Building the Bricks of Chips: India’s Leap into Electronics Component Manufacturing

When the government of India announced the approval of seven flagship manufacturing projects under its newly launched Electronics Components Manufacturing Scheme (ECMS), it signalled more than just investment—it marked a strategic pivot in how India conceives its technological future. With a total committed investment of approximately ₹5,532 crore, these projects stretch across states like Tamil Nadu, Andhra Pradesh and Madhya Pradesh, and aim to produce critical components such as multi-layer printed circuit boards (PCBs), HDI (high-density interconnect) PCBs, camera modules, copper-clad laminates and polypropylene films—all the building blocks of modern electronics, from smartphones to electric vehicles.

When the first wave of approvals landed, industry watchers noted two things at once: the sheer scale of ambition, and the urgency of the moment. India has long been a massive assembler of electronics, but far less a maker of the componentry that gives devices their value. Imports of core parts have drained value and constrained global positioning. The ECMS, with its mix of incentives, looks to turn that dynamic around. According to the official announcements, the initial seven projects alone are expected to generate component output worth over ₹36,559 crore, meet roughly 20–27 per cent of domestic demand in key categories, and create more than 5,100 direct jobs.

But the importance of today’s announcement lies not just in the numbers. It lies in the ambitions behind them: self-reliance, value-chain ownership, geopolitical hedging. At a time when global supply chains are re-threading—companies seeking diversification away from over-centralised node-countries—India is offering itself as both host and participant. Electronics component manufacturing is no longer an aftermarket—it is central. Domestic production of things like camera modules, once wholly imported, means that India not only retains more economic value but gains strategic autonomy over sectors like telecom, defence, automotive and consumer electronics.

The projects reflect a carefully spread geography. Tamil Nadu hosts five of the units, reflecting the state’s deep industrial ecosystem; Andhra Pradesh and Madhya Pradesh each host one, marking an effort to extend manufacturing beyond traditional hubs. This spreading is intentional: build not just capacity, but regional industrial ecosystems. For component makers, locating near clusters of device assembly lowers logistics cost, aligns skills, and feeds into larger ecosystems of demand.

And the choice of components matters. PCBs—particularly multi-layer and HDI types—are the backbone of modern electronic devices. Camera modules function across phones, tablets, smart automotive systems and industrial sensors. Copper-clad laminates and polypropylene films feed into capacitors, sensors and other high-value systems. By green-lighting domestic production of such inputs, India aims to reduce its import bill—which officials estimate could fall by up to ₹20,000 crore on this batch alone—while securing its role in upward segments of manufacturing.

This is also an affirmation of the policy environment: the ECMS was notified earlier in 2025 with an outlay of close to ₹23,000 crore for incentives, and already over 249 applications with investment intent exceeding ₹1.15 lakh crore have been received. In short: the ambition is large, the response strong. The first tranche of approvals sets a tone: process is open, pace is fast and intent is visible.

Still, challenges remain. Manufacturing electronics components is capital-intensive, technology-sensitive and globally competitive. The shift from assembly to components means India must nurture not just factories, but skill, quality, supply-chain robustness and global connectivity. Raw material sourcing, technology licensing, and global cost competitiveness matter. The gestation for component plants is longer than for device assembly, and market cycles can shift quickly. The government will have to ensure that approved projects progress at pace, that infrastructure—power, logistics, skilled labour—is aligned, that linkages to device-makers are real and not just promised.

For Indian policymakers, this moment is about more than investment. It is about manufacturing identity. If India wants to be “a product nation”, then establishing component capacity is foundational. It means capturing more of the value chain at home, building resilience against supply-chain shocks, and positioning India as both a market and a maker. For an economy that sees electronics exports as one of its fastest-growing horizons, component manufacturing is the next frontier.

On the human dimension, the jobs promised go beyond assembly lines. The growth of advanced manufacturing will demand engineers, technicians, quality-assurance staff, supply-chain managers. This offers new opportunities in regions less historically associated with manufacturing. To turn the promise into reality, local ecosystems—training, infrastructure, logistics—must scale accordingly.

In essence, the approval of these seven projects is more than a policy milestone—it is a statement of intent. It says India is ready to move from being a consumer of technology to being a maker of it; from being a peripheral node to being a global node in electronics. Whether this becomes a turning point will depend on execution, ecosystem maturity and global demand. But the first moves are being made—and for a country that has long sought to leap from “make” to “innovate”, this may be the clearest step yet.