The government’s recently launched Electronics Component Manufacturing Scheme (ECMS) is expected to significantly boost domestic value addition in semiconductor components. According to Ajai Chowdhry, cofounder of HCL and chairperson of the EPIC Foundation, the scheme could raise the value-addition requirement to 15–20 per cent from the current 3–5 per cent. This transformation is likely to unfold over the next three to five years, as companies secure approvals and set up new plants in India.
Chowdhry emphasized that the next critical step for India would be to own intellectual property rights, particularly in semiconductor chip design. He also highlighted microelectronics—covering sensors, power products, and MEMS (micro-electro-mechanical systems)—as an underexplored area. While some R&D institutes in India have made significant progress, he noted that this work has not yet translated into commercial products.
In April, the government formally notified the Rs 22,919 crore ECMS, aimed at promoting domestic manufacturing across key areas such as electronic components, display and camera modules, non-surface mount devices, multi-layer printed circuit boards, and lithium-ion cells for digital applications. The initiative is positioned as a strategic push to strengthen India’s role in the global semiconductor and electronics value chain.
