Electronic Components (ECMS)
The ₹40,000 Cr Electronics Component Manufacturing Scheme - PCBs, camera and display modules, passives and the materials beneath them
What this is
- ECMS moves India's electronics story from assembly (thin margins) into components (higher margins, real moats).
- Clearest listed winners: EMS firms integrating backwards into PCBs and modules (Kaynes, Amber, Syrma, Dixon).
- Second wave: materials and equipment makers - laminate, capacitor film, battery chemicals, machine tools.
- The catch: most plants are pre-revenue, rely on Chinese, Korean or Japanese know-how, and the incentive is paid only on delivered sales or capex.
Why now
- India assembles ~₹6.27L Cr of phones a year (FY26) but imports most of what goes inside them.
- ECMS (notified Apr 2025) pays 1-10% of extra sales or 25% of capex for making those parts here; Budget 2026-27 lifted it to ₹40,000 Cr.
- 106 projects worth ₹69,548 Cr were approved by 17 Aug 2026 - above the scheme's ₹59,350 Cr investment target.
- 38 approved plants are already producing; the big PCB, laminate and module plants start up between late 2026 and FY28.
What to watch
- MeitY ECMS tranche approvals (projects, investment, product mix)
- Commercial start-up of the big PCB, HDI and laminate plants (Kaynes Chennai, Ascent Hosur, Syrma Naidupeta, Wipro Doddaballapur)
- First ECMS incentive disbursements and claims
- Press Note 3 approvals for Chinese JV partners (HKC, Q Tech, Vivo)
- Electronic component imports (~US$40bn in FY26) and domestic value addition
- Monthly phone production and export data
Major areas
The map groups the anatomy into these areas before you drop into individual components.
Assembly & EMS
Contract manufacturers that place components on boards and build finished devices - the customers every ECMS plant sells to, and increasingly its owners.
Sub-assemblies (camera & display modules)
Segment A of ECMS: camera and display modules, the two most valuable sub-assemblies inside a phone. Turnover-linked incentive of 1-5% of extra sales.
Printed circuit boards
Segments B and C: multi-layer, HDI and flexible boards - the largest import gap after chips, and the largest pool of ECMS approvals by number.
Enclosures & mechanicals
Precision-machined aluminium and moulded housings for phones, laptops and wearables - where Tata, Foxconn and Motherson are spending most.
Materials & passives
Copper-clad laminate, capacitor film, passive components and Li-ion cell chemicals - Segment D supply chain, paid as a 25% capex subsidy.
Capital equipment
Machine tools and production equipment made in India for electronics plants - Segment D, open for applications until 30 Apr 2027.
Contract manufacturers (EMS)
The listed electronics manufacturers that assemble phones, laptops, meters and car electronics for brands - and are now using ECMS to make the boards and modules they used to import. They are both the scheme's biggest customers and its biggest applicants.
Dixon Technologies
ListedIndia's largest EMS company (phones, TVs, appliances) using ECMS to move into camera modules, display modules and optical transceivers through JVs with Chinese partners
Kaynes Technology India
ListedHigh-mix EMS (industrial, auto, aerospace, meters) building India's broadest ECMS footprint: HDI and multi-layer PCBs, laminate and camera modules in Tamil Nadu
Syrma SGS Technology
ListedEMS company (industrial, auto, consumer, healthcare) adding a multi-layer and HDI PCB fab in Andhra Pradesh with Korea's Shinhyup, plus camera modules
Amber Enterprises India
ListedRoom-AC contract manufacturer turning into an electronics group: IL JIN (EMS) and Ascent Circuits (PCBs), now building multi-layer and HDI board plants
Cyient DLM
ListedDesign-led EMS for aerospace, defence, medical and industrial customers - a buyer of the high-reliability boards ECMS fabs will make
Avalon Technologies
ListedEMS for US and Indian industrial, clean-energy, mobility and medical customers, with in-house cable, sheet-metal and PCB assembly
Potential bottlenecks
- Copper foil and glass cloth are still importedCopper-clad laminate
- Resin formulation know-howCopper-clad laminate
- Qualification with PCB fabs and their customersCopper-clad laminate
- Cell technology and equipment are importedLi-ion cells & battery chemicals
- Materials need long qualification with cell makersLi-ion cells & battery chemicals
- Most demand for battery chemicals today is outside IndiaLi-ion cells & battery chemicals
- Ceramic powders and electrode pastes are importedPassives & capacitor film
- Scale economics favour the global majorsPassives & capacitor film
- Automotive-grade qualification takes yearsPassives & capacitor film
- Laminate, copper foil, chemicals and equipment are importedMulti-layer PCBs
- Process know-how and yield (many fabs use Korean/European partners)Multi-layer PCBs
- Effluent treatment and water - plating is a wet chemical processMulti-layer PCBs
- Very high capex per unit of outputHDI & flex PCBs
- Phone-brand qualification takes 12-24 monthsHDI & flex PCBs
- Few Indian engineers with HDI process experienceHDI & flex PCBs
- Thousands of imported CNC machines per plantEnclosures & mechanicals
- Anodising and finishing know-howEnclosures & mechanicals
- Qualification by Apple/Samsung-class customersEnclosures & mechanicals
- Panels (glass) are not made in India; only the module step isDisplay modules
- Chinese partner technology (HKC) needs Press Note 3 approvalDisplay modules
- Large working capital for panel inventoryDisplay modules
- Imported boards and modules set the cost floor; local value addition is still ~18-20%EMS & SMT assembly
- Working capital and customer concentration (a few phone brands dominate)EMS & SMT assembly
- Skilled SMT engineers and yield know-howEMS & SMT assembly
- Precision, speed and reliability gap versus Japanese/Taiwanese machinesCapital equipment
- Imported controllers, spindles and linear guidesCapital equipment
- Customer trust for high-uptime linesCapital equipment
- Image sensors and lenses still imported (Sony, Samsung, Chinese lens makers)Camera modules
- Know-how sits with Chinese partners, needing Press Note 3 approvalCamera modules
- Clean-room yield rampsCamera modules
Companies in this theme
28 companies, 16 listed. The 6 contract manufacturers (EMS) are listed above.
UNO Minda
ListedAuto-component major (lighting, switches, sensors, EV electronics) adding automotive camera modules
Company page →Minda Corporation
ListedSpark Minda group auto-electronics supplier whose subsidiary Minda Instruments makes instrument clusters and is adding TFT display modules
Company page →Samvardhana Motherson International
ListedGlobal auto-components group building precision enclosures for phones and IT hardware through Motherson Electronic Components
Company page →Hindalco Industries
ListedAditya Birla Group's aluminium and copper major, approved to make aluminium extrusions for mobile phone enclosures
Company page →Jyoti CNC Automation
ListedRajkot machine-tool maker (CNC turning and machining centres) - the largest ECMS capital-equipment approval
Company page →ASM Technologies
ListedEngineering-services and design-led manufacturing company approved to make high-precision capital equipment
Company page →SRF
ListedChemicals and films major supplying capacitor-grade polypropylene film, the dielectric inside film capacitors
Company page →PCBL Chemical
ListedIndia's largest carbon-black maker, approved to make acetylene black - the conductive additive in Li-ion battery electrodes
Company page →Acutaas Chemicals
ListedGujarat specialty chemicals company (pharma intermediates, CDMO) with a fast-growing battery-electrolyte-additives business
Company page →BPL
ListedOld consumer-electronics brand that now mainly makes printed circuit boards for lighting and automotive customers
Company page →Tata Electronics
UnlistedTata Group's electronics arm - iPhone assembly and precision enclosures in Hosur, plus the Dholera fab - approved for phone and IT-hardware enclosures
Foxconn (Yuzhan Technology India)
UnlistedFoxconn's Indian component unit, approved for phone and IT-hardware enclosures
Samsung Display Noida
UnlistedSamsung's Indian display-module unit, approved for display module sub-assembly
Bhagwati Products (Micromax-linked)
UnlistedMicromax group's manufacturing arm, approved for display modules and enclosures
AT&S India
UnlistedIndian arm of Austria's AT&S, a global HDI and IC-substrate leader, running an HDI board plant in Nanjangud, Karnataka
Shogini Technoarts
UnlistedPune-based printed circuit board maker expanding under ECMS
Wipro Electronic Materials (Wipro Enterprises)
UnlistedWipro Infrastructure Engineering's new copper-clad laminate business - India's first large laminate plant
TDK India
UnlistedIndian arm of Japan's TDK, approved for capacitors (Jan and Mar 2026 tranches)
Vishay Components India
UnlistedIndian arm of US-listed Vishay Intertechnology, approved in Mar 2026 (₹225 Cr) for passive components
Deki Electronics
UnlistedNoida-based film-capacitor maker approved for capacitors in Jan 2026
ATL Battery Technology (India)
UnlistedIndian unit of Amperex Technology (TDK group), the world's largest maker of small Li-ion cells for phones and laptops
Mitsubishi Electric India
UnlistedIndian arm of Mitsubishi Electric, approved in Aug 2026 (₹99 Cr) to make capital goods
Common questions
Which listed companies are in India's Electronic Components (ECMS) supply chain?
NextResearch maps 16 listed companies across 10 layers of the Electronic Components (ECMS) supply chain. The largest with high exposure, by market cap as of 30 Oct 2026: Dixon Technologies (₹67,253 Cr); Syrma SGS Technology (₹31,352 Cr); Kaynes Technology India (₹21,093 Cr); and Amber Enterprises India (₹20,683 Cr).
What are the layers of the Electronic Components (ECMS) supply chain?
10 layers: Copper-clad laminate, Li-ion cells & battery chemicals, Passives & capacitor film, Multi-layer PCBs, HDI & flex PCBs, Enclosures & mechanicals, Display modules, EMS & SMT assembly, Capital equipment and Camera modules.
Who are the end players in Electronic Components (ECMS)?
In the EMS & SMT assembly layer: Dixon Technologies, Syrma SGS Technology, Kaynes Technology India, Amber Enterprises India and Cyient DLM. Also there, with low exposure: Avalon Technologies.
What are the bottlenecks in India's Electronic Components (ECMS) supply chain?
Copper-clad laminate: Copper foil and glass cloth are still imported. Li-ion cells & battery chemicals: Cell technology and equipment are imported. Passives & capacitor film: Ceramic powders and electrode pastes are imported. Multi-layer PCBs: Laminate, copper foil, chemicals and equipment are imported. More by layer on this page.