Interesting things in the world of electronics served as easy to digest articles with a touch of wit.

Electronics is not an easy industry to get into from a business perspective. The initial investment and logistics will deter all but established names in the industry. PM Modi inaugurated the CG Semiconductor Plant in Sanand, Gujarat on July 4, 2026. He said that India will build the ‘entire value chain of electronics’. What is included in this chain, you might wonder. Let us find out.

What does the electronics value chain look like?

The chain includes all steps for an electronic appliance, all the way from mining critical materials to repairing and recycling electronic goods. It is a humongous endeavour to achieve a goal of this scale by any one country.

The value chain has a broad range of disciplines and industries included in it. A simple idea of the scale of co-operation required is given below.

The entire accordion list given above covers a broad set of points, it does not go into the nitty-gritty of each point as each can be a separate 6 month course on its own. One company cannot hope to cover these many points on their own; countries are not able to meet the demands of the electronic industry by themselves. Geographical limitations like a deficiency of raw materials can kill the dreams of a nation to become self sustaining in this industry.

Supporting industries need to be competent and large-scale for high electronic good production. Some industries who have extra oppurtunities in this field are ceramics, chemical, software, construction, educational, and so many more. The amount of jobs that can be generated by favourable execution of this industry in India is huge.

Is it possible for India to make this?

The question arising in your mind is whether India can manage to accomplish this mammoth task. Surprisingly enough, India is quite ahead in the surrounding industries. India has a large number of geological survey firms and mining companies like Geological Survey of India (GSI), Hindalco, NALCO, MOIL, Gujarat Mineral Development Corporation (GMDC).

India is a global exporter of acids, solvents, gases and the like with companies like Tata Chemicals, SRF, PI Industries, Aarti Industries spearheading this industry. Electrical and electronic manufacturing like PCBs, wires, switches and the like are very strong in India with names like AT&S India, PCB Power, Polycab, KEI Industries, and others producing these components. Software and embedded systems is already being outsourced by companies all over the world to India. Chip design firms and start-ups are being actively invested in by the government and through private funding. Logistics and distribution is one of the strongest parts on India due to very strong naval and air trade routes.

Significant gaps exist around the semiconductor ecosystem. Companies are not capable enough to provide materials for an industry that has just begun ramping up. The bucket list of raw materials required for semiconductors isn’t small either, only a few companies in the world are able to make the substances required and even then they are only able to make a few to industrial standards.

India is in a very good position to create an electronics empire due to the abundance of existing resources and a willing workforce but the road will be winding as countries with established dominance in semiconductors are finding it hard to keep up with the modern demand.

Has any country managed to establish a complete end-to-end electronics value chain?

China is the closest to creating a complete electronics value chain due to their single-minded focus on becoming completely self-sufficient and not depend on any other nation for technology. Japan, Taiwan, Malaysia, and South Korea work together to dominate the semiconductor market with their extensive research into advanced materials and very high initial investment into this technolgoy.

The USA is trying to create a semiconductor ecosystem by giving incentives to companies using the CHIPS Act. European countries are creating their own electronics chain and are making a lot of diplomatic and commercial moves which are explained in detail on our blog. Links to the series of posts are given at the end.

Frequently Asked Questions (FAQ)

Ques: What is an electronics value chain?

An electronics value chain is the complete network of industries involved in designing, manufacturing, assembling, distributing, and recycling electronic products. It begins with the exploration and extraction of raw materials, progresses through semiconductor fabrication, PCB manufacturing, component production, and electronics assembly, and ends with distribution, after-sales services, and e-waste recycling. A complete value chain enables a country to manufacture electronic products domestically while reducing dependence on imports.

Ques: How many industries are required to create a self-sustaining electronic ecosystem?

A self-sustaining electronics ecosystem requires eight major industrial pillars: raw materials, the semiconductor ecosystem, the PCB industry, passive and electromechanical components, electronics manufacturing services (EMS), finished electronic products, distribution and after-sales services, and repair, refurbishment, and recycling. These core industries are supported by enabling sectors such as chemicals, industrial gases, robotics, precision engineering, testing and measurement, logistics, software, and research institutions.

Ques: Which companies in India work in electronics?

India already has a well-established presence across much of the electronics value chain. Major companies include Vedanta and Hindalco in mining and metals; Tata Chemicals and SRF in chemicals; Havells, Polycab, and Bharat Electronics (BEL) in electrical and defence electronics; PCB Power and Shogini Technoarts in PCB manufacturing; Dixon Technologies, Tata Electronics, Syrma SGS, and Kaynes Technology in EMS; and Tata Elxsi, MosChip Technologies, and Signalchip in chip design and embedded systems. While these companies provide a strong foundation, India is still developing critical capabilities in semiconductor materials, wafer manufacturing, fabrication, and advanced packaging.

European Union Series