Chennai, Bengaluru, Gurugram amongst least expensive FDI websites for electronics R&D


When it got here to world’s best location for electronics R&D actions, Chennai was ranked second. South Korean capital Seoul topped the record.

The research, which benchmarked the world’s prime 100 FDI locations within the digital parts business, assessed every location’s price and high quality competitiveness for R&D actions. Pic: iStock

Chennai is the most cost effective FDI (international direct funding) location on this planet to arrange an electronics R&D centre. Together with Chennai, there are three extra Indian cities within the prime 10, in line with fDi Benchmark, an funding location comparability instrument from Monetary Occasions.

The rankings have been revealed within the February-March print version of fDi Intelligence.

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The research, which benchmarked the world’s prime 100 FDI locations within the digital parts business, assessed every location’s price and high quality competitiveness for R&D actions. In essence, it signifies the very best places for a modelled 50-person electronics R&D centre occupying 2000 sq. metres of workplace house, the report mentioned.

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Chennai was the low-cost place within the prime 100 electronics FDI locations, with estimated annual working prices of $1.24 million for a 50-person R&D centre, adopted by Penang in Malaysia ($1.32 million), Gurugram ($1.53 million) and Pune ($1.53 million). Bengaluru ($1.69 million) at seventh was the opposite Indian metropolis within the prime 10.

Courtesy: fDi Intelligence.

“The prominence of main Asian clusters within the electronics business has made them engaging for analysis and growth (R&D) operations. All however one of many 20 best places to arrange an electronics R&D centre are situated in Asia,” in line with fDi Benchmark.

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When it got here to the world’s best location for electronics R&D actions, Chennai was ranked second. The South Korean capital of Seoul topped the record. Bengaluru, Pune and Gurugram occupied the sixth, seventh and eighth spots, respectively. Istanbul (fifth) in Turkey was the one European metropolis within the prime 10.

Courtesy: fDi Intelligence.

Tamil Nadu contributes almost 20% of India’s electronics manufacturing. In 2020, the state authorities launched the Tamil Nadu Electronics {Hardware} Manufacturing Coverage 2020. It goals to extend the state’s electronics business output to $100 billion by 2025.

Decrease finish of worth chain

Regardless of being cheaper than different places, India stays on the decrease finish of electronics worth chains, in line with the report.

“India has at all times been identified for low-tech merchandise … however has future potential. There isn’t a comparability between what’s (at the moment) being designed and labored on in India versus locations like China, Japan and Korea,” Mark Burr-Lonnon, senior vp for international service at Mouser Electronics, a US-based international electronics distributor that provides components to design engineers, was quoted as saying within the report.



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