India clears 22 electronic component projects to strengthen domestic supply chains

The Government of India has approved 22 new investment proposals under the third tranche of the Electronics Component Manufacturing Scheme (ECMS). These projects involve a projected investment of Rs 41,863 crore and are expected to generate a total production value of Rs 2.58 lakh crore over the next few years.

Union Minister for Electronics and IT, Ashwini Vaishnaw, announced the approvals emphasising a shift from simple assembly to deep manufacturing. The projects are spread across eight states: Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh, and Rajasthan.

Targeting high-value components

The latest approvals cover 11 specific product segments that are essential for mobile phones, telecom equipment, automotive electronics, and IT hardware. The government has grouped these into three main categories:

• Bare Components: This includes nine approvals for Printed Circuit Boards (PCBs), as well as projects for capacitors, connectors, and enclosures. Notably, ATLbattery Technology received approval to manufacture Lithium-ion cells for digital applications.

• Sub-Assemblies: This category features critical parts like camera modules and display modules. Samsung Display Noida and Kunshan Q Tech Microelectronics are among the key companies cleared to build these units.

• Supply Chain Materials: To support upstream manufacturing, the government cleared projects for anode materials used in batteries, copper-clad laminates, and aluminum extrusions.

Industry leaders join the expansion

The third tranche includes several high-profile domestic and international players.Dixon Technologies, through its subsidiaries and joint ventures, received clearance for two projects, including the manufacturing of optical transceivers in Madhya Pradesh. Foxconn’s subsidiary, Yuzhan Technology, will manufacture enclosures for mobile devices. Other approved applicants include Tata Electronics, Hindalco Industries, Motherson, and Amara Raja-ATL.

A significant milestone in this round is the first approval of a project with Chinese linkage under the component scheme. Kunshan Q Tech, a joint venture where Dixon holds a 51% stake, will manufacture camera modules in Uttar Pradesh.

Economic impact and future goals

The Ministry estimates that these 22 projects will create approximately 33,791 direct jobs. Combined with the 24 projects approved in previous rounds, the total number of sanctioned projects under ECMS now stands at 46, representing a cumulative investment commitment of over Rs 54,500 crore.

Minister Vaishnaw encouraged manufacturers to focus on establishing local design teams and maintaining world-class quality standards to remain globally competitive. He also noted that 2026 would be a landmark year for the sector, as four separate semiconductor units are scheduled to begin commercial production within the year.

The ECMS initiative is part of a broader strategy to reach USD 500 billion in electronics production by 2030. By incentivising the local production of sub-assemblies and bare components, the government intends to reduce the country’s dependence on imports from China, Vietnam, and Taiwan while building a resilient, self-reliant ecosystem.