Dixon Technologies, a leading electronics manufacturing services (EMS) company, is set to enter the electronics component manufacturing space, initially focusing on captive requirements before expanding into exports, according to senior company officials.
Speaking about the recently launched Electronics Component Manufacturing Scheme (ECMS), Atul Lal, CEO of Dixon Technologies, said, “Electronics components are the next phase of growth for us.” Dixon has already initiated a project for display modules and is evaluating expansion into camera modules, mechanical enclosures, and lithium-ion batteries.
“We are going to go beyond captive use. In some components, India and Dixon are going to be globally competitive. We aim to become part of the global value chain,” Lal said.
Dixon currently manufactures smartphones for major brands like Motorola and Xiaomi, and has signed an agreement with Vivo for expanded production. It has also commenced laptop manufacturing for HP as part of its diversification strategy.
Tata Electronics Likely to Invest ₹2,000 Crore
Sources indicate that Tata Electronics is expected to invest around ₹2,000 crore under the ₹22,919 crore ECMS, although the company declined to comment on the matter.
The government’s electronics component manufacturing initiative aims to create direct employment for 91,600 people and attract approximately ₹59,350 crore in investments.
At the scheme’s launch, Union Minister Ashwini Vaishnaw emphasized that only companies maintaining Six Sigma-level quality standards and operating dedicated design houses would be considered for participation. This reinforces the government’s vision of driving high-quality manufacturing excellence in the electronics sector.
Also read: India Rolls Out ₹22,919 Cr Scheme for Electronics Components
Industry Welcomes Focus on Quality and Design
Industry leaders have welcomed the government’s push for quality and design integration:
Atul Lal, who is also President of the Electronic Components Industry Association (ELCINA), called the directive on quality and in-house design “most welcome.”
Ashok Chandak, President of India Electronics and Semiconductor Association (IESA) and SEMI India, acknowledged the need for design houses but noted that achieving Six Sigma could be challenging for micro, small, and medium enterprises.
Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), said the scheme would enhance value addition in India and urged financial analysts to view it as value-accretive in the long term.
With companies like Dixon Technologies deepening their component capabilities and players like Tata Electronics poised to invest heavily, India’s electronics manufacturing ecosystem is entering a new phase of depth and competitiveness.
(With inputs from PTI)
