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Shifting Supply Chains from China to India

PCB and electronic PCBAs

Following the double whammy of the US-China trade war and the COVID-19 pandemic, an increasing number of global manufacturing companies are looking to shift parts of their supply chains, including PCB and electronic PCBAs, from China to India, according to multiple recent reports.

Many companies have suffered significant disruptions to their supply chains as authorities across the globe have enforced lockdown measures aimed at containing the pandemic that originated in Wuhan, China. As a result, these companies are looking to diversify their supply chains and limit the risk of single-region exposure.

In a move aimed at spurring the interest of global manufacturing firms, India’s Union Cabinet approved production-linked incentives for electronics manufacturing companies on March 21st, 2020. The program offers a production-linked incentive to boost domestic manufacturing of specified electronic components such as Printed Circuit Boards (PCB), PCB Assemblies (PCBA), Cables, and System Assemblies, and offers monetary stimulus of 25% of capital expenditure for the manufacturing of goods that form the supply chain of electronic goods.

Some of the companies that have been reported to be exploring a move into India are large electronics and automobile manufacturers from the U.S., Japan, and South Korea, but smaller companies and firms from other industries and regions are expected to follow suit. In May it was reported that Apple is looking to shift nearly 20% of its production from China to India. The move would ramp up their local contract manufacturers and seek to achieve $40 billion worth of production by 2025.

In a few years’ time, India may very well be the global hub for electronics manufacturing of PCBs, PCBAs, Cables and System Assemblies.

Optima Technology is a global provider of PCBs, Printed Circuit Board Assemblies, Cables and System Assemblies located in Lewisberry, PA and New Delhi, India. Since 1995, Optima has specialized in providing local support coupled with cost-effective pricing via offshore manufacturing through our ISO approved facilities. Please reach out to if you’re interested in learning about their state-of-the-art manufacturing facilities in India.