Corning-Optiemus JV to seek incentives for cover glass

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Bharat Innovation Glass Technologies, a joint venture (JV) of US-based gorilla glass maker Corning and local contract manufacturer Optiemus Infracom, will soon apply for incentives under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)to make finished cover glass for smartphones in the country.

The JV company is expected to start the production of smartphone cover glass in the October-December quarter of 2024. In the first phase, Bharat Innovation Glass willmake30million pieces of high-quality finished cover glassand will employ between 500 and 1,000 people, John Bayne, senior vice president and general manager of mobile consumer electronics at Corning, said in a media interaction on Thursday.

For Corning, this is the first such JV to make cover glass. Currently, the JV will be involved in finishing the cover glass sheets in India. “Over time, once we have the scale, we would consider bringing the original glass sheet manufacturing here as well,” Bayne added.

According to Bayne, it does not make sense to directly start with manufacturing of cover glass because that will lead to higher costs initially in the absence of a local manufacturing ecosystem in the country. Once there is a scale and development of the local component ecosystem, it would make sense for Corning to bring in the technology for glass manufacturing.

Optiemus and Corning announced the joint venture last month. As part of the arrangement, Optiemus will hold a 70% stake, whereas Corning will hold 30%. The companies did not disclose the investment in the facility. However, it is learnt that the companies will put in close to `934 crore. Further, the companies are yet to decide on the location of the facility and are in talks with Tamil Nadu and Telangana to occupy the land and start operations.

Even if the JV will start making cover glass locally, the same may not lead to reduction in prices of smartphones for the end consumer, according to Bayne.

“Having a local supply chain is probably a good thing and avoids a lot of logistics and shipping costs. This makes it more economical for the OEMs (original equipment makers) who are assembling their phones here,” Bayne said.

Once the company starts operations, the facility will make entry- and premium-level 2D, 2.5D and 3D glasses for the smartphone OEMs. Corning will transfer its technology to the joint venture to start the cover glass finishing operations in the country.