Smartphone components take centre stage in latest approvals
The central government on Friday approved 22 projects worth ₹41,863 crore under the Electronics Components Manufacturing Scheme (ECMS), with mobile phone enclosures emerging as the largest investment focus. Tata Electronics, Motherson Group and Foxconn’s India arm Yuzhan Technology were among the key beneficiaries of the latest tranche.
The approved projects are expected to generate production worth ₹2.58 lakh crore and create nearly 33,800 direct jobs, reinforcing India’s push to strengthen domestic electronics manufacturing.
Mobile enclosures attract over ₹27,000 crore investment
Mobile phone enclosures alone accounted for more than ₹27,000 crore of the total investment, underlining the government’s strategy to localise high-value and scale-intensive components in the smartphone supply chain.
Yuzhan Technology is projected to generate around 16,210 direct jobs, while Tata Electronics and Motherson Electronic Components are expected to create 1,500 and 5,741 jobs, respectively. All three companies will set up enclosure manufacturing facilities in Tamil Nadu. The exact investment size of individual projects was not disclosed.
First-of-its-kind projects cleared under ECMS
Under the third tranche of ECMS approvals, the Ministry of Electronics and Information Technology (MeitY) also cleared several pioneering projects. These include India’s first anode material manufacturing plant for lithium-ion batteries, a second laminate facility for printed circuit boards (PCBs), and an aluminium extrusion unit for mobile enclosures.
Other beneficiaries include ATL Battery Technology (India) for lithium-ion cells, NPSPL Advanced Materials for anode material production, Wipro Hydraulics for copper-clad laminates, Hindalco Industries for aluminium extrusion, and Samsung Display Noida for display module sub-assemblies.
PCB manufacturing expands across multiple states
The government also approved multiple PCB manufacturing projects across states such as Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu and Uttar Pradesh. Companies receiving approvals include AT&S India, BPL Limited, Epitome Components, Signum Electronics, India Circuits and Ascent-K Circuit.
The approved product categories cover five core components—PCBs, capacitors, connectors, mobile enclosures and lithium-ion cells—along with sub-assemblies such as camera modules, display modules and optical transceivers, and supply-chain inputs including laminates, anode materials and aluminium extrusion.
Domestic demand coverage targets outlined
Electronics and IT Minister Ashwini Vaishnaw said the approved projects would significantly reduce import dependence. India is expected to meet nearly 45% of domestic demand for multilayer and HDI PCBs, 100% of laminate requirements with export potential, and about 55% of lithium-ion cell demand.
Mobile enclosures and optical transceivers are projected to meet the entire domestic demand and support exports. However, components such as connectors, camera modules, anode materials and display modules remain at an early stage of domestic manufacturing.
Focus on design, quality and skill development
Vaishnaw urged approved companies to focus on building design capabilities, strengthening local sourcing, improving quality standards and skilling manpower. He added that future ECMS approvals would depend on measurable progress in these areas.
The government has also expressed willingness to fund capital expenditure for common design facilities, while operational responsibility will rest with industry players.
Semiconductor manufacturing gains momentum
Separately, the minister said India is moving from pilot to commercial semiconductor production. Companies such as Kaynes Technology, CG Semi, Tata Group and Micron are expected to start commercial chip production this year, with Tata’s Assam facility likely to commence operations by year-end.
Vaishnaw noted strong interest from global players in Taiwan, Japan and South Korea, stating that India has moved beyond the scepticism phase and is now viewed as a viable alternative in the global electronics and semiconductor supply chain.
