IMPULSE Task 1

1. List the major public & private companies operating in this sector?
Public companies - Apple, Qualcomm, Intel
Private companies - Skyrora, Shadow Robot Company

2. What is the Market Capitalization of each of these firms?

Apple - $ 2.08 trillion
Qualcomm - $ 157.41 billion
Intel - $ 220.63 billion

3. List and explain the Major trade terms and metrics used in that sector?
OEMs: original Equipment Manufacturer – This term is used to describe a company which designs and
produces electronic items based on buyer’s specifications.
ODMs: Original Design Manufacturer - ODMs design and manufacture products which companies are
looking for, either to be used in their products or to be sold under their brand name. The ODM is in charge
of research and development and has the ability to sell the product on their own, to other buyers.
EMS: Electronic Manufacturing Service – These are companies which create an electronic component, from
the beginning (design), through manufacturing, testing, and distribution of the final approved product.

4. Identify the Shift in trade trends due to covid?

Because of Covid, there is an effect on the semiconductor demand in 2021. Semiconductor is needed for
almost all the electronic items and because of corona virus pandemic and uncertain challenges posed by it,
the revenue and trade of semiconductors has decreased.

5. What are the main trade commodities in that sector?

Trade commodities in the electronic components are majorly metals used by the electronics industry. These
metals include copper, lithium, tin, nickel and aluminium. Copper is required in high demand as it’s required
in circuit boards.

6. Latest news or developments in that sector (minimum 5)?

• Impact of semiconductor chip shortage on global economy - An acute shortage of semiconductors chips —
used for manufacturing several goods including electronic products, vehicles, smartphones and other gadgets
— has led to losses despite rising demand for such goods. The global chip supply crunch, which started after
the pandemic in 2020, has intensified over the last few months and major companies across several in are
struggling to meet the rising demand for electronic goods and components.
• Significantly growing investments in wearables segment: Qualcomm - Mobile chipset company Qualcomm
is significantly growing its investments in silicon, platforms, and technologies and plans to roll out new
Snapdragon Wear platforms for wearables over the next year.
• IT hardware makers seek higher sops under PLI scheme to be globally competitive - Laptop and tablet
manufacturers have written to the electronics ministry to increase sops under the production-linked incentive
(PLI) scheme for IT hardware to be able to compete against the likes of Vietnam. India Cellular and
Electronics Association of India (ICEA), which represents the likes of HP, Dell, Lenovo, Acer and contract
manufacturers Foxconn, Flextronics, Wistron etc, has written to the government last week that we must aim
for at least 25% of the cost.
• Xiaomi focussed on premium products, stronger retail network and local manufacturing in India -
Smartphone major Xiaomi is focussed on expanding its line-up of premium devices and internet of things
(IoT) products, strengthening offline retail network, and bolstering local manufacturing as part of efforts to
continue its leadership position in the Indian market.
• Acquisition of UK’s largest chip plant demonstrates UKs insignificance in the semiconductor fabrication
industry. Recently, it was announced that Nexperia is in the process of acquiring the UK’s largest
semiconductor fabrication plant Newport Wafer Fab.
7. What are the Major trade associations in that sector?
Major trade associations in this sector are –
• All India Auto Miniature Bulbs and Components Manufacturers Association
• Cable And Conductor Manufacturers Association
• Consumer Electronics and Appliances Manufacturers Association
• Electrical Dealers and Contractors Association
• Electronic Components Industries Association
• India Cellular and Electronics Association of India (ICEA)

8. Find 2 other interesting facts (Cover any 2 additional important topics) in these sectors and write a note on
them?
Electronics comprised 40% of car component costs in 2015
This was when Electric Vehicles were not as prominent as they are today but still the electronics put into the
car system made up 40% of the cost. This points to the fact that how central electronics components are to
the production of a car. The number will certainly go up as governments are pushing for adoption of electric
vehicles and thus electronics components industry is expected to see a rise in demand.
The Electronic Manufacturing Services sector in India is going to grow over 6-fold to $152bn by 2025 -
Globally, the electronic manufacturing services (EMS) sector was valued at USD 832 billion in 2019 and is
estimated to grow to USD 1,055 billion by 2025. This will require that we manufacture printed circuit board
assemblies within the country and reduce our dependence on imports. It will also be required for the
Government to support the sector to increase its reach into the export markets which are largely dominated
by China and Vietnam.