Dixon Technologies and the China Plus One Strategy: Analyzing the Impact on Electronics Manufacturing

Sunday, 22 September 2024, 18:43

Dixon Technologies is at the forefront of the China Plus One strategy as electronics manufacturers anticipate changes from the next US administration. Stricter tariffs on China could reshape global production networks, with industry leaders eyeing India, Vietnam, and Mexico. The shift promises an expansive growth opportunity for India's manufacturing landscape, particularly if Donald Trump returns to power.
Indiatimes
Dixon Technologies and the China Plus One Strategy: Analyzing the Impact on Electronics Manufacturing

Dixon Technologies' Role in the China Plus One Strategy

India’s electronics manufacturers are keenly watching the outcome of the US presidential election, hopeful that the next administration imposes stricter tariffs on China amid an ongoing trade war between the two countries.

Some are privately hoping for a return of Donald Trump in the White House, attracted by his promise to exempt goods like laptops and smartphones from the current 25% anti-dumping tariffs on imports from China. This, in hopes that a substantial production shift would ensue as Chinese exports become more expensive for electronics brands.

  • Experts believe that if the US toughens its stance on China, India could emerge as a prime manufacturing hub alongside Mexico and Vietnam.
  • Current policies boost domestic manufacturing and create a strong support package for electronical components.
  • Trump's vow includes increasing tariffs to as high as 60% on goods imported from China, while his opponent Kamala Harris is expected to maintain the present tariff regime.

Growing Alliances: Indian Manufacturers and Chinese ODMs

Chinese manufacturing giants are increasingly setting up operations in India. For instance, Longcheer has partnered with Dixon Technologies to enhance local production capabilities.

  1. The partnership is crucial, given Longcheer’s 28% global ODM production share.
  2. Bhagwati Products is nearing a collaboration deal with Huaqin for technological support in India.
  3. Apple focuses heavily on developing the supply chain for iPhone production in India.

JP Morgan projects iPhone EMS output in India could rise to 20-25% by 2027.

Though production transitions are occurring despite lower assembly margins in India, the shift towards enhanced capabilities is steadily progressing.

Industry leaders are urging increased US collaboration on key products without tariffs, such as laptops and smartphones, to fuel this growth trajectory.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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