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Dixon and peers move beyond assembly as India’s electronics component push accelerates
Our read
India’s electronics sector will shift from assembly-led growth to component-led localization, but the biggest near-term winners will be firms with OEM offtake, foreign technology partners and balance sheets strong enough to absorb long qualification cycles.
For operators
India’s expanding local component capacity could improve supply resilience, shorten lead times and reduce import exposure for consumer-tech retailers and brands.
Watch
ECMS implementation rules, eligible-component lists, disbursement timelines and minimum investment/value-add thresholds.
The report,
Indian electronics manufacturers led by Dixon are shifting from device assembly to components, backed by ECMS incentives. Amber, Syrma, Kaynes, Optiemus and Tata Electronics are investing in PCBs, modules, packaging and domestic supply chains for consumer electronics and automotive markets.
Reported figures
From the report. Source details below
| Dixon Technologies revenue: | Rs 48,872 crore last year |
|---|---|
| ECMS government support: | Rs 40,000 crore |
| India PCB addressable market: | $5 billion |
| Kaynes Technology FY26 revenue: | Rs 3,626 crore |
| Syrma SGS PCB investment: | Rs 765 crore |
| Syrma planned PCB capacity: | 2.5 million sq m annually |
| Syrma planned high-density PCB capacity: | 1 million sq m |
| Amber/Shogini PCB revenue: | Rs 720 crore in FY25 |
| Amber ECMS-approved multilayer PCB investment: | about Rs 1,000 crore |
| Korea Circuits JV proposed investment: | Rs 3,200 crore |
| Optiemus screen-protector capacity: | 15-20 million annually |
Also in the report
- 90% of Dixon revenue came from smartphones
- Camera and display modules could add 35% value to mobile phones
- Tata Electronics acquired 60% stake in Pegatron
Other figures
- 90% of PCBs are imported
Why it matters to operators
Consumer-tech companies should assess partnerships, supplier development deals and selective acquisitions with India’s emerging PCB, module and packaging specialists to localise critical parts of their supply chain.
The counter-case
The case against this reading — not reported by the source.
The move beyond assembly may be strategically necessary but not economically durable. Components such as advanced PCBs, semiconductor packaging, displays, camera modules and precision parts require scale, yield rates, IP, specialised materials and supplier ecosystems that India may not develop quickly enough to match Chinese, Taiwanese, Korean or Vietnamese incumbents. Subsidies can attract capacity announcements, but they do not guarantee cost competitiveness or sustained customer orders after incentives fade. Companies could also overinvest simultaneously in similar component categories, creating low-utilisation plants, margin pressure and a new dependence on imported machinery, substrates, chips and raw materials.
The source
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