Foxconn, Others Plan Investments Under Electronics Component PLI: Report

Foxconn, Tata Electronics, Zetwerk and Dixon are among the companies reportedly eyeing investments in India under the newly launched production-linked incentive (PLI) scheme for electronics components.

Foxconn, the largest contract manufacturer for Apple, is advancing its plans through its subsidiary Yuzhan Technology to apply under the smartphone display module category of the PLI scheme, Economic Times reported.

It has already set up a display module assembly unit in Tamil Nadu and trial runs have already been started.

“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 achieved with smartphone assembly across other categories as well,” a person aware of the development reportedly said.

Tata Electronics is likely to apply under the enclosures category, where the company is already a supplier to Apple. It is also likely to invest INR 2,000 Cr in electronics components manufacturing under the PLI scheme.

Startups like contract manufacturing firm Zetwerk are also eyeing the PLI scheme for various categories and are seeking partners with the right technology and scalability to enter new segments smoothly.

Dixon, which yesterday disclosed that it is expanding beyond smartphone assembly in India to manufacture electronic components such as display modules, camera modules, mechanical enclosures, and lithium-ion batteries, is also looking to reap benefits under the PLI scheme.

The news report noted that Dixon has already started investing in display modules, which is a category under the scheme. “A factory is being constructed for the same in Noida, where in the first phase it will produce two million mobile display modules, which will subsequently be increased to four million,” the ET report noted, citing sources.

What Does The PLI Scheme Entail?

The upcoming electronics PLI scheme in India, approved by the Union Cabinet on 28 March 2025, is aimed at boosting domestic manufacturing of key electronic components and reducing import dependence.

The scheme offers incentives ranging from 4-6% on incremental sales over the base year for goods manufactured in India under large-scale electronics manufacturing.

The government has allocated INR 22,919 Cr for this scheme, which is expected to attract investments worth INR 59,350 Cr and generate direct employment for over 91,600 people.

The China Entry?

Amid China US tariff war, Chinese companies are increasingly viewing India as a promising growth market. 

Companies like Lianchuang Electronics and Haier are actively pursuing JVs with Indian manufacturers (Amber Electronics, Optiemus Electronics) to produce display modules, camera modules and IC chipsets, backed by plans to invest $50 Mn. Lianchuang even became the fire Chinese entity to formally seek India’s electronics component PLI scheme. 

Recent media reports have also revealed that India is considering allowing Chinese companies to own up to 26% in joint ventures for specific, critical electronics components.