Rising tensions in West Asia test India’s electronics resilience, as industry leaders warn of looming risks to supply chains, logistics costs and semiconductor demand worldwide.
India’s electronics and semiconductor supply chain has so far avoided disruption from the conflict in West Asia, though industry leaders warn that prolonged instability could pose risks. According to an exclusive report by the Hindu Businessline, exports, largely dependent on air freight, have halted to the region but continue via alternative routes at higher costs.
Imports of components, on the other hand, are mainly transported by sea and remain steady with visibility for three to four weeks.
Sasikumar Gendham, President of the Electronics Industries Association of India (ELCINA), told Businessline that logistics in West Asia are currently at a standstill, but the impact has not yet reached production floors.
If the situation continues for two more weeks, then there might be challenges, he noted, adding that fuel-related issues in China could further affect shipping lines and Indian operations.
An official at the Indian Electronics and Semiconductor Association (IESA) echoed concerns, stating that extended conflict may pressure sector operations. With exports reliant on air and imports on sea, the industry is closely tracking developments.
Analysts highlight the global nature of the supply chain. Tarun Pathak, Research Director at Counterpoint Research, explained that gases from oil refining are critical for semiconductor manufacturing. He added that downstream products such as smartphones, PCs and consumer electronics face shrinking availability as data centre demand absorbs more memory supply.
The report noted that some industry voices regarded the turmoil as a reminder of India’s need for greater self-reliance. Shashwath TR, Co-founder and CEO of Mindgrove Technologies, observed that such situations highlighted the importance of strengthening domestic capabilities in chip design and manufacturing.
He further argued that although reliance on global supply chains would remain, developing domestic capacity would help India prepare more effectively for future supply chain shocks.
