“Adoption Of IoT-Enabled SMT Machines Is Still In Early Phases” – Pradeep Tandon, Director For India, Middle East, And SAARC At Hanwha

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While electronics are becoming smarter through the Internet of Things, is electronics manufacturing following suit? Pradeep Tandon, Director for India, Middle East, and SAARC at Hanwha, explores this with EFY.


Q: Please highlight the pre-covid and post covid times for Hanwha SMT in India.

A: We always had a strong presence and customer base in the country. Before the COVID-19 pandemic, Hanwha SMT was growing steadily in India, with a substantial market share. However, like everyone else, we were impacted by the pandemic, which disrupted the supply chain and demand for SMT equipment, leading to a slowdown in the industry.

Hanwha SMT responded to the crisis by adapting to changing market conditions and customer needs by offering remote support, flexible payment terms, and customised solutions. As the pandemic improved, Hanwha SMT resumed its growth trajectory and expanded its product portfolio and support network in India.

Q: What trends do you see taking place in the electronics manufacturing space in India? Why?

A: We foresee India becoming an electronics manufacturing powerhouse over the next decade, driven by increasing local demand and improving competitiveness for exports. Domestic demand is growing, Government policies are supporting manufacturing, policy incentives, and global supply chain diversification. India’s electronics consumption is expected to grow from $125 billion in 2019 to $400 billion by 2025, driven by factors such as rising disposable income, digitalisation, and smart device penetration.

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Government initiatives are supporting domestic electronics manufacturing, like the Production-Linked Incentive (PLI) scheme, the Modified Special Incentive Package Scheme (MSIPS), the Electronics Manufacturing Clusters (EMC) scheme, and the National Policy on Electronics (NPE). Moreover, the global disruption caused by the COVID-19 pandemic and the geopolitical tensions between some countries has prompted many multinational companies to diversify their supply chains and relocate their manufacturing bases to India. This is because India offers competitive advantages in terms of low labour costs, skilled workforce, large domestic market, strategic location, and more.

Q: Will these trends continue, or do you anticipate changes in the long run?

A: These trends will likely continue and accelerate in the long run as India aims to become a global hub for electronics manufacturing and innovation. According to a report by a leading consultancy firm, India has the potential to achieve $300 billion worth of domestic electronics manufacturing by 2025-26, creating 10.5 million direct and indirect jobs.

India is also expected to emerge as a major player in the semiconductor industry with supportive Govt policies. We understand Tata Electronics is investing large amounts in the Semicon business area. The Government of India has approved a proposal from Tata Electronics to build a mega semiconductor fabrication facility (‘fab’) in Dholera, Gujarat, in partnership with PSMC. India is also investing in developing its capabilities in emerging technologies such as 5G, the Internet of Things (IoT), artificial intelligence (AI), and cloud computing. All these are progressive acts which will create new opportunities and support the growth momentum of the electronics manufacturing sector.

Q: Do you think Tata’s announcement of its FAB in Gujarat will impact the overall electronics manufacturing space in India?

A: We think that the announcement of Tata’s fab in Gujarat would positively impact the overall electronics manufacturing space in India, as it would boost the domestic semiconductor industry and create new opportunities and demand for the electronics manufacturing sector. The semiconductor industry is the backbone of the electronics industry, as it provides the essential components and chips for various electronic devices and applications. We all know India currently relies heavily on imports for its semiconductor needs, making it vulnerable to supply chain disruptions, price fluctuations, and geopolitical risks. The fab would also create direct and indirect jobs, stimulate innovation, and attract foreign investment in the electronics manufacturing sector.

Q: What segments are generating the most demand for you?

A: The segments that are generating the most demand for Hanwha SMT in India are consumer electronics, lighting, IT, industrial and medical. Hanwha entered the mobile solution segment a few years ago, around 2018-19, and post-COVID, we have seen an exponential jump in Hanwha solution acceptance in that segment, too, with leading global brands opting for our solution.

Q: Are these in line with the trends in the global electronics manufacturing markets?

A: These segments align with the trends taking place in the global electronics manufacturing markets, which are witnessing rapid growth and innovation due to factors such as digital transformation, smart mobility, Industry 4.0, and the healthcare revolution.

Q: With the increased demand for SMT lines in India, will we see any disruptions on the tech front?

A: Increased demand for SMT lines in India might result in disruptions on the tech front, as the industry will face new challenges and opportunities in terms of quality, productivity, efficiency, and sustainability. Hanwha SMT is prepared to meet these challenges. For example, we offer a software solution called ‘Smart Factory’, which enables real-time monitoring, analysis, and optimisation of the SMT production process, resulting in improved yield and throughput. We also offer a software solution called ‘Smart Service’, which provides remote diagnosis, maintenance, and troubleshooting of the SMT equipment, reducing downtime, cost, and risk.

Q: But are EMS companies adopting SMT lines with advanced IoT features?

A: EMS (electronics manufacturing services) companies are adopting SMT lines equipped with advanced IoT features to enhance their competitiveness and profitability in the dynamic and complex electronics manufacturing market. IoT features enable the SMT equipment to communicate with each other and with the external environment, creating a network of smart devices that can collect, process, and share data. This data can be used to optimise the SMT production process, improve quality, reduce waste, and increase customer satisfaction.

Q: Are they inquiring for more, or is that adoption in its early phases?

A: EMS companies are inquiring about SMT lines with advanced IoT features, as they recognise the benefits and value of IoT in the electronics manufacturing industry. However, the adoption of IoT-enabled SMT machines is still in its early phases due to some challenges and barriers related to standardisation, interoperability, security, and scalability.

**Q: The new machines generate vast amounts of data. How do you manage this, given that most companies seek specific insights rather than the full dataset?**

**A:** Indeed, the new machines produce vast data, which holds immense potential for enhancing SMT production efficiency and performance. Hanwha SMT tackles this by offering smart, selective data analysis and visualisation, enabling customers to filter, process, and derive meaningful, actionable insights. Our ‘T Solution’ software leverages data analytics and machine learning to optimise the SMT process, offering recommendations on aspects such as placement speed, feeder arrangement, nozzle selection, and defect detection.

We also provide ‘Smart Service’, a software that applies data analytics and machine learning to deliver predictive and preventive maintenance, fault diagnosis, and remote support for SMT equipment. Additionally, Hanwha SMT offers tailored data solutions based on customers’ specific needs—covering data format, frequency, and scope.

**Q: Some competitors are exploring SMT machine manufacturing in India. Does Hanwha India have similar plans?**

**A:** Each company has its own policies and strategies based on management decisions, which must be respected. The potential of India’s electronics manufacturing market is evident to all. However, Hanwha SMT has no immediate plans to manufacture in India. We find that importing SMT equipment from our global facilities while providing local sales and support is a more effective and efficient approach for both our customers and us.

Moreover, much of the SMT equipment from Korea benefits from the CEPA agreement between South Korea and India, which allows 0% BCD on these imports. Hanwha has a robust presence in India, with a dedicated local team and partners offering timely, reliable support nationwide. We are confident that our global manufacturing expertise, combined with local service capabilities, fully meets our customers’ needs in India.


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