back to article India to revisit hardware incentives after struggling to move manufacturers out of China

India will tweak the incentive scheme it offers to manufacturers of enterprise hardware after disappointing uptake. "The IT hardware is not a high growth market, it is a very set market," IT minister Rajeev Chandrasekhar told India's Business Standard "There are only four to five players and almost all of their manufacturing …

  1. elsergiovolador Silver badge

    Just laptops

    IT market is not just laptops or phones.

    India is missing an opportunity to create fabs for older processes like 90nm. There is still a shortage of microcontrollers and there is no sight of this ending any time soon.

    1. Anonymous Coward
      Anonymous Coward

      Re: Just laptops

      Can you explain your choice of 90nm? At 90 a number of additional issues are introduced that required additional complex process steps to be added. For example, OPC on masks.

      With this in mind, a first step process for a nascent industry would make more sense to use 250 or 180nm.

      Or if the additional issues are well understood, 65nm or 40nm might be a better starting point. Why do you think 90 is the place to start?

  2. Anonymous Coward
    Anonymous Coward

    From IndiaTimes, 2006 (16 years ago) - "while India has shown fantastic growth in software capabilities, it has performed poorly in hardware manufacturing. While India was 80% self-reliant 20 years ago in the production of machine tools, it now imports 80% of its machine tools. In fact, manufacturing industry contributes only 17% of the GDP."

    A 2019 Global Competitiveness Report by the World Bank ranks India at 108th place out of 141 countries on the reliability of electricity supply.

    1. elsergiovolador Silver badge

      Hardware is not like software where you can do a bodge job and then someone in the West will fix it.

  3. Lordrobot

    Avoid the Gold Rush and sell the 49er's shovels

    "The US and Europe, meanwhile, have substantially outbid India with massive subsidies that aim to grow existing industries and ensure they have reliable and secure supply chains." [The well-worn pathway to losership!]

    So the US and Europe are "Growing existing industries" with their subsidies. Doesn't that more or less explain how this will fail? What about small startups with great ideas? The subsidized goliaths will crush you with your own gov's dollars. The examples of this are legion. Look at NASA and the Space Shuttle... That was a GOV-picked winner... by Bill "Smiling Skull" Nelson... now the Deliverance kid is all Growed up and IN CHARGE OF NASA!

    Think about it.. Only when NASA went broke did the private sector start landing rockets in reverse, quadrupling the number of satellites launched.

    When the Gov embarked on the Human Genome Project, they fell flat on their faces, turning it into a 50-year-long project, until some small firms stepped in with math and took over the failed project. Same deal as always... Gov supports the "Existing Industries" that FAIL but help Politicians with their insider trading. Then some small startup has to fix the mess.

    India should instead focus on Ransomware... and keeping the world of hardware off-balance.

  4. First Light Silver badge

    Don't put all your Apples in one basket

    "was rumored to be relying on the nation for early supplies of this year's new model iPhones"

    I spend alot of time in India. I was approached by a local to buy an iPhone in the US on his behalf as the locally-produced ones were known to be of a lesser quality. It will be interesting to see how this works out for Apple.

  5. DS999 Silver badge

    They aren't moving to India because it is a bad idea

    They only need to look at India working to enforce various new laws against tech companies to know that while they want to move some of their eggs out of China's basket for a variety of reasons, they don't want to put many of them in India who would gain more leverage against them.

    China's success in getting so much tech manufacturing in their country in the last couple decades was because they took a very hands off approach for many years. It is only relatively recently they've started to flex their muscles more - see the other article over the labeling of components imported from Taiwan for the latest example. India is doing it backasswards, flexing their muscles first and then trying to get tech manufacturing to move to India. They will get some to move there, because of their high tariffs for imported tech like smartphones and PCs, but are unlikely to get a significant portion beyond internal needs.

    I think the reason so much manufacturing remains in China despite the growing issues there that also include increasing cost and the US trade war, is because that rather than an expensive migration from China to some other country with lower cost labor, they are hoping to wait out the day when a lot of their manufacturing will be able to be automated and low labor cost will matter less. They won't get enough automation in the near term to reshore to the US and its high wages, but political and regulatory stability will be high on their list. Eastern Europe may have been top of that list until Putin decided to make 1939 great again.

    1. Anonymous Coward
      Anonymous Coward

      Modi isn't exactly inspiring trust in Western societies to move there.

      They're in China and although it's looking more and more a mistake, they are still making money for a while.

      But why now invest to move to India as long as Modi is looking at Putin and Xi and wishing to become alike?

      It is true that companies when they see a lot of money they don't see anything else - but India doesn't look to have the manufacturing capabilities, nor the resources, China has, nor it looks able to build it, and anyway moving manufacturing into another country lead by another wannabe authoritarian leader looks very silly to me.

      The ongoing events show how dangerous is to put most of your eggs in a basket you can't trust.

      1. DS999 Silver badge

        Re: Modi isn't exactly inspiring trust in Western societies to move there.

        The ongoing events show how dangerous is to put most of your eggs in a basket you can't trust

        Yes, between China flexing its muscles trying to control companies making stuff there, Putin destabilizing eastern Europe, and the supply chain lessons from covid I think everyone is going to want to shift to a more widely dispersed manufacturing base. It may be less efficient, but carries less risk.

        Of course companies didn't shift their manufacturing to China overnight, that took a very long time. It will take an equally long time to go in the other direction.

    2. ChoHag Silver badge

      Re: They aren't moving to India because it is a bad idea

      Slightly aside: the Great Patriotic War started in 1941. I guess for two years "we are killing the slavs and taking their land (again)" was seen as some sort of jape.

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