India has launched major electronics manufacturing projects across Gujarat, Rajasthan, Odisha, and Andhra Pradesh—including semiconductor packaging, glass-core substrates, and PCB facilities—with announced investments exceeding $1.2 billion. Domestic value addition remains at just 18–20%, prompting aggressive policy expansion: the Electronics Component Manufacturing Scheme’s budget rose from $2.4 billion to $4.2 billion after attracting $12.1 billion in commitments. CG Semi’s ₹7,600-crore OSAT facility in Gujarat is operational, while Sahasra Semiconductors in Rajasthan targets 400–600 million annual chip packages. Experts warn material dependency—especially for advanced PCBs and substrates—remains a critical vulnerability.
According to www.eetimes.com, India has launched over a dozen new electronics manufacturing initiatives across Gujarat, Rajasthan, Odisha, and Andhra Pradesh—targeting semiconductor packaging, glass-core substrates, PCBs, and electronic components—with combined announced investments exceeding $1.2 billion.
Domestic Value Addition Remains Low Amid Rapid Growth
India’s electronics production has grown to nearly ₹13 lakh crore (~US$13.5 billion), with smartphones now the country’s largest export commodity. Yet domestic value addition in electronics manufacturing remains at just 18% to 20%, according to a written response by Union Minister of State for Electronics and IT Jitin Prasada to Lok Sabha dated April 1, 2026. This gap underscores the government’s push to localize upstream processes—from materials sourcing to advanced packaging—rather than relying on final assembly alone.
Major Investments Across Four States
In Gujarat, CG Semi commenced commercial production at its OSAT facility in Sanand following an investment of more than ₹7,600 crore (~US$797 million). The same state hosts Crystal Matrix’s first commercial mini/microLED display manufacturing facility in Dholera, approved as part of a ₹3,936 crore (~US$413 million) package that also includes Suchi Semicon’s new OSAT project in Surat.
Rajasthan’s Bhiwadi electronics manufacturing cluster—developed by ELCINA at a cost of ₹46.09 crore (~US$4.8 million), with ₹20.24 crore (~US$2.1 million) in central government support—has attracted planned investments exceeding ₹1,200 crore (~US$126 million), of which over ₹900 crore (~US$94 million) is already committed. Within the cluster, Sahasra Semiconductors launched commercial chip packaging under India’s SPECS scheme after investing more than ₹150 crore (~US$15.7 million) and aims to scale annual capacity from ~100 million to 400–600 million units within two to three years.
Upstream Expansion and Component Ecosystem Growth
Odisha signed a framework agreement with Intel and 3DGS to establish an advanced glass-core substrate manufacturing facility near Bhubaneswar—a project described by the government as one of India’s largest high-technology manufacturing investments, though financial details remain undisclosed. Meanwhile, the Electronics Component Manufacturing Scheme (ECMS) has drawn investment commitments totaling ₹1.15 lakh crore (~US$12.1 billion), far surpassing its original target of ₹59,350 crore (~US$6.2 billion). In response, the government raised ECMS’s budget allocation from ₹22,919 crore (~US$2.4 billion) to ₹40,000 crore (~US$4.2 billion).
In Andhra Pradesh, Syrma SGS began construction of a new PCB plant through a joint venture with South Korea’s Shinhyup Electronics. Though the investment amount was not disclosed, the facility is expected to create more than 1,000 direct jobs and produce single-, double-, and multilayer PCBs for India’s expanding electronics sector.
Material Dependency Remains Critical Gap
Chris Mitchell, VP of global government relations at the Global Electronics Association, emphasized that India’s progress must extend beyond assembly and packaging: “As important as India is today, the country seems very focused on becoming an even more important player in the electronics supply chain going forward.” He added, “I think there is a need for the country to better understand its interests relative to the production of the materials that go into electronics manufacturing. India is still very reliant on materials manufactured elsewhere.”
Mitchell specifically cited PCB manufacturing as illustrative: “The country needs to make sure that, especially for more sophisticated assemblies, they can produce the boards here in India.” He noted that high-density interconnect PCB production depends heavily on process control and yield management—capabilities requiring sustained technical investment and workforce development, not just capital infusion.
Source: EE Times
Compiled from international media by the SCI.AI editorial team.
