Upstart Rises 879% as Founder Bets on Making Phones in India
Bloomberg 2/8/2021 Saritha Rai
(Bloomberg) Almost three decades ago, Sunil Vachani borrowed $35,000 so he could start making 14-inch television sets in a rented shed outside New Delhi. It was an unconventional choice given India, though renowned for software and services, had long lagged behind in manufacturing.
Today, Vachani’s startup has grown into a sprawling electronics empire. His Dixon Technologies India Ltd. boasts a market value of more than $2.8 billion and the capacity to produce about 50 million smartphones this year. It’s an early indicator of the country’s opportunities and challenges in building a sophisticated manufacturing sector, a top priority for Prime Minister Narendra Modi.
Chip Shortage Spirals Beyond Cars to Phones and Consoles Bloomberg 2/8/2021 Debby Wu, Vlad Savov and Takashi Mochizuki
(Bloomberg) The first hints of trouble emerged in the spring of 2020. The world was in the early throes of a mysterious pandemic, which first obliterated demand then super-charged internet and mobile computing when economies regained their footing. That about-face in a span of months laid the seeds for potentially the most serious shortage in years of the semiconductors that lie at the heart of everything from smartphones to cars and TVs.
Auto and electronics makers that cut back drastically in the early days of the outbreak are now rushing to re-up orders, only to get turned away because chipmakers are stretched to the max supplying smartphone giants like Apple Inc. This week, Qualcomm Inc.’s Cristiano Amon, head of the world’s largest mobile chipmaker, flagged shortages “across the board,” citing the industry’s reliance on ju
Almost three decades ago, Sunil Vachani borrowed $35,000 so he could start making 14-inch television sets in a rented shed outside New Delhi. It was an unconventional choice given India, though renowned for software and services, had long lagged behind in manufacturing.
Today, Vachani’s startup has grown into a sprawling electronics empire. His Dixon Technologies boasts a market value of more than $2.5 billion and the capacity to produce about 50 million smartphones this year. It’s an early indicator of the country’s opportunities and challenges in building a sophisticated manufacturing sector, a top priority for Prime Minister Narendra Modi.
While Vachani, 52, struggled in his early days, his company’s shares have surged 824% since a 2017 initial public offering. Sales and profits have boomed with domestic demand for smartphones, along with India’s ambitious plans to develop its own local industry.
Sunil Vachanis startup has grown into a sprawling electronics empire. His Dixon Technologies boasts a market value of more than $2.5 billion and the capacity to produce about 50 million smartphones this year.
Almost three decades ago, Sunil Vachani borrowed $35,000 so he could start making 14-inch television sets in a rented shed outside New Delhi. It was an unconventional choice given India, though renowned for software and services, had long lagged behind in manufacturing.