Beyond Borders: India’s EMS Titans Forge East Asia Alliances for $2.68 Billion Component Drive

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

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.
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

Amber Enterprises plans to submit a ₹4,000 crore application under the component scheme, with phased investments across multiple facilities.
Dixon Technologies is in advanced talks with South Korean and Taiwanese firms to bolster smartphone and IT hardware manufacturing.

Geopolitical and Policy Drivers

The partnerships reflect India’s China+1 strategy and aim to reduce dependency on Chinese supply chains.
The deadline for the component scheme is fast approaching, prompting accelerated dealmaking and capital deployment.

Industry Outlook

India’s EMS market, currently valued at $20 billion, is projected to grow at 32 percent CAGR through 2026.
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.