{"id":35979,"date":"2026-08-17T12:16:52","date_gmt":"2026-08-17T06:46:52","guid":{"rendered":"https:\/\/www.niir.org\/blog\/?p=35979"},"modified":"2026-08-17T11:52:30","modified_gmt":"2026-08-17T06:22:30","slug":"electronics-component-manufacturing-business","status":"publish","type":"post","link":"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/","title":{"rendered":"India Is Building Chip Fabs \u2014 And 80% of What They Need Is Still Imported. That&#8217;s Your Business"},"content":{"rendered":"<p><em>Electronics Component Manufacturing Business<\/em><\/p>\n<p>There are 13 Semiconductor Projects currently working or in development in India. Four are projected to go into commercial production this year. The government has allocated \u20b98,000 crore in this financial year under the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem. The <a href=\"https:\/\/meity.gov.in\/ecms\">Electronics Component Manufacturing Scheme (ECMS) <\/a> has sanctioned 75 projects with a total value of about \u20b961,000 crore in eight states.<\/p>\n<p>This headline number isn&#8217;t enough to tell you: Every chip fab, every PCB assembly line, every smartphone plant requires thousands of supporting inputs \u2014 anti-static packaging, precision fasteners, cleanroom consumables, specialty chemicals, calibration services. India presently imports nearly all of them from China, Taiwan, South Korea and Japan. The government is constructing the anchor factories. The ancillary supply chain is very loose.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#The_%E2%82%B961000_Crore_Signal_%E2%80%94_And_the_Component_Gap_Nobody_Is_Talking_About\" >The \u20b961,000 Crore Signal \u2014 And the Component Gap Nobody Is Talking About<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Get_Detailed_Project_Report_DPR_Transistor_and_Semiconductor\" >Get Detailed Project Report (DPR): Transistor and Semiconductor<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Why_the_Entry_Window_Is_Specifically_Now\" >Why the Entry Window Is Specifically Now<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Setting_Up_an_Anti-Static_Packaging_Production_Unit\" >Setting Up an Anti-Static Packaging Production Unit<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Get_Detailed_Insights_from_This_Book_Our_Books\" >Get Detailed Insights from This Book: Our Books<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#The_Margin_Structure_in_Electronics_Component_Supply\" >The Margin Structure in Electronics Component Supply<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Anti-static_packaging_unit_producing_80000_unitsmonth\" >Anti-static packaging unit producing 80,000 units\/month:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#5_Electronics_Supply_Chain_Businesses_You_Can_Start\" >5 Electronics Supply Chain Businesses You Can Start<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Anti-Static_ESD_Packaging_Production_Near_Any_Electronics_Cluster\" >Anti-Static ESD Packaging Production (Near Any Electronics Cluster)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Precision_Fasteners_for_PCB_and_Electronic_Enclosures_CoimbatoreBengaluru\" >Precision Fasteners for PCB and Electronic Enclosures (Coimbatore\/Bengaluru)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Related_Article_Indias_PCB_Manufacturing_Revolution_5_High-Growth_Business_Opportunities_Worth_%E2%82%B940000_Crore\" >Related Article: India\u2019s PCB Manufacturing Revolution: 5 High-Growth Business Opportunities Worth \u20b940,000 Crore<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Cleanroom_Consumables_Manufacturing_BengaluruBhiwadi\" >Cleanroom Consumables Manufacturing (Bengaluru\/Bhiwadi)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Solder_Paste_and_No-Clean_Flux_Formulation_Chemical_Park\" >Solder Paste and No-Clean Flux Formulation (Chemical Park)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Industrial_PCB_Traceability_Labels_and_Barcode_Solutions\" >Industrial PCB Traceability Labels and Barcode Solutions\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#Identify_high-growth_industries_before_others_do\" >Identify high-growth industries before others do<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#NPCS_Your_Electronics_Component_Entry_Guide\" >NPCS: Your Electronics Component Entry Guide<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.niir.org\/blog\/electronics-component-manufacturing-business\/#The_Fab_Is_Here_The_Ancillary_Supply_Chain_Is_Not_Yet\" >The Fab Is Here. The Ancillary Supply Chain Is Not. Yet.<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_%E2%82%B961000_Crore_Signal_%E2%80%94_And_the_Component_Gap_Nobody_Is_Talking_About\"><\/span><strong>The \u20b961,000 Crore Signal \u2014 And the Component Gap Nobody Is Talking About<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The opportunity lies in understanding what India&#8217;s electronics manufacturing sector really requires.<\/p>\n<p>Medium and high-tech sectors now account for 46.3% of the manufacturing value added in India, according to India <a href=\"https:\/\/www.ibef.org\/industry\/electronics-manufacturing\">Electronics Manufacturing Report by IBEF<\/a>. The outlay for <a href=\"https:\/\/assets.kpmg.com\/content\/dam\/kpmgsites\/in\/pdf\/2026\/02\/industrial-development-and-msme-pov-union-budget-2026-27.pdf\">ECMS has been raised from \u20b922,919 crore to \u20b940,000 crore, an increase of 74%, as per the Budget 2026\u201327<\/a>, indicating the government&#8217;s commitment to the matter. The government is establishing three dedicated chemical parks under the plug-and-play cluster model to reduce import dependency on specialty chemicals used for PCB assembly.<\/p>\n<p>The first semiconductor plant outside the India Semiconductor Mission (ISM) operates in Bhiwadi, Rajasthan. The plant has started operations. Thousands of tonnes of ancillary goods will support this facility each year, including epoxy compounds, bonding wire, carrier tape, anti-static packaging, cleanroom garments, and calibration services. All of these are imported at the moment.<\/p>\n<h3 class=\"PDq2pG_selectionAnchorContainer\" style=\"text-align: center;\" data-start=\"0\" data-end=\"55\"><span class=\"ez-toc-section\" id=\"Get_Detailed_Project_Report_DPR_Transistor_and_Semiconductor\"><\/span><strong data-start=\"0\" data-end=\"55\">Get Detailed Project Report (DPR): <\/strong><a href=\"https:\/\/www.niir.org\/profile-project-reports\/profile\/3625\/transistor-semiconductor.html\">Transistor and Semiconductor<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>State<\/td>\n<td>Electronics\/Semiconductor Cluster<\/td>\n<td>Component Gap<\/td>\n<td>Proximity to Fab<\/td>\n<\/tr>\n<tr>\n<td>Karnataka<\/td>\n<td>Bengaluru Electronics City, Mysuru<\/td>\n<td>PCB chemicals, precision fasteners<\/td>\n<td>High \u2014 multiple EMS companies<\/td>\n<\/tr>\n<tr>\n<td>Tamil Nadu<\/td>\n<td>Oragadam Chennai, Krishnagiri<\/td>\n<td>Anti-static packaging, cleanroom PPE<\/td>\n<td>High \u2014 Samsung, Foxconn supply chain<\/td>\n<\/tr>\n<tr>\n<td>Maharashtra<\/td>\n<td>Ranjangaon MIDC Pune, Aurangabad<\/td>\n<td>Calibration services, epoxy compounds<\/td>\n<td>Medium \u2014 automotive electronics<\/td>\n<\/tr>\n<tr>\n<td>Gujarat<\/td>\n<td>Sanand GIDC, Ahmedabad<\/td>\n<td>Stencil printing materials, solder paste<\/td>\n<td>Medium \u2014 new semiconductor parks<\/td>\n<\/tr>\n<tr>\n<td>Andhra Pradesh<\/td>\n<td>Tirupati Electronics Cluster<\/td>\n<td>PCB assembly materials, conformal coatings<\/td>\n<td>High \u2014 new fabs in development<\/td>\n<\/tr>\n<tr>\n<td>Rajasthan<\/td>\n<td>Bhiwadi (ATMP\/OSAT fab)<\/td>\n<td>All ancillaries \u2014 zero local supply currently<\/td>\n<td>Direct \u2014 first fab active<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Why_the_Entry_Window_Is_Specifically_Now\"><\/span><strong>Why the Entry Window Is Specifically Now<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <a href=\"https:\/\/startupindia.gov.in\">Startup India programme MoU with Vultr India offers DPIIT <\/a>recognised startups cloud computing credits and technical infrastructure support, which allows a DPIIT recognised start-up in electronics components to operate their quality management systems and ERP platforms without incurring any significant IT expenses. This is \u20b960,000\u20131.5 lakh a year that can be saved for a unit which requires NAD CAP equivalent quality documentation.<\/p>\n<p>According to <a href=\"https:\/\/www.businesstoday.in\/entrepreneurship\/\">Business Today&#8217;s analysis of India&#8217;s semiconductor supply chain<\/a>, the combined value of electronic component import substitution available to domestic SME suppliers across PCB assembly, packaging, and cleanroom consumables exceeds \u20b98,000 crore annually \u2014 a market that is, today, almost entirely served by imports.<\/p>\n<p>This is not the chip making business. It is the parts, supplies and packaging that the chipmaker purchases each week. A first-generation entrepreneur of \u20b920-50 lakhs can create a thatched supply relation with an anchor fab or EMS company and get 3 years supply contracts before the other people in the market even know the market exists.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Setting_Up_an_Anti-Static_Packaging_Production_Unit\"><\/span><strong>Setting Up an Anti-Static Packaging Production Unit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This is the most easily accessible point in the electronics component supply chain.<\/p>\n<p><strong>Product: <\/strong>ESD (Electrostatic Discharge) safe packaging \u2014 anti-static bags, trays and bubble wrap. All PCB, IC chips and assembled modules should be packaged to be ESD safe. Most of India&#8217;s imports have come from China and South Korea.<\/p>\n<p><strong>Investment: <\/strong>\u20b918\u201328 lakh total.<\/p>\n<p>Anti-static film slitting machine, \u20b96.5 lakh for width 1.2 m and speed 500 m\/min; Heat sealer and bagging line (semi-auto) \u20b92.8 lakh and ESD test equipment (lab grade) \u20b91.8 lakh.<\/p>\n<p><strong>Certification: <\/strong>BIS certification under IS 11673 and ANSI\/ESD S20.20 standards can be obtained within 60 days. No electronics manufacturer can be approached without first consulting a NABL-accredited lab test report.<\/p>\n<p><strong>Location:<\/strong> Industrial zone and within 20 km from any EMS center in the industrial zone: either Sriperumbudur (Samsung), Oragadam (Foxconn), Bengaluru Electronics City, or Bhiwadi (ATMP fab).<\/p>\n<p><strong>Timeline:<\/strong> 4\u20136 months from registration to first supply batch.<\/p>\n<h3 class=\"PDq2pG_selectionAnchorContainer\" style=\"text-align: center;\" data-start=\"0\" data-end=\"56\"><span class=\"ez-toc-section\" id=\"Get_Detailed_Insights_from_This_Book_Our_Books\"><\/span><strong data-start=\"0\" data-end=\"56\">Get Detailed Insights from This Book: <\/strong><a href=\"https:\/\/www.niir.org\/books\/category\">Our Books<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>Item<\/td>\n<td>Specification<\/td>\n<td>Cost (INR)<\/td>\n<\/tr>\n<tr>\n<td>Anti-Static Film Slitting Machine<\/td>\n<td>1.2 m width, 500 m\/min<\/td>\n<td>\u20b96,50,000<\/td>\n<\/tr>\n<tr>\n<td>Heat Sealer + Bagging Line<\/td>\n<td>Semi-automatic<\/td>\n<td>\u20b92,80,000<\/td>\n<\/tr>\n<tr>\n<td>ESD Test Equipment<\/td>\n<td>Lab grade<\/td>\n<td>\u20b91,80,000<\/td>\n<\/tr>\n<tr>\n<td>Civil Modifications (2,000 sq ft)<\/td>\n<td>AC\/cleanroom partition<\/td>\n<td>\u20b93,00,000<\/td>\n<\/tr>\n<tr>\n<td>Raw Material Stock (3 months)<\/td>\n<td>Anti-static film, labels<\/td>\n<td>\u20b92,50,000<\/td>\n<\/tr>\n<tr>\n<td>Working Capital Buffer<\/td>\n<td>2 months opex<\/td>\n<td>\u20b93,00,000<\/td>\n<\/tr>\n<tr>\n<td>BIS + NABL Certification Fees<\/td>\n<td>All fees<\/td>\n<td>\u20b980,000<\/td>\n<\/tr>\n<tr>\n<td>Contingency (10%)<\/td>\n<td><\/td>\n<td>\u20b92,04,000<\/td>\n<\/tr>\n<tr>\n<td><strong>Total Project Cost<\/strong><\/td>\n<td><\/td>\n<td><strong>\u20b922,44,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"The_Margin_Structure_in_Electronics_Component_Supply\"><\/span><strong>The Margin Structure in Electronics Component Supply<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Anti-static_packaging_unit_producing_80000_unitsmonth\"><\/span><strong>Anti-static packaging unit producing 80,000 units\/month:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Capital Expenditure: \u20b920\u201325 lakh Monthly Operating Cost: \u20b92.5\u20133.5 lakh Revenue at 60% Capacity (48,000 units): \u20b92.8\u20133.5 lakh\/month Revenue at 100% Capacity (80,000 units): \u20b94.8\u20136 lakh\/month Gross Margin: 38\u201344% Net Margin: 18\u201326% Payback Period: 20\u201328 months at 70% utilisation<\/p>\n<p>Proximity and response time are the competitive advantages that are durable. A Sriperumbudur-based EMS plant will never choose a supplier 15 km away over another in Shenzhen if the former orders 20,000 bags for a production order that starts within 48 hours.<\/p>\n<table>\n<tbody>\n<tr>\n<td>Scheme<\/td>\n<td>Ministry<\/td>\n<td>Eligibility<\/td>\n<td>Max Benefit<\/td>\n<td>Apply At<\/td>\n<\/tr>\n<tr>\n<td>Electronics Components Manufacturing Scheme<\/td>\n<td>MeitY<\/td>\n<td>Electronics manufacturing units<\/td>\n<td>Capital subsidy on approved products<\/td>\n<td>meity.gov.in<\/td>\n<\/tr>\n<tr>\n<td>PMEGP<\/td>\n<td>MoMSME \/ KVIC<\/td>\n<td>New MSME manufacturing<\/td>\n<td>\u20b925 lakh + 25\u201335% margin subsidy<\/td>\n<td>pmegp.kvic.org.in<\/td>\n<\/tr>\n<tr>\n<td>PLI (Electronics)<\/td>\n<td>MeitY<\/td>\n<td>Incremental production<\/td>\n<td>4\u20136% incentive on production value<\/td>\n<td>meity.gov.in<\/td>\n<\/tr>\n<tr>\n<td>CGTMSE<\/td>\n<td>MoMSME \/ SIDBI<\/td>\n<td>MSME loans up to \u20b95 crore<\/td>\n<td>75\u201385% credit guarantee<\/td>\n<td>cgtmse.in<\/td>\n<\/tr>\n<tr>\n<td>Startup India (DPIIT)<\/td>\n<td>DPIIT<\/td>\n<td>Recognised startups<\/td>\n<td>Vultr cloud credits, mentoring<\/td>\n<td>startupindia.gov.in<\/td>\n<\/tr>\n<tr>\n<td>MUDRA Tarun<\/td>\n<td>Finance Ministry<\/td>\n<td>Loans \u20b95\u201310 lakh<\/td>\n<td>Collateral-free loan<\/td>\n<td>mudra.org.in<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Entrepreneur Spotlight<\/strong> <strong>Meenakshi Subramaniam, Chennai, Tamil Nadu<\/strong> Started an <strong>anti-static packaging unit<\/strong> in Sriperumbudur adjacent to Samsung India with \u20b916 lakh in capital. Within 18 months she secured a supplier code with Samsung, supplying 1.5 lakh ESD bags per month. Annual revenue at full capacity: \u20b952 lakh. Her critical lesson: &#8220;Get your ESD test report from an NABL lab before approaching any electronics manufacturer. They won&#8217;t talk to you without it. The certification costs \u20b98,000 and saves you six months of rejection.&#8221; <a href=\"https:\/\/wep.gov.in\/success-stories\">Reference: Women Entrepreneurship Platform, NITI Aayog<\/a><\/p>\n<figure id=\"attachment_35981\" aria-describedby=\"caption-attachment-35981\" style=\"width: 848px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-35981\" src=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/electronics-component-manufacturing-business-in-India1.webp\" alt=\"Electronics component manufacturing business opportunities in India\" width=\"848\" height=\"1264\" srcset=\"https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/electronics-component-manufacturing-business-in-India1.webp 848w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/electronics-component-manufacturing-business-in-India1-201x300.webp 201w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/electronics-component-manufacturing-business-in-India1-687x1024.webp 687w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/electronics-component-manufacturing-business-in-India1-768x1145.webp 768w, https:\/\/www.niir.org\/blog\/wp-content\/uploads\/2026\/08\/electronics-component-manufacturing-business-in-India1-512x763.webp 512w\" sizes=\"(max-width: 848px) 100vw, 848px\" \/><figcaption id=\"caption-attachment-35981\" class=\"wp-caption-text\">India\u2019s semiconductor growth is creating new opportunities for electronics component manufacturers and ancillary suppliers.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"5_Electronics_Supply_Chain_Businesses_You_Can_Start\"><\/span><strong>5 Electronics Supply Chain Businesses You Can Start<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Anti-Static_ESD_Packaging_Production_Near_Any_Electronics_Cluster\"><\/span><strong>Anti-Static ESD Packaging Production (Near Any Electronics Cluster)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Every electronics manufacturer in India consumes ESD packaging, including bags, trays, moisture barrier bags, and static-dissipative bubble wrap. A production unit near Bengaluru Electronics City, Chennai&#8217;s Oragadam, Pune&#8217;s Ranjangaon MIDC, or Bhiwadi can supply this demand locally. The technology barrier is low; the certification barrier (BIS + ESD S20.20) is achievable in 60 days; and the market is growing at 15\u201320% annually as India&#8217;s electronics output scales. Net margin: 20\u201328%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Precision_Fasteners_for_PCB_and_Electronic_Enclosures_CoimbatoreBengaluru\"><\/span><strong>Precision Fasteners for PCB and Electronic Enclosures (Coimbatore\/Bengaluru)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Every electronic enclosure uses dozens of M2\u2013M5 screws, standoffs, and spacers \u2014 India imports the majority from Taiwan, Japan, and China. A <strong>CNC precision fastener unit<\/strong> with two Swiss-type turning machines can produce 50,000\u2013100,000 precision fasteners per day. The Tamil Nadu Engineering Cluster in Coimbatore has the densest existing precision machining ecosystem for buyer relationships. Net margin: 18\u201324%.<\/p>\n<h3 class=\"wp-block-heading has-text-align-center\" style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Related_Article_Indias_PCB_Manufacturing_Revolution_5_High-Growth_Business_Opportunities_Worth_%E2%82%B940000_Crore\"><\/span>Related Article: <a href=\"https:\/\/www.niir.org\/blog\/india-pcb-manufacturing-business\/\">India\u2019s PCB Manufacturing Revolution: 5 High-Growth Business Opportunities Worth \u20b940,000 Crore<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Cleanroom_Consumables_Manufacturing_BengaluruBhiwadi\"><\/span><strong>Cleanroom Consumables Manufacturing (Bengaluru\/Bhiwadi)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Semiconductor fabs and ATMP units operate in Class 100\u2013Class 1000 <strong>cleanrooms<\/strong> where every garment, wipe, and tool must meet contamination specifications. Nitrile cleanroom gloves and cleanroom wipes see thousands of units consumed per shift, with overseas suppliers meeting almost all of this demand. TA cleanroom consumable manufacturers can establish production units targeting fabs in Bengaluru, Hyderabad, and Bhiwadi. Rajasthan RIPS 2022 offers 30% capex subsidy for units proximate to the Bhiwadi fab. Net margin: 22\u201330%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Solder_Paste_and_No-Clean_Flux_Formulation_Chemical_Park\"><\/span><strong>Solder Paste and No-Clean Flux Formulation (Chemical Park)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>India&#8217;s PCB assembly industry uses approximately 2,000 tonnes of <strong>solder paste and flux<\/strong> annually, almost entirely imported. A specialty chemicals unit under technology licence from a European or Japanese partner can formulate no-clean flux and lead-free solder paste domestically. The three chemical parks in development under <a href=\"https:\/\/www.indiabudget.gov.in\">Budget 2026\u201327<\/a> are specifically designed for this category. Target buyers: Dixon Technologies, Foxconn India, Flextronics, and defence electronics manufacturers. Net margin at scale: 22\u201332%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Industrial_PCB_Traceability_Labels_and_Barcode_Solutions\"><\/span><strong>Industrial PCB Traceability Labels and Barcode Solutions\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Every electronic component shipped from India requires <strong>traceability labels<\/strong> \u2014 barcode\/QR, RoHS compliance declarations, lot number stickers. An industrial label printing unit requires a digital label printer, labelling software PC, and a packaging station. Revenue from 15\u201320 steady electronics clients: \u20b940,000\u201380,000\/month. The fastest entry in the sector with the lowest capital requirement and zero raw material complexity.<\/p>\n<h3 class=\"PDq2pG_selectionAnchorContainer\" style=\"text-align: center;\" data-start=\"0\" data-end=\"76\"><span class=\"ez-toc-section\" id=\"Identify_high-growth_industries_before_others_do\"><\/span><a href=\"https:\/\/www.niir.org\/startup-selector\">Identify high-growth industries before others do<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"NPCS_Your_Electronics_Component_Entry_Guide\"><\/span><strong>NPCS: Your Electronics Component Entry Guide<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before approaching Samsung&#8217;s or Dixon&#8217;s procurement team, you need technical product documentation and a credible supply capability statement. <a href=\"https:\/\/niir.org\">Niir Project Consultancy Services (NPCS)<\/a> publishes project reports for electronics components \u2014 anti-static packaging, precision fasteners, specialty chemicals, and cleanroom consumables \u2014 available at <a href=\"https:\/\/entrepreneurindia.co\">entrepreneurindia.co<\/a>. Their reports include ECMS scheme eligibility analysis, BIS certification requirements, and buyer qualification process documentation specific to India&#8217;s electronics manufacturing clusters.<\/p>\n<p><iframe  id=\"_ytid_25726\"  width=\"750\" height=\"421\"  data-origwidth=\"750\" data-origheight=\"421\" src=\"https:\/\/www.youtube.com\/embed\/njMSANAROiY?enablejsapi=1&#038;autoplay=0&#038;cc_load_policy=0&#038;cc_lang_pref=&#038;iv_load_policy=1&#038;loop=0&#038;rel=1&#038;fs=1&#038;playsinline=0&#038;autohide=2&#038;theme=dark&#038;color=red&#038;controls=1&#038;disablekb=0&#038;\" class=\"__youtube_prefs__  epyt-is-override  no-lazyload\" title=\"YouTube player\"  allow=\"fullscreen; accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen data-no-lazy=\"1\" data-skipgform_ajax_framebjll=\"\"><\/iframe><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Fab_Is_Here_The_Ancillary_Supply_Chain_Is_Not_Yet\"><\/span><strong>The Fab Is Here. The Ancillary Supply Chain Is Not. Yet.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>India&#8217;s semiconductor industry will produce chips at scale within this decade. Every chip, every PCB, every assembled module needs components that India currently imports. The entrepreneur who sets up a local supplier today \u2014 with the right certification, proximate to the right fab \u2014 will be the preferred supplier when procurement managers start qualifying domestic sources. Pick one product. Get one certification. Secure one anchor customer. The rest follows.<\/p>\n","protected":false},"excerpt":{"rendered":"Electronics Component Manufacturing Business There are 13 Semiconductor Projects currently working or in development in India. 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