India to build chips, magnets, PCBs under Rs 61,671 Crore plan

To expand India's electronics value chain globally, Union IT Minister Ashwini Vaishnaw, on March 30, announced the approval of 75 transformative projects under the Electronic Components and MSME (ECMS) program. The initiative comes with an investment of Rs 61,671 crore and an estimated 65,000 direct jobs across the country. 

"We started by doing manufacturing of finished products, then we moved towards modules, then sub-modules, and then we started looking at manufacturing of components," Vaishnaw said during the press briefing. "This is a very comprehensive way of developing the electronics industry," highlighting that India is now building the "heart" of devices rather than just the outer shell.

The announcement marks a strategic shift in India’s manufacturing journey, moving from assembling finished products to the high-tech production of the internal components that power them.

India to manufacture rare earths and high-end PCBs

Vaishnaw revealed that a unit for rare-earth permanent magnets has been approved, and High-end flexible Printed Circuit Boards (PCBs), essential for modern, compact electronics, will now be manufactured locally.

“The best thing is, the entire technology of this is Indian technology,” Vaishnaw said.

In addition, six applications for capital equipment manufacturing and critical components, like inductors and transducers for the EV ecosystem, will now be produced in-house. "All these were imported. Now they will be manufactured here," Vaishnaw said.

This will reduce India's dependence on Chinese supply chains and boost the country's clean energy and defence ambitions.

Vaishaw highlighted that the latest approvals will meet approximately 61% of domestic demand for capacitors, up from around 35% previously. For relays, domestic manufacturing will meet 100% of demand, with surplus capacity enabling India to become a global exporter. 

Rare earth magnets will see 25% of domestic demand met locally. Metalised films used for critical capacitor manufacturing will meet 44% of domestic volume. 

PCBs will meet approximately 50% of domestic need. Inductors and SMD passive components will meet 5% and 2%, respectively.

"This is a very methodical, step-by-step process," Vaishnaw said. "Where we are able to now become exporters, and we are able to reduce our imports significantly."

Micron's second plant

Vaishnaw further talked about the first Micron plant, which was inaugurated on February 10. Now, India is set to inaugurate the second plant on March 31. Vaishnaw noted that the project moved very quickly from groundwork to actual production in just 19 months, highlighting India's manufacturing capability and the government's commitment to execution. 

"It shows our country's capability. It also shows our government's commitment, and how meticulous planning is happening," he said.