India Accelerates Electronics Manufacturing with New Laptop Assembly Line

New Delhi [India], January 11: India is making significant strides in the electronics manufacturing sector, with a noteworthy development in the assembly of laptops. Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, recently inaugurated Syrma SGS Technology’s advanced laptop assembly line in Chennai, marking a transformative step in the country’s “Make in India” initiative.

This state-of-the-art facility is situated in the Madras Export Processing Zone (MEPZ) and represents a crucial expansion of India’s manufacturing capabilities, now stretching beyond mobile phones into the realm of IT hardware, particularly laptops. The assembly line, which will initially produce 100,000 laptops annually, is set to scale up to a capacity of 1 million units over the next 1-2 years. Syrma SGS already operates four manufacturing units in Chennai, with Unit 3 now focusing on laptop production.

During the inauguration, Minister Vaishnaw emphasized the importance of developing a comprehensive electronic component ecosystem. He noted, “We must work meticulously to ensure that the electronic component ecosystem is also developed in the coming time. This will not only drive a major growth story for India but also align with our vision of Atmanirbhar Bharat, fostering self-reliance and strengthening our position in the global electronics manufacturing landscape.”

The new initiative is part of the Production Linked Incentive (PLI) 2.0 scheme for IT Hardware, which is designed to boost India’s capabilities in high-value electronics manufacturing while enhancing self-reliance in the IT hardware sector. Syrma SGS has partnered with Micro-Star International (MSI), a leading Taiwanese tech company, to manufacture laptops of the highest quality in India. These laptops will cater to both domestic and international markets.

This development is expected to create 150-200 specialized jobs in electronics manufacturing by FY26, providing a significant boost to the economy of Tamil Nadu and the nation. The creation of these roles is expected to positively influence the workforce, strengthening the future talent pool in this sector. The laptops produced at this facility will adhere to international quality standards, further showcasing India’s growing technical and manufacturing expertise.

India’s electronics manufacturing sector has seen tremendous growth in the past decade. In 2014, the sector’s total production was valued at Rs 2.4 lakh crore, a figure that has now surged to Rs 9.8 lakh crore in 2024. Mobile manufacturing alone has reached Rs 4.4 lakh crore, with exports contributing Rs 1.5 lakh crore to the economy in 2024. Currently, 98 per cent of mobile phones used in India are manufactured locally, and smartphones have become the country’s fourth-largest export.

Tamil Nadu, a key player in India’s electronics manufacturing, has over 47 manufacturing units supported by various schemes from the Ministry of Electronics and Information Technology (MeitY). The state stands out as one of the largest beneficiaries of the PLI scheme for Large-Scale Electronics Manufacturing, with seven out of the 27 approved units under PLI 2.0 based there. Notably, the first unit under this initiative was inaugurated yesterday.

Additionally, Tamil Nadu has received substantial backing through initiatives such as the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), with MeitY providing Rs 1,200 crore in support for four applications. The Modified Special Incentive Package Scheme (M-SIPS) has also attracted 33 applications with an investment potential of Rs 15,000 crore and MeitY’s backing of Rs 1,500 crore. These programs have helped Tamil Nadu achieve a total production exceeding Rs 1.3 lakh crore.

The state also hosts the Electronics Manufacturing Cluster (EMC) at Pillaipakkam Village, Sriperumbudur, set up by M/s State Industries Promotion Corporation of Tamil Nadu (SIPCOT). With an investment of Rs 420 crore, including Rs 210 crore from the Government of India, this cluster is expected to draw investments of Rs 8,700 crore and generate 36,300 jobs.

Tamil Nadu accounts for around 30 per cent of India’s electronics exports, solidifying its central role in the nation’s electronics industry. The state also recently gained attention for manufacturing the latest iPhone 16 Pro, which is proudly “Made in India.”

The inauguration of Syrma SGS’s laptop assembly line is seen as a significant milestone in India’s journey towards reducing dependency on imports and expanding its manufacturing capabilities. As the facility increases its production, India is poised to become a global leader in IT hardware manufacturing.

The PLI 2.0 scheme for IT Hardware, which was launched on May 29, 2023, is another driving force behind this growth. It offers a 5 per cent incentive to eligible companies, covering products such as laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. With an investment target of Rs 3,000 crore, PLI 2.0 aims to drive production worth Rs 3.5 lakh crore and create 47,000 jobs across India.

The scheme has already made remarkable progress, with investments of Rs 520 crore, production worth Rs 10,000 crore, and the creation of 3,900 jobs by December 2024. This reflects the substantial impact that the initiative is having on the electronics manufacturing landscape in India.