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    Electronic Hardware Sector

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    KB_mit
    The document discusses opportunities in the electronic hardware sector in Tamil Nadu, India. It provides the following key points: - Tamil Nadu is a major producer of electronic hardware in India, contributing around 14.6% of national output, led by computers/peripherals and electronic components. - The state has over 23 technology parks located in special economic zones focused on electronic hardware production. It also has existing clusters in major cities and plans for new clusters. - Tamil Nadu exports over $12 billion in electronic goods annually, more than any other Indian state. Major players operate in the state. - The document outlines various government supports for the sector including tax incentives, subsidies, and policies to

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    Electronic Hardware Sector

    Uploaded by

    KB_mit
    89 views13 pages
    The document discusses opportunities in the electronic hardware sector in Tamil Nadu, India. It provides the following key points: - Tamil Nadu is a major producer of electronic hardware in India, contributing around 14.6% of national output, led by computers/peripherals and electronic components. - The state has over 23 technology parks located in special economic zones focused on electronic hardware production. It also has existing clusters in major cities and plans for new clusters. - Tamil Nadu exports over $12 billion in electronic goods annually, more than any other Indian state. Major players operate in the state. - The document outlines various government supports for the sector including tax incentives, subsidies, and policies to

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    GIM 2015 electronic hardware sector

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    The document discusses opportunities in the electronic hardware sector in Tamil Nadu, India. It provides the following key points: - Tamil Nadu is a major producer of electronic hardware in India, contributing around 14.6% of national output, led by computers/peripherals and electronic components. - The state has over 23 technology parks located in special economic zones focused on electronic hardware production. It also has existing clusters in major cities and plans for new clusters. - Tamil Nadu exports over $12 billion in electronic goods annually, more than any other Indian state. Major players operate in the state. - The document outlines various government supports for the sector including tax incentives, subsidies, and policies to

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    89 views13 pages

    Electronic Hardware Sector

    Uploaded by

    KB_mit
    The document discusses opportunities in the electronic hardware sector in Tamil Nadu, India. It provides the following key points: - Tamil Nadu is a major producer of electronic hardware in India, contributing around 14.6% of national output, led by computers/peripherals and electronic components. - The state has over 23 technology parks located in special economic zones focused on electronic hardware production. It also has existing clusters in major cities and plans for new clusters. - Tamil Nadu exports over $12 billion in electronic goods annually, more than any other Indian state. Major players operate in the state. - The document outlines various government supports for the sector including tax incentives, subsidies, and policies to

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    Electronic Hardware Sector

    AGENDA
    Electronic Hardware : Global scenario
    Electronic Hardware : Indian scenario
    Electronic Hardware : Tamil Nadu scenario
    Investment opportunities
    Government Support

    Electronic Hardware: Global Scenario


    The Global Electronic Hardware industry is valued at around USD 2 trillion and is one of
    the largest and fastest growing manufacturing industries in the world.
    60%

    World electronic industry production by region

    50%

    52.%

    42%

    40%
    30%
    20%

    18%

    15%
    6.2%

    10%

    22%

    18.7%

    52%
    14.9%
    8.3%

    19%

    3%

    15%

    6%

    8%

    0%
    Japan

    North America

    Europe
    2008

    2011

    Asia pacific

    Rest of the World

    2013

    The production of electronic products has shown a change in trend from the developed
    economies to the countries in the Asia-pacific Region.

    Communication equipment, Computers and peripherals and Consumer


    electronics are the top three sub-sectors contributing to the world
    electronic industry production.
    Share of different segments in world electronics
    Other
    production (FY13)
    Instruments
    8%

    Automotive
    Electronics
    7%

    Industrial
    Electronics
    9%

    Communication
    equipment
    27%

    Consumer
    Electronics
    13%
    Strategic
    Electronics(Go
    vt/military)
    9%

    Electronic
    components
    2%

    Computers and
    Peripherals
    25%

    Indias share in the world production


    is only 1.5%. Hence a lower
    penetration of these subsectors
    represents Indias immense potential
    for the growth of the industry both
    on the domestic as well as the
    international front.

    Semiconductor Industry An Upcoming Industry In India


    Market for semiconductors across different industries
    The major semi-conductor end-user segments
    have been identified as communications, IT and
    consumer electronics.

    1647.6
    484.7

    Commercial electronics

    24,297.20

    Telecommunications

    The main categories that are expected to drive


    the semiconductor market in India are semiconductor designs , microprocessors, analogue
    devices, memory chips, discreet circuits and
    Application- Specific Integrated Circuits (ASIC).

    7980.8

    IT hardware and office


    automation

    2015(Estimated)

    6960
    2610

    2010

    1529.5
    791.1

    Electronics and durables

    459.5
    240.2

    Automobiles
    0

    10000
    20000
    USD Million

    30000

    The Semiconductor industry is expected to register a CAGR of 27% by 2020

    Growth of the Semiconductor industry in USD billion

    Electronics Exports by sub-sector, % to total exports


    100%
    90%
    80%
    70%
    60%
    50%
    40%
    30%
    20%
    10%
    0%

    60
    34%
    46%

    37%

    36%

    46%

    52.58

    50

    40
    8% 5%

    39%

    30

    30%

    43%

    37%
    29%

    20

    10.02

    7%

    5%
    13%

    14%

    12%

    8%

    12%

    3%
    11%

    2007-08

    2008-09

    2009-10

    2010-11

    3%

    Electronic Components
    Communication and Broadcast Equipments
    Computer Hardware
    Industrial Electronics
    Consumer Electronics

    5%
    13% 3%
    2011-12

    10
    0
    2013

    2020

    Government Support
    Encouragement to FDI, SEZs

    100% FDI is permitted in the electronics hardware manufacturing sector under the automatic route
    100% income tax exemption to SEZ units on export profits for five years, 50% for the next five years

    National Policy on Electronics


    (2012)

    Government approved the National Policy on Electronics (2012) with an ambitious target of reaching a market size of USD400 billion by
    2020 and creating indigenous manufacturing of USD 320 billion
    It aims to set up 200 manufacturing hubs across the country with an investment of USD100 billion to meet demand expectations
    The policy also focuses on raising exports to USD80 billion by 2020

    MSIPS

    25% of capital expenditure if the ESDM unit is in non-SEZ and 20 % of capital expenditure if the ESDM unit is within SEZ. This capex
    subsidy is available for investments made within 10 years from the date of approval of the project.
    Reimbursement of CVD/excise on capital equipment for non-SEZ units.
    Reimbursement of central taxes and duties (like custom duties, excise duties and service tax) for 10 years in select high- tech units like
    fabs, Semiconductor Logic and Memory chips, LCD fabrication.

    Electronics Manufacturing
    Clusters (EMC) Scheme

    For Greenfield EMCs: Financial assistance of 50% of the project cost subject to a ceiling of Rs. 50 crore for every 100 acres of land
    For Brownfield EMCs: Financial assistance of 75% of the project cost subject to a ceiling of Rs. 50 crore.

    Electronic Hardware
    Technology Park (EHTP)
    Schemes

    An EHTP unit may import free of duty all types of goods, including capital goods as required by it for manufacture, services, production
    and processing
    EHTP provides benefits, such as duty waivers and tax incentives, to companies which replace certain imports with local manufacturing.

    Semiconductor Policy

    Special incentives have been designed to attract investments for setting up semiconductor fabrication and other micro and
    nanotechnology manufacturing industries.
    The government has provided two options for setting up a project. For setting up Semiconductor Fabrication Units and Eco System units
    in SEZ's the government will fund 20% of the capital expenditure and for non SEZ's 25%+exemption from ( Countervailing Duty ) CVD .

    Electronic Hardware: Tamil Nadu


    Tamil Nadu is the 3rd largest manufacturer of Electronic Hardware in India
    Tamil Nadus contribution to the national electronic hardware output has increased from 10 % in 2008-09 to
    14.6% in 2012-13.
    2.60

    2012-13

    17.80

    2.97

    2011-12

    16.96

    2.46

    2010-11

    18.12

    2.25

    2009-10

    16.80

    1.35

    2008-09

    13.66
    5

    10
    15
    20
    USD Billion
    Total electronic hardware industry output of Tamil Nadu
    Total electronic hardware industry output of India

    Share of major subsectors in total electronic


    hardware industrial output of Tamil Nadu
    (2011-12)
    others

    Consumer 20%
    Electronic
    s
    0.34%
    Communic
    ation
    equipment
    14%

    Electronic
    Component
    s
    25%
    Computer
    and
    peripheral
    equipment
    41%

    Tamil Nadus Competitive Advantage


    The total investment in the electronic hardware industry in Tamil Nadu is 711 million USD
    employing more than 40,000 workers in both organized and unorganized sector.
    Major Players in Tamil Nadu
    Product
    Mobile handsets and Communication networks ,
    Mobile handset Components , Keypads for Mobile
    handsets
    Electronic hardware and mobile phone components
    Electronic Hardware
    Electronic Consumer Durables
    Computers
    Semi-Conductor testing and packaging

    Invested capital in USD Million


    Major players

    2008-09

    200910

    201011

    201112

    Computers
    and
    Peripheral
    Equipment

    77.6

    97.3

    119.5

    140

    Electronic
    Components

    153.1

    456.0

    252

    242.8

    Communicati
    on
    equipment

    182.5

    180

    162.2

    139.5

    Consumer
    Electronics

    3.36

    2.70

    2.02

    1.83

    Industry

    Tamil Nadu stands 1st in terms of Electronic exports in India


    Exports of software and electronic goods have grown at a CAGR of 18% over the last 3 years.

    Share of Top States in Electronic Hardware


    Exports of India
    0.96%

    Gujarat

    1.54%

    Delhi

    1.76%

    Kerala

    3%

    Maharashtra

    11350
    USD Million

    Andhra Pradesh

    Export of Computer Software & Elec. Goods from


    Tamil Nadu in USD million

    12%

    Uttar Pradesh

    14%

    Karnataka

    12380

    8870

    17%

    Tamil nadu

    46%
    0%

    10%

    20%

    30%

    40%

    50%

    2011-12

    2012-13

    2013-14

    Existing Electronic Hardware SEZs in Tamil Nadu


    Chennai

    Sriperumbudur Hi Tech SEZ


    Flextronics, Samsung ,
    Motorola, DELL Computers,
    TAPP Semi Conductor,
    Natronics Semiconductor

    Mahindra
    World City
    Krishnagiri

    Kanchipuram
    Salem

    Tiruchirapalli

    Oragadam Hi Tech SEZ


    Sanmina , Moser Baer,
    Signet Solar , Seimens
    Networks , BYD China ,
    Polymatech

    Coimbatore
    Madurai
    Tirunelveli

    Existing Electronic
    clusters
    Upcoming Electronic
    Hardware clusters
    Existing electronic
    hardware SEZs

    Tamil Nadu has over 23 Electronic Hardware Technological Parks


    located in major IT centric Special Economic Zones(SEZs) of
    Sriperumbudur,
    Oragadam,
    and
    Mahindra
    World
    City.

    Hi-Tech SEZ for the manufacture of Electronic/


    Telecom Hardware and Support services (571 Acres)
    Hi-Tech SEZ for Electronic Hardware and related
    support services (348 Acres)
    Mahindra World City

    Upcoming Electronic Manufacturing Clusters in


    Tamil Nadu
    Coimbatore District, Tamil Nadu Electronic Industries
    Association of India (ELCINA) plans to set up an EMC
    in the District of Coimbatore in India under the name
    Coimbatore City Electronics Cluster (ADD Industrial
    Park) under the EMC scheme.
    GMR Special Investment Region (GSKIR) is a
    strategically planned project over 4300 acres near
    Hosur, Krishnagiri. The EMC cluster of 527 acres and
    has a multi-modal connectivity covering national
    highways, State highways and railways.

    Opportunities in Electronic Hardware Sector

    Photovoltaic panels

    Computer peripherals

    Mobile handsets

    Communication hardware
    and networks

    Semiconductors

    Medical electronics

    Additional Chief Secretary - Government of Tamil Nadu


    Industries Department
    Phone: 91-44-25671383 Fax: 91-44-25670822
    Email: indsec@tn.gov.in, jsindgim@tn.gov.in
    Nodal agency
    Tamil Nadu Industrial Guidance and Export Promotion Bureau
    19-A, Rukmini Lakshmipathy Road,
    Egmore, Chennai-600 008
    Phone: 91-44-2855 3118
    Email: directorguidance@gmail.com

    Visit us at www.tamilnadugim.com

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