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India Revisits Creating a Local LCD Industry
Taking a page out of China’s industrial policy, the government of India is planning on investing $20B to promote the establishment of production and LCD panel related supply chains in the country. Local news agencies have revealed that the local government wants to establish an LCD infrastructure in India to take a piece of the $5.4B market in the country. This figure is forecasted to grow and to reach $18.9B per data compiled by the India Cellular and Electronics Association (ICEA). The Ministry of Electronics and Information Technology will lay out investment incentive plans in six months to facilitate the building of local panel production supply chains, based on the MOUs it received from potential local and overseas investors.
Through this investment, India would be capable of supporting about the capex for three to four Gen 8.5 LCD panel fabs. This figure was said to be announced by the ministry’s secretary Ajay Prakash Sawhney in an online conference. Furthermore, the reports added that the nation is also preparing to establish 6G lines to roll out panels for mobile device applications.
The strategy comes at a time, when the Korean’s are exiting the LCD market because of the excess capacity created in China and the Taiwanese are hanging on due to the short term shortage created by the exit of the Koreans., which has driven panel ASPs up. This condition is expected to fade as more Chinese capacity comes on-line and the growth of IT applications, driven by unprecedented growth due to the WFH phenomena dissipates. Should India go ahead with their plan, the fabs will enter mass production just as the LCD industry reaches another period of glut and falling prices. India could protect their fledging LCD industry by using ODM/EMS companies to assemble devices (Foxconn already operates in India) and then using tariffs to discourage importing panels, but this strategy has unintended consequences for India’s global companies desiring to sell into China. The concept of India establishing a display industry seems to resurface every 5 years and then drowns in its own inertia. Our old friend Raj Rajeswaren, who spearheaded Kodak’s OLED AMOLED business has been trying for years to get India’s government to fund a local OLED fab with nothing to show for it.
Taking a page out of China’s industrial policy, the government of India is planning on investing $20B to promote the establishment of production and LCD panel related supply chains in the country. Local news agencies have revealed that the local government wants to establish an LCD infrastructure in India to take a piece of the $5.4B market in the country. This figure is forecasted to grow and to reach $18.9B per data compiled by the India Cellular and Electronics Association (ICEA). The Ministry of Electronics and Information Technology will lay out investment incentive plans in six months to facilitate the building of local panel production supply chains, based on the MOUs it received from potential local and overseas investors.
Through this investment, India would be capable of supporting about the capex for three to four Gen 8.5 LCD panel fabs. This figure was said to be announced by the ministry’s secretary Ajay Prakash Sawhney in an online conference. Furthermore, the reports added that the nation is also preparing to establish 6G lines to roll out panels for mobile device applications.
The strategy comes at a time, when the Korean’s are exiting the LCD market because of the excess capacity created in China and the Taiwanese are hanging on due to the short term shortage created by the exit of the Koreans., which has driven panel ASPs up. This condition is expected to fade as more Chinese capacity comes on-line and the growth of IT applications, driven by unprecedented growth due to the WFH phenomena dissipates. Should India go ahead with their plan, the fabs will enter mass production just as the LCD industry reaches another period of glut and falling prices. India could protect their fledging LCD industry by using ODM/EMS companies to assemble devices (Foxconn already operates in India) and then using tariffs to discourage importing panels, but this strategy has unintended consequences for India’s global companies desiring to sell into China. The concept of India establishing a display industry seems to resurface every 5 years and then drowns in its own inertia. Our old friend Raj Rajeswaren, who spearheaded Kodak’s OLED AMOLED business has been trying for years to get India’s government to fund a local OLED fab with nothing to show for it.
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