Dixon to Amber: Homegrown giants lead charge in electronics component plan

Dixon, Amber, Kaynes, Samvardhana Motherson among key applicants

Indian electronics manufacturing services (EMS) companies — including Dixon Technologies (India), Delhi-based Amber Enterprises India, Chennai-based Munoth Industries, Bengaluru-based Aequs, automotive component major Samvardhana Motherson, and Mysuru-based Kaynes Technology India — have emerged as key applicants under the central government’s nearly ₹23,000 crore Electronics Component Manufacturing Scheme. 

According to a senior official in the Ministry of Electronics and Information Technology (Meity), nearly 90 per cent of the applications have come from Indian companies, reflecting their aggressive investment plans. 

Amber has submitted proposals to invest ₹4,200 crore across two projects eligible for incentives under the scheme. One involves setting up a high-density interconnect semiconductor substrate unit — used in mobile devices, automotive electronics, and consumer electronics — at Jewar, Uttar Pradesh. Amber has tied up with Korea Circuit, which will hold a 30 per cent stake and provide technology support. The second project involves a ₹1,000 crore investment in multilayer printed circuit board manufacturing in Hosur,  Karnataka. 

 

Dixon has filed applications in five segments with a total investment of ₹4,000 crore. It is setting up a ₹2,000 crore display module sub-assembly plant in partnership with Chinese firm HKC Overseas, which will hold a 26 per cent stake in the joint venture (JV). A ₹1,000 crore camera module sub-assembly plant is also planned. To fast-track timelines, Dixon has already acquired a 51 per cent majority stake in Kunshan Q Tech Microelectronics (India) for ₹550 crore; the unit is already operational. 

In mechanics (enclosures), Dixon has earmarked ₹500 crore and tied up with Chongqing Yuhai Precision Manufacturing Co., which will take a 26 per cent stake. Another ₹500 crore will go towards lithium-ion (Li-ion) cell manufacturing, for which Dixon is seeking global technology partners. 

Around ₹100 crore has been allocated to optical transceivers, mainly for telecommunications applications. 

Enclosures have attracted the highest investment commitments so far — an average of ₹2,238 crore per applicant across 16 applicants. Besides Dixon, Samvardhana, with planned investments of ₹2,000-2,500 crore, and Aequs, with $100 million (₹887 crore), have also applied. Industry sources indicate both may supply components to Apple Inc. 

Tata Electronics is reportedly planning investments of over ₹2,000 crore in enclosures. It is believed that the firm has also applied and is already supplying enclosures to Apple Inc. A leading metal conglomerate has also expressed interest in the scheme. 

Munoth, which already manufactures Li-ion cells, is investing an additional ₹500 crore under the scheme. It has formed a strategic partnership with China’s Zhuhai CosMX Battery Co., the country’s second-largest Li-ion cell maker, to supply cells to its battery pack unit in India. CosMX will invest up to 26 per cent in the project, subject to Foreign Investment Promotion Board approval. 

A senior Meity official said the ministry initially expected investment proposals worth ₹40,000-45,000 crore and later raised the target to ₹60,000 crore. “But with many big-ticket investments coming in, we’ve crossed the ₹1 trillion mark,” the official said. 

The official has ruled out any immediate request to increase the scheme’s budgetary allocation of ₹22,805 crore. However, the incentive outlay could rise by 1.8x if all applicants are accommodated, given the overwhelming response. 

The official added that most Indian companies have already secured JV partners or technical collaborators, completed financial closures, acquired global units in India to save time, signed buyback arrangements, and even begun construction on some greenfield projects. 

“With this kind of response, India is emerging as a global hub for electronics component manufacturing,” the official said. 

From factory floor to global stage

• ₹1 trillion+ Total investment proposals received, beating expectations
• ₹4,200 crore Amber’s two projects; JV with Korea Circuit
• ₹4,000 crore Dixon’s 5-segment investment plan, including display, camera  modules, enclosures, Li-ion cells, and optical transceivers
• ₹2,238 crore (avg) Investment per applicant in enclosures; 16 applicants in total
• ₹2,000+ crore Tata Electronics’  proposed investment in enclosures
• 1 year Timeline for many projects to begin commercial production