Manufacturing moves to Chennai
By Staff -- Purchasing, 1/18/2007 2:00:00 AM
Electronics buyers can expect Chennai in southeast India to become the next hot spot for electronics manufacturing.
The Indian government is offering companies incentives to open facilities in Chennai, formerly known as Madaras, and many are responding. For instance, electronics manufacturing services provider (EMS) provider Flextronics plans to build a manufacturing facility on the outskirts of Chennai. In addition, HonHai, Ericcson, Nokia, Siemens, Motorola and TAPP Semiconductor have announced investments for Chennai.
In total, Chennai has attracted more than $1 billion in investments over the last two years, according to researcher iSuppli . One of the larger projects involves Taiwanese electronics manufacturing company Foxconn. The company plans to build printed circuit boards, mobile handsets, and PC and network equipment components at a new facility in Chennai.
Nokia has been manufacturing in Chennai since last March and has attracted new partners including Salcomp and Perlos to the area, says iSuppli.
Several other EMS suppliers will set up shop in Chennai, including Laird and Jabil Circuit. By 2008, it is expected that eight EMS suppliers will open up manufacturing operations in Chennai.
The area of India is attractive because the city has a large labor pool of workers with engineering expertise. In addition, the labor rates are lower than other parts of India.
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