🧠 Food for thought

Implications, context, and why it matters.

Component suppliers are following major customers’ manufacturing migrations to India

• Samsung Electro-Mechanics’ India expansion reflects a broader pattern where component suppliers trail their major customers’ manufacturing shifts, creating integrated supply ecosystems.
• Samsung Electronics operates one of the world’s largest smartphone manufacturing bases in Noida and recently expanded into laptops, while Apple and Foxconn are also increasing their Indian production footprint2.
• This supply chain migration is driven by proximity needs. MLCCs and camera modules require close coordination between component suppliers and device manufacturers for quality control and just-in-time delivery.
• SEM’s current India presence includes only a software unit, but the company is now actively seeking local partners and customers as demand grows from expanding smartphone and electronics production1.

India leverages trade tensions to accelerate electronics manufacturing growth

• While U.S. tariffs on Indian electronics reached 50% in 2025, affecting $14.6 billion in exports, India’s electronics sector has shown remarkable resilience with 200% growth since 201934.
• India’s consumer electronics market is projected to grow from $89.1 billion in 2024 to $162.7 billion by 2034, driven by both domestic demand and manufacturing incentives1.
• Companies like Apple aim to produce 70-80 million iPhones in India by 2026, while Samsung is investing ₹1,000 crore to enhance smartphone manufacturing in Tamil Nadu2.
• India’s Production Linked Incentives (PLI) scheme and strategic positioning as a “China Plus One” alternative have attracted major investments, with the electronics sector projected to achieve $500 billion in production by 203025.