Electronic Hardware Sector

Transcription

1 Electronic Hardware Sector

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

3 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% 50% 40% World electronic industry production by region 42% 52.% 30% 20% 10% 0% 22% 18% 18.7% 52% 15% 14.9% 6.2% 8.3% 19% 15% 3% 6% 8% Japan North America Europe Asia pacific Rest of the World The production of electronic products has shown a change in trend from the developed economies to the countries in the Asia-pacific Region.

4 Communication equipment, Computers and peripherals and Consumer electronics are the top three sub-sectors contributing to the world electronic industry production. Instruments 8% Industrial Electronics 9% Strategic Electronics(Go vt/military) 9% Share of different segments in world electronics production (FY13) Automotive Electronics 7% Consumer Electronics 13% Communication equipment 27% Other Electronic components 2% Computers and Peripherals 25% India s share in the world production is only 1.5%. Hence a lower penetration of these subsectors represents India s immense potential for the growth of the industry both on the domestic as well as the international front.

5 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. Commercial electronics 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). IT hardware and office automation Electronics and durables Automobiles (Estimated) USD Million

6 The Semiconductor industry is expected to register a CAGR of 27% by 2020 Electronics Exports by sub-sector, % to total exports Growth of the Semiconductor industry in USD billion 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 46% 34% 37% 46% 36% 8% 5% 39% 30% 43% 37% 29% 7% 5% 13% 14% 3% 5% 12% 8% 12% 11% 13% 3% 3% Electronic Components Communication and Broadcast Equipments Computer Hardware Industrial Electronics Consumer Electronics

7 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) MSIPS 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 % 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.

8 Electronic Hardware: Tamil Nadu Tamil Nadu is the 3rd largest manufacturer of Electronic Hardware in India Tamil Nadu s contribution to the national electronic hardware output has increased from 10 % in to 14.6% in USD Billion Total electronic hardware industry output of Tamil Nadu Total electronic hardware industry output of India Consumer Electronic s 0.34% Communic ation equipment 14% Share of major subsectors in total electronic hardware industrial output of Tamil Nadu ( ) others 20% Electronic Component s 25% Computer and peripheral equipment 41%

9 Major Players in Tamil Nadu Tamil Nadu s 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. Invested capital in USD Million Product Mobile handsets and Communication networks, Mobile handset Components, Keypads for Mobile handsets Electronic hardware and mobile phone components Major players Industry Computers and Peripheral Equipment Electronic Hardware Electronic Consumer Durables Computers Semi-Conductor testing and packaging Electronic Components Communicati on equipment Consumer Electronics

10 USD Million Tamil Nadu stands 1 st 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 Andhra Pradesh Gujarat Delhi Kerala Maharashtra Uttar Pradesh Karnataka Tamil nadu 0.96% 1.54% 1.76% 3% 12% 14% 17% 46% 0% 10% 20% 30% 40% 50% Export of Computer Software & Elec. Goods from Tamil Nadu in USD million

11 Existing Electronic Hardware SEZs in Tamil Nadu Krishnagiri Mahindra World City Chennai Sriperumbudur Hi Tech SEZ Flextronics, Samsung, Motorola, DELL Computers, TAPP Semi Conductor, Natronics Semiconductor Kanchipuram 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 Coimbatore Madurai Salem Tirunelveli Tiruchirapalli Oragadam Hi Tech SEZ Sanmina, Moser Baer, Signet Solar, Seimens Networks, BYD China, Polymatech 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. 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.

12 Opportunities in Electronic Hardware Sector Photovoltaic panels Computer peripherals Mobile handsets Communication hardware and networks Semiconductors Medical electronics

13 Additional Chief Secretary - Government of Tamil Nadu Industries Department Phone: Fax: 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 Phone: directorguidance@gmail.com Visit us at