The Economic Times

Electronics makers turn to cheaper materials and localisation as commodity costs bite

Electronics producers are adapting to rising costs by innovating their material choices and enhancing local manufacturing efforts. In place of copper, aluminum is now favored in products like refrigerators and air conditioners. As input costs climb due to soaring commodity prices and AI infrastructure needs, businesses have raised prices but are also strategically absorbing certain cost increases. Simultaneously, they are fine-tuning product designs to minimize expenditures.