Foxconn, Dixon, Zetwerk Eye Big Gains from India’s PLI Scheme for Electronics

Top Indian and international players are eyeing the government’s new Production-Linked Incentive (PLI) scheme to increase local production of electronic components. Foxconn, Dixon Technologies, and Zetwerk are some of the top players reportedly looking to make strategic investments under this program to enhance their presence in India’s expanding electronics ecosystem.

Money Control reported that Foxconn is applying for PLI scheme under the smartphone display module category via its subsidiary company Yuzhan Technology. This news comes after Foxconn set up a display module assembly unit in Tamil Nadu. Recently Dixon Technologies also established a new laptop plant near Chennai, TamilNadu.

Foxconn Eyes Display Module Investment

The Foxconn PLI application stands out as a major highlight since it targets further expansion of display module operations within India. Reportedly, Foxconn has shown interest in applying for display module PLI funding because of the rising requirement for locally produced components as India strives to establish itself as a global manufacturing leader.

Foxconn currently stands as a significant manufacturer of electronic devices through assembly operations. By establishing new plants across India, Foxconn also aims to double iphone production in 2025.

Dixon Technologies Bets Big on PLI Opportunity

Domestic electronics company Dixon Technologies is also gearing up for a huge PLI investment. The electronic products manufacturer views the new PLI program as a way of increasing its presence in the components business. The step would not only cut import reliance but also make Dixon a prominent supplier to Chinese alternatives seeking global brands.

B2B manufacturer Zetwerk, has also filed an application under PLI scheme and is looking to develop capabilities to produce precision components used in smartphones and other electronic devices. Zetwerk’s entry into electronics component production comes at a time when demand for high-quality domestic suppliers is growing very fast.

Josh Foulger, president of Zetwerk’s electronics business said, “We are in the process of evaluating the categories carefully. We are on the lookout for appropriate partners who have the right technology and are scalable to help make the process of entering these new categories more seamless.”

Government Pushes for Self-Reliance

The renewed focus on electronic components through the PLI scheme is part of a broader push by the government to strengthen India’s electronics manufacturing sector. The scheme offers financial incentives to eligible companies that commit to significant investment and production output. With geopolitical tensions and global supply chain challenges, this scheme is expected to attract more players seeking to diversify their manufacturing bases.

For companies like Foxconn, Dixon, and Zetwerk, the PLI scheme not only provides financial incentives but also an opportunity to become a part of India’s developing electronics supply chain. With local manufacturing of components, India can move up the value chain and be less import-dependent, particularly from countries such as China.

The involvement of global titans with robust Indian companies reflects increased confidence in the nation’s policy regime and production capacity. As the PLI scheme picks up steam, it is set to generate more employment, lower the import bill, and enable India to become an important player in the global electronics market.