As the Indian government completes a ₹25,000 crore incentive package for the manufacturing of electronic components, Indian electronics manufacturing services (EMS) companies are stepping up their efforts to form alliances with international supply chain participants, especially Chinese corporations.
It is anticipated that the Cabinet will shortly approve this effort, which aims to increase domestic production of essential components such display modules, camera sub-assemblies, printed circuit boards, and lithium cell enclosures.
Prominent firms such as Dixon Technologies, Micromax, Zetwerk, and Syrma SGS are aggressively seeking strategic partnerships and joint ventures with Chinese suppliers that are integrated into global value chains (GVCs).
Because Chinese companies are already well-established in the global electronics ecosystem, these relationships are viewed as essential to staying competitive and avoiding drawn-out qualifying procedures.
Through its group firm Bhagwati Electronics, Micromax has already established a joint venture with China’s Huaqin and teamed with Taiwan’s Phison Electronics for storage modules.
The corporation is creating a ten-year plan to improve the ecosystem for electronics components in India. In a similar vein, Dixon Technologies has partnered with HKC of China to manufacture display modules by the end of 2025 and is looking into additional partnerships for precision parts and battery packs. With government support, Dixon also plans to build a $3 billion display fabrication facility in India.
After the strategy is published, Syrma SGS Technology is assessing possible alliances that are in line with export prospects, while Zetwerk is concentrating on technology transfers and acquisitions to grow its electronics components business.
In anticipation of the policy’s release, Chennai-based EMS company Syrma SGS Technology, which recently secured a contract from MSI to manufacture its laptops in India, is open to collaborations with international component companies.
The government’s relaxed regulations on joint ventures with China demonstrate a practical strategy for incorporating Indian companies into international supply chains while upholding checks and balances.
Every proposal will be examined individually by an interministerial committee led by the Home Ministry. In order to achieve India’s larger objective of producing $500 billion worth of electronics by 2030, this policy change seeks to increase domestic value addition in electronics manufacturing from the current 18% to 35–40%.
