Semicon 2.0, ECMS & MPMS together can build end-to-end electronics value chain: ELCINA

Welcoming the Government’s announcement of Semicon 2.0, ELCINA on Tuesday said India’s opportunity now is to connect its rapidly expanding electronics manufacturing base with a stronger domestic semiconductor and component ecosystem, using Semicon 2.0, ECMS and the newly announced Mobile Phone Manufacturing Scheme (MPMS) as three complementary layers of a single value chain.

The semiconductor value embedded in products such as mobile phones, laptops, EVs and AI servers makes this linkage particularly important. Semicon 2.0 can provide the upstream capabilities in chip design, semiconductor manufacturing, advanced packaging, equipment and materials, while ECMS is developing critical components ranging from PCBs, display and camera modules to passive components, electro-mechanicals and manufacturing equipment.

The recently launched MPMS, with an outlay of Rs 62,500 crore, can further create demand and scale for these domestic inputs by promoting mobile-phone manufacturing and higher domestic value addition.


“Semicon 2.0 marks a shift from building individual semiconductor facilities to creating a globally competitive ecosystem. With semiconductors accounting for a significant share of the value of products such as smartphones, laptops, networking equipment, drones, EVs and AI servers, semiconductor capability is fundamental to electronics competitiveness,” said Dr. Sasikumar Gendham, President, ELCINA. “Semicon 2.0’s success will depend on deeper industry participation across the value chain, creating opportunities for domestic suppliers, component manufacturers, technology firms and startups while strengthening India’s long-term resilience and strategic capability.”

India currently imports over 85-90% of its semiconductor requirements, with integrated circuits alone accounting for around $23 billion in annual imports, while electronic components imports are estimated at about $15 billion against domestic demand of $50-55 billion. Even as new fabs and ATMP lines under Semicon 2.0 are expected to reduce chip import dependence by $10-20 billion annually once fully ramped, a large share of value-added components and modules will continue to be imported unless localisation efforts are coordinated across schemes.

Rajoo Goel, Secretary General, ELCINA, added: “Semicon 2.0 can be a critical enabler of the next phase of India’s electronics manufacturing growth. Its convergence with the Rs 40,000 crore Electronics Components Manufacturing Scheme (ECMS) and the Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS) is particularly significant: Semicon 2.0 can strengthen the upstream semiconductor and technology layer, ECMS the domestic component and supply-chain base, and MPMS provide the scale and market pull for downstream manufacturing.”

ELCINA said that as guidelines for Semicon 2.0, ECMS and MPMS are operationalised, the government can consider aligning scheme guidelines so that projects under the three programmes are evaluated with a common view of domestic value addition and supply-chain linkages; encouraging joint projects where chip designers, fabs/ATMP, component makers and mobile/EMS manufacturers co-develop platforms for mobile phones, IT hardware, EVs and allied products; and tracking and reporting domestic value addition in mobile phones and other electronics, so that progress in localising chips, components and modules is visible and can be course-corrected over time.