Foxconn, Dixon, Zetwerk Eye Big Gains from India’s PLI Scheme for Electronics

New Delhi: India’s electronics manufacturing sector is poised for significant expansion as both global giants and homegrown startups prepare to leverage the Government of India’s Production-Linked Incentive (PLI) scheme for electronic components. Industry insiders suggest this could be a pivotal moment for the country’s manufacturing landscape.

According to a report by The Economic Times, Taiwanese manufacturing major Foxconn is gearing up to apply for the PLI scheme under the smartphone display module category. The company is expected to do so through its subsidiary, Yuzhan Technology, which recently set up a display module assembly unit in Tamil Nadu. Sources reveal that this facility is currently undergoing trial operations, a sign of Foxconn’s growing commitment to India’s manufacturing ecosystem.

Foxconn, best known as Apple’s largest contract manufacturer, views the PLI scheme as a strategic opportunity to expand its footprint in India. The company had earlier expressed interest in investing around $1 billion in a smartphone display module assembly facility near Chennai — a plant that would supply Apple and other key clients.

Meanwhile, Tata Electronics, another supplier to Apple, is also eyeing the scheme and is expected to apply under the enclosures category. Reports suggest Tata is actively exploring additional PLI opportunities through its group subsidiaries, further signaling increased participation from India’s leading industrial houses.

Adding to this momentum, Dixon Technologies — a prominent Indian electronics manufacturer — has already begun investing in display modules, with a new facility under construction in Noida. Industry sources indicate the plant will initially manufacture 20 lakh smartphone display modules, scaling up to 40 lakh units in later phases. Additionally, Dixon is evaluating investment opportunities in camera modules, lithium-ion batteries, and enclosures, diversifying its portfolio to capitalize on the growing domestic and export markets.

Startups are not far behind in this race. Zetwerk, a fast-growing contract manufacturing platform, is actively assessing opportunities across multiple categories within the PLI scheme. Josh Foulger, President of Zetwerk’s electronics division, shared with ET, “We are carefully evaluating the categories and looking for the right technology partners who can scale with us to make entry into these new areas more seamless.”

Foulger further emphasized that the scheme has the potential to strengthen India’s electronic system design and manufacturing ecosystem, enhancing the country’s position in global value chains.

With an increasing number of industry leaders and agile startups betting big on the PLI initiative, India’s vision of becoming a global electronics manufacturing hub appears to be gaining strong, tangible momentum.

Disclaimer: This summary is for informational purposes and readers should verify specific details through official reports or consult industry professionals for comprehensive insights