Syrma SGS eyes India’s largest PCB unit in Andhra Pradesh in Rs 1,800 crore play

Chennai-based electronics manufacturing services firm Syrma SGS Technology is looking to invest Rs 1,800 crore to set up India’s largest multi-layer printed circuit board (PCB) and copper clad laminate (CCL) manufacturing unit in Andhra Pradesh, said people familiar with the development.

The integrated manufacturing facility is likely to be commissioned by 2026-27 and is expected to be located in Naidupeta, near Tirupati district, to capitalise on the close proximity to Chennai, an established hub for electronics manufacturing.

“Syrma SGS is looking to partner with South Korean firm Shinhyup Electronics, which will bring its technological expertise to the venture,” said one of the persons, who did not wish to be introduced. “They have applied for approval under the government’s component PLI (production-linked incentive) scheme."

Shinhyup Electronics is primarily engaged in the manufacturing of PCBs for automobile electronic equipment, home electronic appliances, IT and medical services, as per their website.

Sources said Syrma SGS has been engaged in advanced discussions with the Andhra Pradesh government to secure incentives including capital subsidy, electricity duty incentives and skilling incentives.

Queries sent to Syrma SGS remained unanswered till press time.

A significant aspect of the investment is the integrated manufacturing approach. In addition to producing multi-layer PCBs, Syrma SGS will manufacture CCL, a fundamental raw material for PCB production. The backward integration could reduce dependency on imports and ensure a stable, cost-effective supply chain for advanced PCBs within India.

“The company will also be developing a research and development facility for new engineering,” said the person. “The PCBs from this plant will be used in new-age verticals like smart metering, healthcare and medical devices, automotives and electric mobility.”

Earlier this year, Andhra Pradesh secured Rs 14,000 crore to establish India’s first private semiconductor manufacturing facility as it aims to aggressively attract fresh investments in the state.

The project is a joint venture between India’s Indichip Semiconductors and Japan-based YITOA Micro Technology. The facility will be located at the Orvakal Mega Industrial Park in Kurnool district and will primarily focus on manufacturing silicon carbide chips, which are crucial for energy-efficient technologies such as electric vehicles and renewable energy.