Dixon Technologies expands into electronics component manufacturing while Tata Electronics plans ₹2,000 crore investment under the government’s ₹23,000 crore incentive scheme.
Dixon Expands into Electronics Components; Tata Electronics Plans Major Investment
In a significant boost to India’s electronics manufacturing sector Dixon Technologies has announced its entry into electronic component manufacturing while Tata Electronics is reportedly planning a ₹2,000 crore investment under the government’s ₹23,000 crore incentive scheme.
Dixon’s Foray into Component Manufacturing
Dixon Technologies a leading electronics manufacturing services (EMS) company will now produce electronic components for its own use before exploring exports.
Atul Lall, CEO of Dixon Technologies, revealed the company’s plans:
- Already working on display modules
- Evaluating camera modules, mechanical enclosures, and lithium-ion batteries
- Will actively participate in the Electronics Component Manufacturing Scheme (ECMS)
Initially, the components will be used in-house for products like smartphones (Motorola, Xiaomi, Vivo) and laptops (HP). Later, Dixon aims to supply globally, becoming part of the global value chain.
Tata Electronics’ ₹2,000 Crore Investment Plan
Sources indicate that Tata Electronics is likely to invest ₹2,000 crore in electronic component manufacturing under the government’s Production-Linked Incentive (PLI) scheme.
While Tata Electronics has not officially confirmed the investment the move aligns with India’s push for self-reliance in electronics manufacturing.
Government’s ₹23,000 Crore Incentive Scheme
Last month, the government approved a ₹22,919 crore scheme for passive and non-semiconductor electronic components, aiming to:
✔ Generate 91,600 direct jobs
✔ Attract ₹59,350 crore in investments
✔ Boost domestic value addition
Union Minister Ashwini Vaishnaw stated that only companies with:
- In-house design teams
- Six Sigma quality processes
will qualify for incentives, ensuring high-quality manufacturing standards.
Industry Reactions
- Atul Lall (Dixon & ELCINA President): Welcomes the Six Sigma and design mandate, says internal discussions are ongoing.
- Ashok Chandak (IESA & Semi India President): Supports design house requirement but notes Six Sigma may be tough for MSMEs.
- Pankaj Mohindroo (ICEA Chairman): The scheme will enhance value addition and make Indian manufacturing sustainable.
Why This Matters for India?
- Reduces import dependence for critical components
- Strengthens Make in India in electronics
- Boosts exports in the long run
- Creates jobs and attracts global investments
Conclusion
With Dixon’s expansion and Tata’s potential investment, India’s electronics manufacturing sector is set for a major leap. The government’s incentive schemes and quality mandates will ensure global competitiveness.
