Global Electronic Companies Seek To Ramp Up India Play

- Advertisement -
- Advertisement -
  • Detailed forms which were sent to Samsung, Pegatron, and Flex on the nature and quantum of investment did not explicit any response
  • Most of these deals will for now be in the sub $1-billion (roughly Rs 7,500 crore) range for now
  • Singapore-based Flextronics also approached the government to avail benefits under the PLI scheme by expanding its Chennai unit

Six global electronics equipment manufacturers, including Samsung Electronics and Taiwan’s Pegatron are in the last stages of discussion with the Ministry of Electronics and Information Technology (MeitY) to either set up units or expand their present ones in India under a special window that expires in three days. These companies had approached the MeitY to to get the benefits under the government’s Production Linked Incentive (PLI) scheme.

An official also said “The talks are in final stages. Most of these deals will for now be in the sub $1-billion (roughly Rs 7,500 crore) range for now. More applications could come in before July 31.”

Among the other global electronic manufacturing companies, Singapore-based Flextronics which has now been re-christened as Flex, has also approached the government to avail benefits under the PLI scheme by expanding its Chennai unit, the sources said. The company currently has 10 other units in India. 

- Advertisement -

Rs 5334 crores in the first year 

The government had earlier made the decision that the new PLI scheme under which companies which set up new mobile and specified manufacturing units or expanded their present units would get incentives of 4 to 6 per cent on incremental sales from goods made in India. 

The scheme which is open for a total of five years aims to give out incentives worth Rs 5334 crore in total for the the first year. This would be divided among all the successful applicants. The total incentive given to each company would be decided by an empowered committee consisting of secretaries from the Department of Economic Affairs, Department of Expenditure, Department of Revenue, Department for Promotion of Industry and Internal Trade, Directorate General of Foreign Trade, apart from the MeitY secretary and the chief executive officer of the Niti Aayog.

On the other hand, existing companies such as LG India which has mobile manufacturing unit in Noida is also looking forward to expanding its units has also applied under the scheme. The official also added,“You have Apple’s Foxconn, which is making the latest models from its Chennai plant. In the budget-category phone segment also, Lava, Dixon and Karbonn have applied. We are reviewing their plans,”

Making India a hub for high end electronics 

Under the PLI scheme, for companies making mobile plans which sell for Rs. 15000 or above, the incentive has been kept at 6 per cent for the first year of their incremental sales. The companies which are owned by Indian national, the total incentives over four years would be capped at Rs 200 crore.

The PLI scheme also envisages incentives for manufacturing some electronic equipment such as transistors, diodes, thyristors, resistors, capacitors and nano-electronic components such as micro electromechanical systems among others. The expenditure on PLI scheme over the next five years is expected to be around Rs 41,000 crore, according to officials. 

Initially, the government’s plans to make India a hub for high-end large electronics equipments and semiconductor units hit a roadblock after most global companies opted to assemble in India rather than set up manufacturing units.

It has also been reported that the Economic Survey 2019-2020 noted this and observed that India should follow the Chinese model of becoming an assembling hub for the world for ‘network products’ such as computers, electronics, and road vehicles to raise its share in the world export market.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Ascend Performance Materials: Pioneering Innovation in the Electronics Sector

0
Bridging material advancements in plastics and technological progress, Ascend leads with customised solutions for a safer, reliable and greener tomorrow. Q. How would you explain...

DigiKey Expands Portfolio With 3PEAK

0
This collaboration adds amplifiers, interface components, data converters, and more, catering to industries such as communication, industrial, medical, and automotive.  In a strategic move aimed...

“Automotive And Medical Will Adopt More Printed Electronics”

0
The automotive industry is experiencing a revolution. But is this revolution limited to the evolution of powertrains? Salil Musale, MD, Naxona (Astarc Group), chats...

Buzz

Log9 Materials Partners With Zeta Energy To Innovate Advanced Battery Systems

0
The collaboration presents substantial advantages for both companies. Zeta Energy's sophisticated lithium-sulfur materials could enable Log9 to enhance overall cell performance, opening up new...

Tata, Shell To Deploy EV Charging Stations Across India

0
This partnership between two industry leaders is anticipated to significantly accelerate the advancement of India's electric vehicle (EV) sector into its next stage. Tata Passenger...

Vulcan Energy Begins Lithium Chloride Production In Germany

0
Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its...

Important Sectors

Log9 Materials Partners With Zeta Energy To Innovate Advanced Battery Systems

0
The collaboration presents substantial advantages for both companies. Zeta Energy's sophisticated lithium-sulfur materials could enable Log9 to enhance overall cell performance, opening up new...

Tata, Shell To Deploy EV Charging Stations Across India

0
This partnership between two industry leaders is anticipated to significantly accelerate the advancement of India's electric vehicle (EV) sector into its next stage. Tata Passenger...

Vulcan Energy Begins Lithium Chloride Production In Germany

0
Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its...

IESA & SEMI Collaborate To Advance India’s Semiconductor Aim

0
In a significant development that bodes well for the nation's semiconductor sector, the India Electronics and Semiconductor Association (IESA) established a strategic partnership with...

Tessolve And NXP Semiconductors Team Up For Connected Cluster

0
This partnership will deliver a flexible, user-friendly platform that enhances the user experience while prioritizing safety and efficiency. Tessolve has announced a strategic collaboration with...

Manufacturing

Log9 Materials Partners With Zeta Energy To Innovate Advanced Battery Systems

0
The collaboration presents substantial advantages for both companies. Zeta Energy's sophisticated lithium-sulfur materials could enable Log9 to enhance overall cell performance, opening up new...

Vulcan Energy Begins Lithium Chloride Production In Germany

0
Listed in both Australia and Frankfurt, the company has secured offtake agreements with automakers such as Volkswagen, Stellantis, and Renault. It reported that its...

Tessolve And NXP Semiconductors Team Up For Connected Cluster

0
This partnership will deliver a flexible, user-friendly platform that enhances the user experience while prioritizing safety and efficiency. Tessolve has announced a strategic collaboration with...

Tesla Starts Making Cars In Germany For India Exports This Year

0
A Tesla team is set to visit India this month to scout locations for a car manufacturing plant, with an estimated investment of around...
Sona Comstar

Sona Comstar Earns Second PLI Certification For Electric Two-Wheeler Hub Motor

0
In 2021, the government launched a five-year output-linked incentive scheme with a budget of Rs 25,938 crore to enhance local production of advanced automotive...