Syrma SGS Technology recently inaugurated its state-of-the-art laptop assembly line in Chennai. Considered a groundbreaking development for India’s electronics manufacturing sector, the event was led by Union Minister of Electronics and Information Technology, Railways, and Information & Broadcasting Shri Ashwini Vaishnaw.

Located in the Madras Export Processing Zone (MEPZ), this facility marks a pivotal shift in India’s ‘Make in India’ journey, extending its dominance from mobile phones to IT hardware manufacturing, especially notebook PCs.

The new assembly line will initially produce 100,000 laptops annually, with a scalable capacity of up to 1 million units within the next one to two years. Syrma SGS currently operates four manufacturing units in Chennai, with its Unit 3 now initiating laptop production.

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“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,” said Vaishnaw.

The initiative, part of the PLI 2.0 scheme for IT Hardware, highlights India’s growing capabilities in high-value electronics production and reinforces the nation’s self-reliance in IT hardware.

Key Highlights

* Global partnership: Syrma SGS has partnered with Micro-Star International (MSI), a leading Taiwanese technology company, to manufacture high-quality laptops in India, catering to both domestic and global markets.

* Boosting local economy: The facility is projected to generate 150-200 specialized jobs in electronics manufacturing by FY26, making a substantial impact on both Tamil Nadu’s regional and India’s national economy. These roles are anticipated to have a ripple effect, shaping and enhancing the future workforce in the sector.

* World-class standards: The laptops produced will meet international quality benchmarks, showcasing India’s evolving technical and manufacturing prowess.

India’s electronics manufacturing sector has grown exponentially over the past decade, with total production increasing from INR2.4 lakh crore in 2014 to INR9.8 lakh crore in 2024. Mobile manufacturing alone has reached INR4.4 lakh crore, with exports at INR1.5 lakh crore in 2024. Majority or 98% of the mobile phones used in India are now being manufactured in India, with smartphones becoming the fourth largest export item from the country.

Tamil Nadu: A Key Contributor

Tamil Nadu has over 47 manufacturing units supported under various schemes of the Ministry of Electronics and Information Technology (MeitY). The state is one of the largest beneficiaries of the Production Linked Incentive (PLI) scheme for large scale electronics manufacturing, with seven out of the 27 approved units under PLI 2.0 located here. The first unit under this initiative was inaugurated yesterday.

Additionally, Tamil Nadu has seen significant support through programs such as Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), with four applications receiving MeitY backing of INR1,200 crore, and Modified Special Incentive Package Scheme (M-SIPS), which has attracted 33 applications with an investment potential of INR15,000 crore, supported by INR1,500 crore from MeitY. Together, these initiatives have enabled companies in Tamil Nadu to achieve a total production exceeding INR1.3 lakh crore to date.

The state is also home to the electronics manufacturing cluster (EMC) at Pillaipakkam Village, Sriperumbudur, established by M/s State Industries Promotion Corporation of Tamil Nadu (SIPCOT). With a project cost of INR420 crore, including INR210 crore in support from the Government of India, this cluster is expected to attract investments worth INR8,700 crore and create 36,300 jobs. Tamil Nadu contributes around 30% of India’s electronics exports, underscoring its pivotal role in the sector. Notably, the latest iPhone 16 Pro is proudly “Made in India” and manufactured in Tamil Nadu.

The inauguration of Syrma SGS’s laptop assembly line marks a new chapter in India’s electronics journey, paving the way for reduced dependency on imports, enhanced employment opportunities, and world-class manufacturing capabilities. As the facility ramps up production, India is poised to become a global leader in IT hardware manufacturing.

PLI 2.0 for IT Hardware

The Production Linked Incentive (PLI) 2.0 for IT Hardware, launched on May 29, 2023, aims to further strengthen India’s electronics manufacturing ecosystem by offering a 5% incentive to eligible companies.

The scheme covers products like laptops, tablets, all-in-one PCs, servers, and ultra-small form factor devices. With a projected investment of INR3,000 crore, PLI 2.0 is expected to drive production worth INR3.5 lakh crore and generate 47,000 jobs across the country.

The scheme has already achieved remarkable progress, with total investments of INR520 crore, production worth INR10,000 crore, and has generated 3,900 jobs.

By: DocMemory
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