveraging labour. In reality, the increase in domestic value is very significant.

“The problem is also linked to the global situation.” For example, many minerals and raw materials are abundant in nations like China, but there are also areas in Africa where we may obtain them. Also, when we have scales, component production is successful. Following the implementation of the PLI plan, India has just recently begun to consider options beyond domestic consumption. To create the business case for such investments, we need ideal volumes,” Kawoosa remarked.

India now manufactures some of the components required for the creation of electronic products, primarily passives and discrete active components. However, except for strategic requirements, India’s manufacturing capacities for higher-complexity and capability semiconductor chips are limited. According to the IESA, India now imports almost half of its component requirements. The COVID-19 epidemic has affected the production capability of whatever components India produces to some extent.

The electronics sector is experiencing an unprecedented shortage of electronic components, particularly semiconductors, chip components, and multilayer PCBs, as a result of COVID. Because of the slowdown in output, interrupted supply chains, and logistics challenges, commodity prices have risen dramatically. Because of geopolitical tensions, many large purchasers are changing their procurement to more reliable suppliers.

Raw materials such as ferrite powder, PCB laminates, and a variety of others are seeing rapid price increases, negatively hurting a huge segment of the Indian component sector, namely PCBs, Transformers, and Inductors, where we have a significant manufacturing presence.

occupations in passive components industry

Production Persuade the design team to choose and source the best Electronic Components for the job. Develop a better grasp of our technical and performance requirements among providers. Assist suppliers in troubleshooting component-related difficulties and non-conformances. Evaluate and approve new electronic component vendors. Improve processes to ensure that component selection is consistent. Assist in the development of a healthy product based on the components used. These will be the job responsibility of the passive components industry production team. 

Increasing local demand, rising disposable incomes, the Digital India project, rising manufacturing costs in other manufacturing areas, increased consumption in the Middle East, and emerging countries driving global demand are all helping India’s electronics sector grow.

Over the last two decades, has aided international corporations in establishing complete Greenfield and Brownfield manufacturing plants in India. In order to complete manufacturing projects to worldwide standards, we have in-house expertise as well as an ecosystem of external organisations. 

Looking at the steady growth of electronic components industry in India, you might be thinking about working in the passive components industry.  But aren’t sure how you will prepare for the sector? Start off your career planning with FREE ONLINE CAREER ASSISTANCE.

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