Sits downstream of the chip, assembling PCBs and integrating finished electronics that consume the output of the fab and OSAT layers.
Why it matters
This is where chips actually become finished, sellable electronics - it is the demand pull that justifies the upstream fab and packaging investment.
Where the value pool sits
EMS players earn volume-driven, relatively thin assembly margins, but scale is large and growing fast as more electronics manufacturing localises to India.
Key drivers
Electronics manufacturing (PLI) incentive schemes
Domestic consumer-electronics and EV demand
Global supply-chain diversification toward India-based assembly
Potential bottlenecks
Continued import dependence for the chips themselves even as assembly localises
Thin, competitive assembly margins
Working-capital intensity of large-scale component sourcing
Investor metrics to watch
Revenue growth and order book across electronics categories
Margin trend as product mix shifts toward higher-value assembly