Image Source : Roots EMS
India’s leading electronics manufacturing services (EMS) firms are pivoting sharply toward East Asia, sealing strategic partnerships to meet a $2.68 billion component sourcing and production target under the government’s electronics component manufacturing scheme.
Strategic Shift and Key Players
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Top EMS firms including Dixon Technologies, Amber Enterprises, PG Electroplast, Epack Durable, Bhagwati Products (Micromax), and Optiemus are finalizing joint ventures with partners from South Korea, Taiwan, and Japan.
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The move comes amid India’s restrictive stance on Chinese FDI under Press Note 3 and recent Chinese export curbs on rare earth magnets.
Investment and Expansion Plans
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Amber Enterprises plans to submit a ₹4,000 crore application under the component scheme, with phased investments across multiple facilities.
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Dixon Technologies is in advanced talks with South Korean and Taiwanese firms to bolster smartphone and IT hardware manufacturing.
Geopolitical and Policy Drivers
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The partnerships reflect India’s China+1 strategy and aim to reduce dependency on Chinese supply chains.
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The deadline for the component scheme is fast approaching, prompting accelerated dealmaking and capital deployment.
Industry Outlook
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India’s EMS market, currently valued at $20 billion, is projected to grow at 32 percent CAGR through 2026.
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Foxconn and Pegatron have already announced plans to double operations in India, signaling global confidence in the country’s manufacturing ecosystem.
This East Asia pivot marks a defining moment in India’s bid to become a global electronics hub, blending geopolitical caution with industrial ambition.
Sources: Aranca, Projxnews, Economic Times, CNBC TV18.
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