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Economic drivers, challenges creating regional electronics industry

By Mark Zetter

While working on a project in India, previously, I contributed to a series of long and interesting discussions with one of the secretaries to the government of India’s Ministry of Commerce and Industry.

Among many of the topics we discussed, I shared some insight about possible steps India might consider to develop and promote a globally, competitive Indian EMS industry.

Most recently, I contributed to a fact-based electronics industry feasibility analysis orchestrated by IDC on various concerns a country might likely face today, and need to address, should a nation without a thriving electronics industry want to create one.

While much of the knowledge and information remains private, I can share some excerpts from the final report with VentureOutsource.com readers.

(Readers seeking information about the ongoing challenges India faces concerning the sub-continent’s various failed efforts to create a truly global base as a reliable electronics manufacturing ecosystem, take a look at these articles here.)

So, as governments and company executives wanting to create a successful regional electronics industry ask themselves: “What do we need to know?” let’s begin by looking at a typical supply chain world map as it might pertain to a desktop PC. (See Figure 1)

Figure 1

Personal Computing (PC) Supply Chain

(Click to enlarge Figure 1)

The electronics industry has a global value chain encompassing product design; semiconductor fabrication and packaging, components and subsystems, and final product assembly. (See Figure 2)

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