Semicon 2.0 + Mobile Phones (MPMS)
India's chip and phone schemes: Semicon 2.0 for fabs and chip packaging, MPMS for phone assembly
What this is
- MPMS is the near-term money: it pays assemblers on sales growth, so Dixon and the big iPhone assemblers benefit first.
- The local-sourcing bonus ties the two schemes together: more Indian parts and, later, Indian-packaged chips earn assemblers more.
- Semicon 2.0 is the long game: 25-40% capital support for fabs, chip packaging, equipment and materials, with first big fab output not before 2028.
- Listed exposure is thin and mixed: most chip plants are unlisted (Tata, Micron, HCL-Foxconn); CG Power and Kaynes are the cleanest listed ways in.
Why now
- On 15 Jul 2026 the Cabinet approved Semicon 2.0 (₹1.27L Cr) and the Mobile Phone Manufacturing Scheme, MPMS (₹62,500 Cr, FY27-FY31).
- MPMS replaces the smartphone PLI that ended on 31 Mar 2026 and pays up to 1.5% more when phones use Indian-made parts.
- Five chip plants from the first mission now run: Micron, Kaynes, CG Semi, CDIL and Suchi; Tata's Assam plant is in pilot production.
- Smartphones became India's largest single export category in 2025; ~US$29bn in FY26, three-quarters of it iPhones.
What to watch
- MPMS approvals list and first quarterly claims (MeitY)
- Monthly smartphone export data (Commerce Ministry / ICEA)
- Semicon 2.0 project approvals by Cabinet (ISM)
- Commercial-production dates at Tata Assam (pilot since Oct 2026) and Tata Dholera (guided 2028)
- Dixon, Amber and Optiemus export wins vs the MPMS growth hurdle (₹5,000 Cr over FY26 sales in FY27, rising each year)
- Global memory-chip prices and Indian smartphone demand
Major areas
The map groups the anatomy into these areas before you drop into individual components.
Phone manufacturing (MPMS)
Phone brands, the assemblers who build for them and the sub-assembly makers who feed the line - the chain MPMS pays on, from FY27 to FY31.
Chip packaging & test (OSAT)
Plants that turn finished wafers into packaged, tested chips - India's first chip plants are all here, plus new compound-semiconductor and glass-substrate lines.
Wafer fabs, tools & materials
The wafer fab itself and the equipment, gases and chemicals it consumes - the costliest, slowest part of the chain and Semicon 2.0's biggest cheque.
Chip design & IP
Fabless chip companies and design-service firms - Semicon 2.0's first pillar, funded through grants, royalty-based loans and a sales-linked incentive.
Campus & utilities
Construction, ultra-pure water, cleanroom air and power that chip plants need before a single wafer is made.
Phone assemblers
The companies that turn components into finished phones - for Apple, Samsung, Vivo and Indian brands - and whose sales growth MPMS pays incentives on. They are also the buyers whose local-sourcing choices decide how much of the 1.5% bonus flows to Indian parts and chips.
Dixon Technologies
ListedIndia's largest home-grown EMS company and biggest Indian phone assembler (Samsung, Motorola, Xiaomi, Vivo and others)
Foxconn India (incl. Bharat FIH)
UnlistedFoxconn group's Indian plants: its Tamil Nadu unit assembles most of India's iPhones, and Bharat FIH builds phones for other brands
Tata Electronics
UnlistedTata group's electronics arm: iPhone assembly and casings, the Assam OSAT and the Dholera wafer fab with PSMC
Optiemus Infracom
ListedNoida-based EMS company assembling smartphones (Ai+), wearables and IoT modules
Amber Enterprises India
ListedRoom-AC contract manufacturer entering smartphone assembly through a deal with Oppo, alongside its PCB and EMS units
Potential bottlenecks
- Most specialty gases and electronic-grade chemicals are importedGases & chemicals
- Purity certification by each fabGases & chemicals
- Hazardous-material handling and permitsGases & chemicals
- Few Indian companies own chip products; most revenue is services for foreign clientsChip design & IP
- Expensive design software (EDA) and test-chip runs - Semicon 2.0 now funds shared accessChip design & IP
- Long sales cycles: a chip can take 2-4 years from tape-out to volumeChip design & IP
- Specialist cleanroom and UPW know-how still comes largely from Taiwanese, Japanese and US firmsPlant build & utilities
- Reliable water and power supply at new sites (Dholera, Jagiroad)Plant build & utilities
- Skilled construction labour for cleanroom workPlant build & utilities
- Tight qualification standards for parts that touch the waferFab tools & equipment
- Export controls on advanced toolsFab tools & equipment
- Few Indian firms with semiconductor-grade machining and cleanlinessFab tools & equipment
- Process know-how licensed from foreign partners (PSMC)Wafer fab (front-end)
- Customer commitments for a new fab's capacityWafer fab (front-end)
- Specialist engineers and techniciansWafer fab (front-end)
- Customer qualification time, especially for automotive chipsChip packaging & test (OSAT)
- Substrates, lead frames and gold wire are importedChip packaging & test (OSAT)
- Lower capital support under Semicon 2.0 (25-35%) than under Semicon 1.0 (50% from the Centre)Chip packaging & test (OSAT)
- SiC substrates and epitaxy know-how come from a handful of global suppliersCompound semis & advanced packaging
- Small teams and first-time operatorsCompound semis & advanced packaging
- Customer qualification in autos and rail takes yearsCompound semis & advanced packaging
- The growth hurdle rises by ₹5,000 Cr a year, so domestic volume alone will not clear it - exports are neededPhone assembly (EMS)
- Brand-wise counting: an EMS firm cannot pool volumes across customersPhone assembly (EMS)
- Component imports: local value addition reached only ~18-19% under the old PLI, against a 35-40% targetPhone assembly (EMS)
- Indian smartphone demand is soft - CLSA cited a 15-20% fall in May 2026 salesPhone brands & demand
- A global memory-chip shortage is raising phone costs in 2026Phone brands & demand
- Chinese-linked brands (Vivo, Oppo, Xiaomi) need government approval for Indian equity partnersPhone brands & demand
- Chips, displays and camera sensors are still importedPCBA & sub-assemblies
- Scale: global sub-assembly suppliers (Salcomp, Sunwoda, Desay) dominate phone volumesPCBA & sub-assemblies
- Thin phone margins limit what assemblers will pay for local partsPCBA & sub-assemblies
Companies in this theme
38 companies, 21 listed. The 5 phone assemblers are listed above.
Apple (India operations)
UnlistedThe largest brand making phones in India - iPhones are assembled by Foxconn and Tata Electronics, mostly for export
Samsung India Electronics
UnlistedRuns one of the world's largest phone factories at Noida, making Galaxy phones for India and export
Lava International
UnlistedIndia's main home-grown phone brand, the most likely candidate for MPMS Track 2 (Indian brands)
Redington
ListedLarge IT and mobility distributor - distributes iPhones and other smartphones across India
Company page →MosChip Technologies
ListedHyderabad chip-design services company (ASIC, SoC, embedded) building its own product designs
Company page →Larsen & Toubro
ListedL&T's wholly owned fabless chip unit (LTSCT): power, analog and silicon-carbide chips for autos, industry and energy
Cyient
ListedEngineering services company that set up Cyient Semiconductors (Apr 2025) for custom chips (ASICs) and its own fabless products
Company page →Tata Projects
UnlistedEPC contractor that built Micron's Sanand ATMP plant
Ion Exchange (India)
ListedWater-treatment company that makes ultra-pure water (UPW) and zero-discharge systems
Company page →Thermax
ListedUtility systems: boilers, chillers, water treatment and captive power for industrial campuses
Company page →Syrma SGS Technology
ListedEMS and PCBA maker named by brokerages as a beneficiary of local component sourcing
Company page →Kaynes Technology India
ListedEMS company with India's second operating chip-packaging plant (Kaynes Semicon, Sanand) and PCB/camera-module projects under ECMS
Company page →Salcomp India
UnlistedChennai-based maker of phone chargers and mechanics, a major supplier to Apple and Samsung
PG Electroplast
ListedEMS company making room ACs, washing machines and plastic mouldings; mobile handsets are a small legacy line
Company page →Cyient DLM
ListedHyderabad EMS company building circuit boards and boxes mainly for aerospace, defence, medical and industrial customers
Company page →Micron Semiconductor Technology India
UnlistedMemory-chip assembly and test (ATMP) plant at Sanand - India's first chip plant in commercial production
CG Power and Industrial Solutions
ListedPower-equipment maker whose majority-owned CG Semi (with Renesas and Stars Microelectronics) runs a chip-packaging plant at Sanand
Company page →India Chip (HCL-Foxconn JV)
UnlistedHCL group and Foxconn joint venture building a display-driver chip packaging plant at Jewar, UP
SPEL Semiconductor
ListedSmall Chennai chip-packaging company - the only long-standing listed OSAT
Company page →Archean Chemical Industries
ListedMarine-chemicals company (bromine, salt) whose subsidiary SiCSem is building India's first commercial silicon-carbide fab in Odisha
Company page →3D Glass Solutions (HIPS)
UnlistedUS company building a glass-substrate advanced-packaging unit in Bhubaneswar, Odisha
Crystal Matrix
UnlistedIntegrated gallium-nitride (GaN) compound-semiconductor and micro-LED display fab with packaging at Dholera
Powerchip Semiconductor (PSMC)
UnlistedTaiwanese foundry licensing process technology and training staff for Tata's Dholera fab
Semi-Conductor Laboratory (SCL), Mohali
UnlistedGovernment-owned legacy fab for strategic chips (space, defence)
Applied Materials India
UnlistedWorld's largest chip-equipment maker; large engineering centre in Bengaluru
Lam Research India
UnlistedEtch and deposition toolmaker setting up its first Indian silicon-component plant
ASML
UnlistedDutch maker of lithography scanners - partner to Tata Electronics' Dholera fab
ASM Technologies
ListedBengaluru engineering firm doing design and precision manufacturing for semiconductor-equipment makers; JV with Hind High Vacuum for tools
Company page →Linde India
ListedIndustrial-gas company building on-site gas supply for Tata's Dholera fab and a gas facility for Sanand's OSATs
Company page →INOX Air Products
UnlistedIndustrial-gas company building an electronic specialty-gas hub at Dholera
Gujarat Fluorochemicals
ListedFluorochemicals and fluoropolymers maker that set up a semiconductor-materials subsidiary in Jun 2026
Company page →Navin Fluorine International
ListedSpecialty fluorochemicals maker targeting electronic chemicals for semiconductors and batteries
Company page →Common questions
Which listed companies are in India's Semicon 2.0 + Mobile Phones (MPMS) supply chain?
NextResearch maps 21 listed companies across 10 layers of the Semicon 2.0 + Mobile Phones (MPMS) supply chain. The largest with high or medium exposure, by market cap as of 30 Oct 2026: Larsen & Toubro (₹5.32L Cr); CG Power and Industrial Solutions (₹1.27L Cr); Dixon Technologies (₹67,253 Cr); Linde India (₹48,171 Cr); and Syrma SGS Technology (₹31,352 Cr).
What are the layers of the Semicon 2.0 + Mobile Phones (MPMS) supply chain?
10 layers: Gases & chemicals, Chip design & IP, Plant build & utilities, Fab tools & equipment, Wafer fab (front-end), Chip packaging & test (OSAT), Compound semis & advanced packaging, Phone assembly (EMS), Phone brands & demand and PCBA & sub-assemblies.
Who are the end players in Semicon 2.0 + Mobile Phones (MPMS)?
In the Phone assembly (EMS) layer: Dixon Technologies, Amber Enterprises India, Optiemus Infracom, Foxconn India (incl. Bharat FIH) (not NSE-listed) and Tata Electronics (not NSE-listed).
What are the bottlenecks in India's Semicon 2.0 + Mobile Phones (MPMS) supply chain?
Gases & chemicals: Most specialty gases and electronic-grade chemicals are imported. Chip design & IP: Few Indian companies own chip products; most revenue is services for foreign clients. Plant build & utilities: Specialist cleanroom and UPW know-how still comes largely from Taiwanese, Japanese and US firms. Fab tools & equipment: Tight qualification standards for parts that touch the wafer. More by layer on this page.