India bets billions on breaking China’s grip on smartphone manufacturing
India has launched a multi-billion dollar incentive program to boost domestic smartphone and semiconductor manufacturing. The initiative aims to reduce reliance on Chinese supply chains by attracting global electronics giants like Apple and Samsung.
Why it matters
This represents a significant shift in global supply chain dynamics as India attempts to challenge China's dominance in electronics manufacturing.
India unveiled billions of dollars in new incentives for smartphone manufacturing and an expanded semiconductor push on Wednesday, seeking to build on its success assembling Apple’s iPhones and draw more of the global electronics supply chain away from China.
Called the Mobile Phone Manufacturing Scheme, the ₹625 billion (about $6.5 billion) program will run for five years and reward smartphone manufacturers based on eligible sales, with incentives ranging from 2.25% to 5% and an additional 1.5% for sourcing key components and sub-assemblies in India. New Delhi also committed a further ₹1.28 trillion (around $13.3 billion) to bolster domestic semiconductor manufacturing, expanding a $10 billion chip incentive program launched in 2021 with greater support for chip equipment, materials, design and research.
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