Over 21,000 jobs in audio electronics segment at risk due to China's rare earth curbs: Elcina estimates
NEW DELHI: Over 21,000 jobs are at risk in the country's audio electronics segment due to restrictions imposed by China on the export of rare earth metals, according to an estimate shared by industry body ELCINA with the government.
In April, China implemented strict export licensing on rare earth elements like terbium and dysprosium which are key inputs for high-performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics.
The country's oldest electronics industry body said that the move has disrupted global supply chains, hitting India's fast-growing hearables and wearables sector hard and the device makers are switching to import fully assembled speaker modules from China.
"This creates a regressive trend-from component manufacturing back to finished good imports dependency. Over 5,000-6,000 direct jobs and 15,000 indirect jobs are at risk in speaker and audio component manufacturing especially in Noida and South India," Elcina stated in the report.
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New Indian Express
5 hours ago
- New Indian Express
Over 21,000 jobs in audio electronics segment at risk due to China's rare earth curbs: Elcina estimates
NEW DELHI: Over 21,000 jobs are at risk in the country's audio electronics segment due to restrictions imposed by China on the export of rare earth metals, according to an estimate shared by industry body ELCINA with the government. In April, China implemented strict export licensing on rare earth elements like terbium and dysprosium which are key inputs for high-performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics. The country's oldest electronics industry body said that the move has disrupted global supply chains, hitting India's fast-growing hearables and wearables sector hard and the device makers are switching to import fully assembled speaker modules from China. "This creates a regressive trend-from component manufacturing back to finished good imports dependency. Over 5,000-6,000 direct jobs and 15,000 indirect jobs are at risk in speaker and audio component manufacturing especially in Noida and South India," Elcina stated in the report.
Time of India
5 hours ago
- Time of India
Rare earth supply crunch: Over 21,000 jobs in India's audio electronics sector at risk due to China curbs, says Elcina report
More than 21,000 jobs in India's audio electronics sector are at risk due to China's curbs on the export of rare earth metals, industry body Elcina has said in a report shared with the government. In April, China implemented stricter licensing rules on the export of key rare earth elements like terbium and dysprosium, which are essential for making Neodymium-Iron-Boron (NdFeB) magnets — widely used in consumer electronics such as hearables, wearables, and speakers. The Electronics Industries Association of India (Elcina) said the move has disrupted supply chains globally and is severely affecting India's fast-growing wearables and hearables market, forcing many manufacturers to switch to importing fully assembled speaker modules from China, PTI reported. 'This creates a regressive trend — from component manufacturing back to finished good imports dependency. Over 5,000–6,000 direct jobs and 15,000 indirect jobs are at risk in speaker and audio component manufacturing, especially in Noida and South India,' Elcina noted. India dependent on China for NdFeB magnets Rare earth magnets make up 5–7% of the bill of materials, and India imports nearly 100% of its NdFeB magnet requirement, with China accounting for 90% of those imports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Seniors Born 1939-1969 Receive 9 Benefits This Month Bettys Perks Learn More Undo Prices for Chinese magnets have surged amid tightened supply and administrative delays, while alternatives from Japan, the EU and the US are 2–3 times costlier and lack adequate capacity. Electronics manufacturer Videotex, which produces televisions for brands such as Havells (Lloyd), Reliance (BPL, Reconnect), Toshiba, and Vijay Sales, said the situation poses challenges, but the immediate impact on TV production is expected to be limited. 'Rare earth-based magnets are critical in TV manufacturing, particularly for speakers due to their compact size and high performance. However, we are working closely with our suppliers to ensure sufficient stock for the upcoming season,' said Arjun Bajaj, Director of Videotex. He added that Videotex is also exploring alternative magnet options like ferrite, which come with acceptable performance trade-offs, and stressed that this disruption highlights the need for long-term strategies to localise and diversify sourcing. Elcina urges government action Elcina has urged the government to begin government-to-government (G2G) talks with China, seek industry-specific exemptions, and boost domestic R&D and manufacturing under the electronics component manufacturing scheme. It also recommended that the government consider a production-linked incentive (PLI) scheme for critical minerals, to reduce India's reliance on China and ensure the resilience of its electronics supply chain. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
6 hours ago
- Time of India
Over 21,000 jobs in audio electronics segment at risk due to China's rare earth curbs: Elcina estimates
Over 21,000 jobs are at risk in the country's audio electronics segment due to restrictions imposed by China on the export of rare earth metals, according to an estimate shared by industry body ELCINA with the government. In April, China implemented strict export licensing on rare earth elements like terbium and dysprosium which are key inputs for high-performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics. The country's oldest electronics industry body said that the move has disrupted global supply chains, hitting India's fast-growing hearables and wearables sector hard and the device makers are switching to import fully assembled speaker modules from China. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 오스템 임플란트 받아가세요 임플란터 더 알아보기 Undo "This creates a regressive trend-from component manufacturing back to finished good imports dependency. Over 5,000-6,000 direct jobs and 15,000 indirect jobs are at risk in speaker and audio component manufacturing especially in Noida and South India," Elcina stated in the report. Elcina estimates that the rare earth metal-based magnets account for around 5-7 per cent of the bill of materials and India imports nearly 100 per cent of its NdFeB magnet requirement with China accounting for 90 per cent of the total imports. Live Events The industry body said that prices of China-origin magnets have increased due to tightened supply and administrative bootlenecks and other sources such as Japan, EU and the US are 2-3 times more expensive and also lack sufficient capacity to meet India's rising demand. Electronics manufacturing services firm Videotex, which produces televisions, said rare earth-based magnets are critical in TV manufacturing, particularly for speakers, due to their superior performance and compact size. "As the country remains heavily reliant on imports for these components, this presents a clear challenge. However, the specific impact on the television manufacturing segment is expected to be relatively limited. We are working closely with our suppliers to ensure adequate stock for the upcoming season, thereby maintaining production continuity," Videotex Director Arjun Bajaj said. Videotex makes TVs for Havels (Lloyd), Reliance Group (BPL & Reconnect), Vijay Sales, Toshiba and over 25 other brands. "Additionally, based on supplier guidance, we are actively exploring alternative solutions such as ferrite magnets, which offer reasonable performance trade-offs. While the disruption is significant, it also underscores the importance of long-term strategies to localise and diversify our component sourcing," Bajaj said. Elcina has urged the government to initiate government-to-government (G2G) dialogue with China, explore industry-specific exemptions similar to those seen in semiconductor trade channels, boost local research and development and manufacturing of rare earth magnets under the electronics component manufacturing scheme. The industry body has recommended government explore the possibility of rolling out a production-linked incentive scheme for critical minerals.
