Electronics Manufacturing: Global Leaders, Indian Growth & TSMC Challenges

Ever wonder where the phone in your pocket, the laptop on your desk, or the smartwatch on your wrist actually comes from? The answer shapes prices, availability, and even the jobs in your hometown. In this section we break down who dominates the market, how India is stepping up, and why the world’s top chip maker, TSMC, isn’t building a fab in India yet. Quick, practical facts – no fluff.

Who Leads the World in Electronics Production?

China still holds the crown for total electronics output. Over 60% of the world’s smartphones, tablets and consumer gadgets roll off factories there. The country’s massive supply chain, low labor costs and aggressive tax incentives keep it ahead. But the gap is narrowing. Vietnam and Mexico are pulling in more contracts because brands want to spread risk and avoid tariffs. Those factories focus on mid‑range devices, but the volume is growing fast.

India’s Role and the TSMC Puzzle

India is no longer just a market for imported phones – it’s becoming a production hub. The government’s "Make in India" plan has attracted investments in assembly plants for smartphones and tablets. Local talent, a huge English‑speaking workforce and lower wages make the country attractive for companies looking to diversify.

Yet, the biggest chip maker, TSMC, stays out. The reasons are practical: power shortages, limited high‑purity water, and a shortage of ultra‑clean fabs. Even with generous subsidies, the risk of delays or quality issues scares investors. Until infrastructure catches up, TSMC prefers established sites in Taiwan, the U.S. and Europe.

These dynamics matter for anyone following tech trends or considering a career in the sector. The shift away from a single‑source model means more jobs abroad, new supplier relationships, and a chance for emerging economies to claim a slice of the pie.

Want deeper dives? Check out our article "Electronics Manufacturing: Which Country Tops the List?" for stats on global leaders, and "TSMC and India: Why the Chip Giant Isn't Setting Up Shop Here" for a detailed look at the challenges. Both pieces give the numbers, the back‑story, and tips on what to watch next.

Bennett Gladesdale

Jun 14 2025

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TSMC and India: Why the Chip Giant Isn't Setting Up Shop Here

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