Millennium Semiconductors, Mouser, RayQ plan India expansion amid electronics boom

New Delhi: Millennium Semiconductors, Mouser Electronics, and RayQ TTI are among specialised semiconductor and electronics warehousing and logistics firms planning to expand their footprint in India, anticipating sustained demand in this growing market, said government officials and industry executives.

Tensions in the Gulf, which historically served as a central logistics hub for the global supply chain, is also spurring these companies to accelerate diversification plans, with India’s growing electronics ecosystem serving as a catalyst for demand.

Also Read: India's chip dreams get a Rs 1.25 lakh crore push with Semiconductor Mission 2.0


Pune-based Millennium Semiconductors, an electronics component and distribution firm, received Karnataka government approval to invest Rs 150 crore for establishing a 250,000 square feet electronics component hub on a 6-acre plot in Bengaluru.

The state government has granted a 25% capital subsidy to the company and will reimburse stamp duty and registration charges as a special incentives package, said MB Patil, Karnataka minister for large and medium scale industries.

“Millennium Semiconductors’ Bengaluru component hub will improve timely access to components for OEMs, EMS players, MSMEs and startups, reduce import dependencies and cost inefficiencies and strengthen local value addition across PCB assembly, prototyping, design and end-product manufacturing,” Patil told ET.

Millennium semiconductors declined to comment.

Meanwhile, Berkshire Hathaway-owned subsidiary RayQ TTI, which specialises in selling interconnect solutions to defence and aerospace industries, is setting up a dedicated warehousing unit that’s expected to reduce the lead time for manufacturers to 1-3 days from weeks, an industry executive said, requesting anonymity.

“RayQ has purchased land and is setting up its facility in Pune,” the executive said. “They are specifically focusing on catering to the auto electronics, aerospace, and defence sectors.” He said the company is starting with a small pilot facility with an investment of Rs 150 crore, expected to be commissioned by next year.

Also, Texas-based Mouser Electronics is scouting for land to set up its first warehouse in India, the executive said.

RayQ and Mouser did not respond to ET's request for a comment.

Also Read: Cabinet approves two new semiconductor units worth Rs 3,936 crore under India Semiconductor Mission

Primary hubs are emerging in Pune, Bengaluru, Hosur, and in Jewar, Uttar Pradesh, with firms looking to open highly specialised and technology intensive storage facilities that require automated rack systems, packaging, and complete dust-free environments and clean rooms.

“Semiconductor warehouses require strict environments such as a Class 1000 clean room to store sensitive chemicals and gases,” said Kumar Priyadarishi, founder, Techovedas, a semiconductor consultancy firm. “There is also a need for nitrogen-purged warehouses, dry warehouses, hazardous chemical storage, and bonded warehouses. Warehouses for components are relatively simpler, requiring temperature and humidity control, similar to automotive warehousing.”

Experts said these warehouses will primarily serve two distinct needs – store the output from component factories, and for final assembly firms looking to near-shore components so they can pull on demand.

The move is expected to help companies such as Tata Electronics, and Dixon Technologies in reducing lead times in procuring key components for manufacturing.

“There is enormous financial upside in this right now with basic trading margins easily exceeding 12-15%,” said the industry executive cited earlier. “This is why the government is not subsidising this sector.”