Why read this report?

研报英文原文证据摘录

Why read this report?

Disruptive Technology ● Equities

July 2026

How the global backdrop is

helping India’s chip sector

◆ Supply chains are shifting away from China amid worries over

single-source fragility; new investments routed to ‘safer’ locations

◆ US export controls to China are accelerating splits in the

semiconductor ecosystems with India emerging as a beneficiary

◆ IDC projects global semiconductor revenue to cross USD1trn in

2026 (+53% yoy); memory market to reach USD600bn (+163% yoy)

The "China + 1" and "Friend-Shoring" strategy

Electronics and semiconductor supply chains are undergoing a structural realignment that looks

set to benefit India. Until recently, manufacturers optimized their supply networks mostly for cost

and proximity, leading to a concentration of assembly, packaging, and raw material processing in

China. However, a number of supply chain shocks in recent years have exposed the fragility of a

single source of supply, with manufacturers adopting a "China + 1" and “Friend-Shoring” strategy.

India as the primary beneficiary

India has emerged as the preferred destination for this macro-reallocation as it offers a rare

combination of structural advantages that position it to capture the lion's share of shifted capital:

◆ Massive domestic market: India is a big exporter but also home to one of the world's

fastest-growing domestic consumer end-markets for electronics, automotive systems, and

telecommunications.

◆ The scale of electronic manufacturing: Under the Production Linked Incentive (PLI)

schemes, India's domestic electronics production value is projected to reach USD300bn1 by

2026, and the target is production will reach USD500bn by 20302. Smartphone

manufacturing shows what can be done as India has scaled to become the world's second-