Govt clears Foxconn, Tata, Samsung, others for electronic component manufacturing incentives

Companies selected under the fresh tranche will manufacture products in 11 different segments, such as printed circuit boards (PCBs), capacitors, camera modules, display subassemblies, and supply chain items like anode material and laminates. These products have cross sectoral applications such as mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive and IT hardware products.

While interacting with the electronics industry Friday, IT Minister Ashwini Vaishnaw urged the successful applicants and the broader domestic electronics manufacturing sector to have a particular focus on designing their products in-house, and double down on the highest quality levels in their products to make them export competitive.

Two of Apple’s key India supply chain partners – Foxconn and Tata Electronics – have been approved to manufacture enclosures for mobile phones and IT hardware. Particularly, it is Foxconn’s Yuzhan Technologies (India) Pvt Ltd, which has received the approval. Motherson Electronic Components has also been approved to manufacture these products.

The government has green-lit two applications from Dixon Technologies, one where it will manufacture optical transceivers, and another one from Kunshan Q Tech Microelectronics, a subsidiary of the company, for making camera modules. Dixon had acquired a 51 per cent stake in the Indian arm of the China-based Kunshan Q Technology last September. Samsung has been approved to manufacture display modules in India.

Approvals have also been given to NPSPL Advanced Materials for manufacturing of Anode material, which is a critical item for lithium-ion cell manufacturing, Wipro Global Engineering and Electronic Materials for manufacturing of Laminate (Copper clad), which is the base material for PCB manufacturing and constitutes around 30 per cent of the bill of materials of PCB manufacturing, and Hindalco Industries for manufacturing of Aluminium extrusion for mobile phones enclosures, for which the industry currently relies purely on imports.

The approvals for PCBs have been given to nine applicants which include India Circuits, Vital Electronics, Signum Electronics, Epitome Components, BPL Limited, AT & S India, Ascent-K Circuit, CIPSA TEC India, and Shogini Technoarts. The approval for manufacturing of capacitors, which are essential for energy storage and power conditioning in electronic circuits, has been awarded to Deki Electronics and TDK India, a major global manufacturer of electronic components and systems.