Electronics parts PLI draws in Dixon, Tatas, Foxconn and others
Several companies including Dixon,
Tata Electronics
,
Zetwerk
and Foxconn are planning to invest through the newly launched production-linked incentive (
PLI
) scheme for electronic components. Foxconn, through its subsidiary Yuzhan Technology, is also looking to apply under the smartphone display module category, as per people aware of the developments.
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"Foxconn has set up a display module assembly unit in Tamil Nadu which has begun trial runs," one of the people told ET. "They have been waiting for the PLI and are very keen to apply for it as they see this as a great opportunity to deepen their presence in India. They want to replicate the success they got with smartphone assembly across other categories as well."
ET was the first to report on September 25 last year that the company, which is Apple's largest contract manufacturer, was looking to pump in about $1 billion to set up a smartphone display module assembly unit near Chennai, which would not only cater to Apple but other clients as well.
Tata Electronics is likely to apply for the enclosures category where the company already is a supplier to Apple. However, sources said the company was also evaluating other categories through group companies. Its Indian competitor Dixon too is eyeing various categories.
"Dixon has already started investing in display modules which is a category under the scheme," another person said. "A factory is being constructed for the same in Noida where in the first phase it will have 2 million display modules in mobiles which will subsequently be increased to four million."
This person added that the company was also evaluating camera modules and lithium-ion batteries and enclosures.
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Queries sent to Dixon, Tata Electronics and Foxconn remained unanswered as of press time Monday.
It isn't just large-scale enterprises but also startups like contract manufacturing firm Zetwerk that are actively evaluating applying for the scheme under various categories.
"We are in the process of evaluating the categories carefully," Josh Foulger, president of Zetwerk's electronics business, told ET. "We are on the lookout for appropriate partners who have the right technology and are scalable to help make the process of entering these new categories more seamless. We could look at having the component business as a division within Zetwerk Electronics."
Foulger said that the scheme will strengthen the electronic system design and manufacturing (ESDM) ecosystem while making India competitive to serve global value chains.
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