"The data center is the new unit of computing." - Jensen Huang, Nvidia
Tariff wall keeping cables out
Indian cable-makers face challenges as US tariffs disrupt exports. Despite high demand of cables for the many new AI data centers, firms like Sterlite and Polycab see margins squeezed by these trade barriers.
Impact on leaders
Sterlite Technologies reported a sharp margin contraction due to these policies. While shifting production to its South Carolina facility, the company still struggles with the financial strain of trade restrictions.
Broader market struggles
Havells India and RR Kabel also felt the heat. Havells reported hit export growth, while RR Kabel saw export shares decline. Even Polycab found international revenue dampened by US restrictions.
Resilience amid uncertainty
HFCL cushioned itself through strategic customs rulings, reporting minimal impact. However, the broader industry remains in flux while awaiting a resolution to bilateral trade tensions between India and the US.
Future of infra
The US continues investing billions in high speed internet access. While North America is a vital market for AI driven buildouts, persistent tariffs remain a significant deterrent for Indian manufacturers.
Summary
US tariffs are hindering Indian cable manufacturers from capitalizing on the American data center boom. While demand for AI infrastructure is soaring, companies face shrinking margins and export declines, forcing them to adjust production strategies while navigating complex geopolitical trade relations.Food for thought
Can Indian manufacturers remain globally competitive if trade barriers decouple the supply chain of critical AI infrastructure?AI concept to learn: AI infrastructure
AI infrastructure refers to the physical hardware like servers and cables that allow AI models to function. These systems are housed in data centers to process enormous amounts of information at high speeds. Without this foundational physical layer, advanced AI software would not operate.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
