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Bengaluru Emerges as Key Hub for India's Electronics Industry… New Opportunities for Korean Parts and Equipment Companies
AI, Semiconductor Design, and Electronic Manufacturing Integration to Gauge Market Entry at September Exhibition
Bengaluru, a city in southern India, is emerging as a key hub for the electronics industry. This is because the concentration of AI development, semiconductor design, electronic components, and manufacturing infrastructure in one city is forming a structure where research and development and production demand move together. For Korean electronic component and manufacturing equipment companies, it is being cited as a strategic entry point where demand for design, materials, and equipment opens up before the finished product market.
Last January, the Karnataka state government approved the establishment of an Applied AI Technology Solutions Center and set out to foster industry-applied AI. This initiative is being driven by the joint participation of the central, state, and industrial sectors, focusing on the development of technologies applicable to industrial sites, such as AI, robotics, automation, and supply chain optimization. This demonstrates that Bengaluru is shifting from a talent-centric city to a hub for technology commercialization.
Bengaluru's competitiveness lies in the density of its industrial ecosystem. Karnataka accounts for a significant portion of India's electronic design and production, and is also home to a concentration of semiconductor design firms and global R&D centers. As product design, specification review, and technical evaluation are conducted locally, the demand for components and equipment is also highly likely to converge in this region.
The expansion of data center infrastructure is also cited as a factor behind the increase in demand. Most data centers in Karnataka are concentrated in Bengaluru, and AI-related facilities are being established one after another. This is likely to lead to increased demand for servers, cooling equipment, power management components, and inspection and monitoring equipment. As the Indian electronics industry grows, high-precision components, measurement and inspection equipment, and automation facilities are still considered areas with significant potential for external supply.
The expansion of the Indian electronics manufacturing market is also contributing to this trend. As global supply chain restructuring and the "China Plus One" strategy spread, India is garnering attention as an alternative production base. Consequently, the demand for equipment, materials, and components to enhance local manufacturing capabilities is growing. Inspection equipment, PCB materials, and production automation facilities—sectors where Korean companies possess a competitive edge—are cited as direct beneficiaries.
Exhibitions are cited as a point of contact where one can simultaneously verify local markets and supply chains. From September 16 to 18, the electronics components exhibition 'Electronica India' and the electronics manufacturing exhibition 'Productronica India' will be held concurrently in Bengaluru. As the entire electronics industry—ranging from electronic components, sensors, power management, and embedded systems to SMT, PCB manufacturing, inspection and measurement, and production automation—brings everything in one place, it is expected to serve as a practical entry point for companies considering entering the Indian market.
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