Introduction:
Intel, the American chipmaker, has teamed up with eight electronics manufacturing services (EMS) and original design manufacturers (ODMs) in India, including companies like Bhagwati and VVDN, to accelerate the local production of laptops.
This collaboration is a significant step towards strengthening the “Make in India” initiative, aiming to boost domestic manufacturing.
“Bringing its end-to-end knowledge of the IT industry ecosystem, Intel provided key technological and operational insights to lay the foundations of a robust laptop manufacturing industry in the country,”
~Intel said in a statement Friday
Which partner will do what in Intel & make in India?
Intel has brought its extensive knowledge of the IT industry ecosystem to the table, offering valuable technological and operational insights.
The goal is to establish a robust laptop manufacturing industry within the country, and this partnership is a pivotal part of that endeavor.
Intel’s partners in this initiative are a mix of both electronic manufacturing services (EMS) and original design manufacturers (ODMs).
EMS companies are responsible for assembling electronic devices from components supplied by other companies.
ODMs design and manufacture their own electronic devices, but they often use components from other companies, such as Intel.
In this initiative, Intel’s partners will play the following roles:
- EMS companies will be responsible for assembling the laptops in India.
- ODM companies will design and manufacture the laptops, or they will provide Intel with their designs so that Intel can manufacture the laptops.
In addition to assembling and manufacturing the laptops, Intel’s partners will also be responsible for setting up quality control processes and benchmarking the finished products.
Intel will provide its partners with the knowledge and expertise they need to manufacture laptops in India. This includes knowledge about SMT lines, setting up quality control processes, and benchmarking finished products.
The collaboration between Intel and its partners will help to boost laptop production in India and make laptops more affordable for Indian consumers. It will also help to create jobs and grow the Indian electronics manufacturing ecosystem.
“I am very pleased that global organizations like Intel are partnering with India, helping to build and catalyze the electronics manufacturing ecosystem for laptops and compute. This aligns with Prime Minister Narendra Modi’s vision to drive India’s Digital Economy to $1 Trillion and enable the electronics manufacturing ecosystem to contribute $300 billion by 2025-26,”
~Rajeev Chandrashekar, Union Minister of State for Electronics and IT, Skill Development and Entrepreneurship.
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Intel & Make in India
The list of companies involved in this collaboration includes Dixon Technologies, Kaynes Technology, Optiemus Electronics, Panache Digilife, Smile Electronics, and Syrma SGS, alongside Bhagwati and VVDN.
For some of these companies, this venture represents their initial foray into the world of laptop manufacturing.
By working closely with these Indian manufacturing partners, Intel aims to help them cater to both domestic and global demand for laptops.
This aligns perfectly with the vision of India’s Prime Minister, Narendra Modi, to propel India’s Digital Economy to $1 Trillion and have the electronics manufacturing sector contribute $300 billion by 2025-26.
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Comprehensive Laptop Manufacturing in India
Through this collaboration, Intel has shared its extensive knowledge to streamline the production of entry-level laptops in India. This effort involves the use of advanced Surface Mount Technology (SMT) lines, the establishment of stringent quality control procedures for components, and the benchmarking of final laptop products.
Furthermore, Intel has provided support to Original Design Manufacturers (ODMs), covering both Semi Knocked Down (SKD) and Completely Knocked Down (CKD) processes.
Santhosh Viswanathan, Vice President and Managing Director of Intel’s India Region, considers this partnership a significant milestone in the Indian electronics industry. He emphasizes that Intel’s track record as a catalyst for electronic ecosystems globally is now benefiting India.
This comprehensive approach, spanning from Surface Mount Technology assembly to the finished product, not only aligns with the “Make in India” initiative but also contributes to India’s technological advancement.
The collaboration with Intel has allowed these companies to produce entry-level laptops in India, covering the entire manufacturing process, from surface mount technology assembly to finished products.
Read more: India’s Semiconductor Future Brightens: $1.1B Invested, 10 Major Milestones Reached in 1 Year
What is SKD and CKD that Intel will help with ?
Manufacturing and assembly processes, especially in the automotive and electronics industries, commonly use the terms SKD (Semi Knocked Down) and CKD (Completely Knocked Down).
They refer to the level of assembly and disassembly of a product or component before it reaches its final, ready-to-use state.
These terms are also used in other industries, including electronics, like in the context of laptop manufacturing as mentioned in your previous question.
Semi Knocked Down (SKD) Process:
- In the SKD process, a product or component is partially assembled before shipment or distribution.
- It typically involves breaking down a product into major components or sub-assemblies that are partially assembled but not yet in their final form.
- The goal of SKD is to simplify transportation and reduce costs. SKD kits are easier to ship and may be assembled or further processed closer to the point of sale.
- Local assembly or production facilities typically handle the final assembly, which involves putting together the remaining components and ensuring full functionality.
Completely Knocked Down (CKD) Process:
- In the CKD process, a product or component is disassembled to a greater extent compared to SKD.
- CKD involves breaking down the product into its individual components or parts, essentially in a “knocked down” state, where it is far from its final form.
- Companies use CKD for transportation efficiency and cost savings, but it demands more extensive local assembly or manufacturing to transform the components into the final product.
- The local assembly in the CKD process typically involves skilled labor to put together all the parts and components, resulting in a fully functional product.
In the context of laptop manufacturing, the SKD and CKD processes determine the extent of assembly and disassembly required before a laptop attains its status as complete and ready for use.
This allows companies to optimize their supply chain and manufacturing processes, reduce transportation costs, and potentially meet specific local or regional requirements more efficiently.
Conclusion:
The collaboration with Intel has allowed these companies to produce entry-level laptops in India, covering the entire manufacturing process, from surface mount technology assembly to finished products. This comprehensive approach ensures not only compliance with the Make in India initiative but also contributes to the technological advancement of the nation.
