Arduino is considering manufacturing in India. The startup, best known for its open source microcontroller boards, wants to limit the rise in counterfeit boards and meet growing demand from India’s youth.
The Italian company is currently exploring partnerships with electronic manufacturing services (EMS) companies in South Asia to start local production as early as the first quarter of next year, CEO Fabio Violante said in a virtual interview. told TechCrunch. This marks a significant change from the company’s current practice of producing all its boards in Italy.
India is the largest market for Arduino IDE downloads with 3.2 million. The country also has local branches of global Arduino distributors such as DigiKey, Mouser Electronics, and Avnet. However, India’s contribution to the customer base is currently less than 1%. Violante believes that her fake Arduino board is the main reason for this discrepancy.
“The strange situation for us in India is that even though the community is very large and the user base of the Arduino IDE is very large, we have no original product to sell to the Indian market, especially because people can’t afford the original product. “The amount is very small because finished electronic products are subject to high import duties,” he said. “So people mainly buy substitute products or clones, and in some cases those counterfeit products are made in China.”
Arduino clones are currently available for less than half the price of the original board. The latter also includes import duties. Therefore, by starting local manufacturing, Arduino will be selling its boards in India at the same low prices as their Chinese counterparts.
However, the problem with cloned boards is not limited to India, Biollante acknowledged, adding that the company currently sells one original board for every five to six clones in the market.
“This is difficult because we are open source and we make money by selling our original hardware,” he said. “So clones and counterfeits are a big part of the market.”
Arduino is trying to address the problem of counterfeit boards around the world by making its hardware more sophisticated and harder to counterfeit.
“Continuous innovation gives us a competitive edge,” Biollante said. “[The new boards] It uses a more sophisticated microcontroller, a more sophisticated power section that is not as easy to copy and paste. ”
The executive was in New Delhi last week to attend an investor-focused event organized by state agency Invest India, where he met with government officials and members of parliament, including India’s Minister of State for Electronics and Information Technology Rajeev Chandrasekhar. did.
To compete with China, India has been offering cashbacks and subsidies to global manufacturers to become production hubs. As a result, the country’s domestic electronics manufacturing increased by more than 111% to $99 billion in fiscal year 2022-23, from $47 billion in 2017-18, according to government data shared in parliament last week. However, most of this is due to growth in local mobile phone manufacturing. The country is already the second largest manufacturer of mobile phones, with Indian-made handsets accounting for more than 99% of domestic mobile phone sales. The government wants to expand local production not just for mobile phone assembly, but also for components including displays and semiconductors.
Violante told TechCrunch that Arduino is currently considering both large international EMS companies and small local companies in India that specialize in manufacturing electronic circuit boards and development boards.
The executive indicated that the company may initially consider making a $27 product. Uno R4 WiFi It was launched globally earlier this year. It aims to appeal to the masses with specifications such as a 32-bit Cortex M4 processor, 32KB RAM, and 256KB flash storage. However, over time, it may start producing the enterprise-oriented Pro series model that was launched last year.
Violante said Arduino is also looking to work with educational institutions in India to increase brand awareness among students and become part of local curricula. Additionally, partnerships with research institutions help the company connect with companies that collaborate with those institutions. The company already has a partnership with Tata Consultancy Services (TCS) in the US, and plans to expand that partnership in India as well. Furthermore, Arduino specifically plans to cater to local demand, and its initial start in the country means that, unlike many other startups, it does not rely on China for manufacturing, so over time it will grow locally. There is a possibility that the company will move towards exporting the manufactured boards to other countries.
Source: techcrunch.com
