State emerges as electronics manufacturing hub

Vijayawada: AP has emerged as a hub for global manufacturing, with a particular emphasis on the Electronics System Design and Manufacturing (ESDM) industry.

The State boasts of multiple large Original Equipment Manufacturers (OEMs) and Original Design (ODMs) in the semiconductor sector. It has 4 Electronics Manufacturing Clusters (EMCs), including two in Tirupati (EMC 1 and EMC 2), one in Sri City and another in Kopparthy, which is currently under construction.

The Tirupati EMCs offer plug-and-play facilities with a total built-up area of 8.5 lakh sq. ft., of which 5.5 lakh sq. ft. has been allotted to prominent firms such as Wingtech, Dixon, Neolync, Foxlink, Sunny Opotech, Karbonn, Munoth, TCL, and others. Meanwhile, Sri City is home to various consumer electronics manufacturers such as Foxconn, ZTT, Havells, Bluestar, Daikin, Panasonic, and Flex, among others.

The YSR EMC is being developed with ready-to-build factory sheds, including approximately 30 Type 1 sheds every 50,000 sq. ft. and 4 Type 2 sheds, each spanning 221,000 sq ft. At present, the State government has developed 3 lakh sq ft of plug-and-play sheds, out of which 2 lakh sq ft has been allotted to a major Indian ESDM player.

The State's facilities have a production capacity of 3.5 million mobile phones per month and 3 million TVs per year. Additionally, Andhra Pradesh hosts a defence electronics manufacturing unit established by Bharat Electronics Limited. With its exceptional connectivity to multiple seaports and airports, proximity to large urban centers, robust industrial infrastructure, skilled workforce, and low cost of doing business, Andhra Pradesh presents an ideal opportunity for global conglomerates to invest in the electronics sector and address the ever-increasing global demand.

YSR EMC is a cutting-edge electronics manufacturing cluster that spans 500 acres and costs INR 750 crores (USD 90 Mn.). It offers state-of-the-art infrastructure to meet the needs of the global large-scale electronics industry, including industrial plots ranging from 0.5 to 60 acres and Ready Built Factories (RBFs) as Plug and Play models. The infrastructure supports mega semiconductor fabs, display fabs, large-scale OSATs, PCB manufacturing, and more, attracting manufacturers of mobile handsets, components and accessories, PV cells and modules, medical electronics, and similar products.

The 2021 Electronics Policy provides incentives such as stamp duty reimbursement, capital subsidy, power subsidy, interest subsidy, logistics subsidy, and Production Linked Incentives (PLI) to enable the low cost of operations and early breakeven, making it an attractive proposition for businesses in the electronics manufacturing space.