United Parcel Service (UPS), the world’s leading parcel delivery firm, is in advanced discussions with several Indian state governments to manufacture some of its parcel-tracking tags in India, a senior executive revealed on Wednesday. This move aligns with India’s ambitious push to become a global semiconductor manufacturing hub.
In an interview with Reuters, UPS Chief Digital and Technology Officer Bala Subramanian stated, “We are working with potential partners … What we are trying to do in India is leverage the semiconductor investments the government is making.” This initiative is a part of Prime Minister Narendra Modi’s strategic agenda to establish India as a significant player in the semiconductor industry, despite initial setbacks in offering $10 billion in incentives to the sector.
UPS began integrating radio-frequency identification (RFID) tags into its parcel-tracking system around two years ago. These tags have significantly streamlined operations by reducing the need for millions of package scans per day and minimizing lost and misdirected packages.
“For every place across the world we’ll be actually building … the tags in India,” Subramanian said, though he did not disclose the specifics regarding the size of the investment or the timeline for when manufacturing would commence, citing that it is “too early” to discuss such details.
Currently, UPS has no manufacturing facilities in India. However, the company marked a significant milestone last August by opening its first technology center in Chennai, Tamil Nadu. This center supports UPS’s U.S. and European technology teams, emphasizing the company’s commitment to expanding its technological capabilities.
“We will continue to grow (in Chennai),” Subramanian added, highlighting UPS’s strategy to enhance its technological footprint in India. Subramanian, who previously served as the digital chief for Best Buy and AT&T, brings substantial expertise to drive this expansion.
As UPS navigates this strategic shift, it aims to capitalize on India’s burgeoning semiconductor sector, aligning with broader industry trends and government initiatives to bolster local manufacturing capabilities.
