India’s component push is attracting more than assembly lines. TDK, Murata Manufacturing and JJMicroelectronics are combining factories with materials research, engineering, distribution and university or startup links. The policy ambition is large, but dependable local supply will depend on whether approved projects become operating plants, qualified vendor networks and products that meet demanding EV, energy, industrial and data-center specifications.
Why India is pushing beyond electronics assembly
The central policy is the Electronics Component Manufacturing Scheme (ECMS), approved in May 2025. Its purpose is to close supply-chain gaps by supporting component production rather than concentrating value creation in final assembly.
EE Times reported in 2025 that the scheme had attracted 249 investment proposals worth ₹1.15 trillion ($12.96 billion), nearly twice the government’s original target. The scheme’s fiscal outlay is about $2.75 billion over six years, a government figure reported by EE Times.
Demand is arriving from several directions at once: electric-vehicle powertrains and chargers, renewable-energy inverters, energy-storage systems, industrial automation, radar and sensing, and data-center equipment. These applications need components that survive electrical, thermal and lifetime stresses, not merely parts that can be assembled cheaply.
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How the major companies are localizing
TDK: factories plus materials and magnetic-product design
TDK operates six Indian production units. Its Nashik facility makes film capacitors, with more than half of that output exported. Ferrite cores are produced in Kalyani, Manesar and Sonepat.
The company’s localization extends into inputs and engineering. TDK conducts local research on films and ferrite materials, prepares ferrite powder in India, collaborates with IIT Madras on student incubators and startups, and is setting up design laboratories for magnetic products. That combination gives customers a potential path from local production to application support rather than a purely transactional supply relationship.
Gagan Bansal, president of TDK India, described the country as “not just a sales location” but a manufacturing, venture-investment, incubation, design and collaboration opportunity (EE Times, 2025).
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Murata: Chennai MLCC production and customer response
Murata began multilayer ceramic capacitor (MLCC) operations in Chennai earlier in 2025 and broke ground for a new factory. The stated objective is faster customer response while preserving the company’s global standards.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsMurata is also targeting mobility, industrial and data-center applications, including radar modules and piezoelectric sensing. Its Chennai logistics and support functions are intended to operate as part of the company’s wider system, rather than as an isolated local sales office. Takeshi Hashimoto, Murata’s managing director, called those functions “an extension of our global system” (EE Times, 2025).
JJMicroelectronics: distribution first, deeper value-add under consideration
JJMicroelectronics focuses on battery-management, surge-protection and power-conversion components. Its Indian route to market currently uses four distributors: Millennium Semiconductors, Componix India, Elektronika Sales and Rabyte India.
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The company is exploring deeper partnerships, closer supply-chain relationships and possible local value-add activities as demand develops. It is also working on compact assemblies that combine rectifiers, MOSFETs and protection devices for electric-vehicle and industrial-control systems.
Kok Cheong (KC) Wong, vice president of global sales and marketing at JJMicroelectronics, said localization is “as much about engineering collaboration as physical manufacturing,” with local customization balanced against global economies of scale (EE Times, 2025).
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What each company contributes
| Company | Primary components | Applications highlighted | Localization depth | Engineering and customer reach |
|---|---|---|---|---|
| TDK | Film capacitors, ferrite cores, magnetic components and sensors | EV powertrains, chargers, inverters, industrial automation and energy storage | Multiple production units, materials research, ferrite-powder preparation, design labs and university/startup collaboration | Local manufacturing and research, with more than half of Nashik film-capacitor output exported |
| Murata Manufacturing | MLCCs, radar modules and piezoelectric sensing components | Mobility, industrial equipment and data centers | Chennai MLCC operations and a new factory under development; logistics and support integrated with its global system | Faster local customer response while maintaining global standards |
| JJMicroelectronics | Battery-management, surge-protection and power-conversion devices; compact power assemblies | EV and industrial-control systems | Indian distribution today, with deeper partnerships and local value-add being explored | Engineering collaboration and four named Indian distributors |
Why reliability will determine whether localization succeeds
Component categories that look interchangeable on a bill of materials often are not. A part for an EV inverter, a renewable-energy converter or a data-center power system must be selected for its electrical and physical operating envelope.
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- Electrical stress: voltage rating, capacitance or power-handling capability, ripple current and transient behavior must match the design.
- Thermal load: temperature range, heat dissipation and aging behavior affect service life.
- Lifetime: automotive, energy-storage and industrial equipment can require long operating periods and documented reliability.
- Package constraints: board area, mounting method, vibration exposure and insulation distances influence whether a locally sourced part is a drop-in replacement.
- Qualification: customers need traceability, consistent lots, testing and a vendor ecosystem capable of supplying the same specification repeatedly.
Murata has indicated that building a reliable vendor ecosystem for high-precision components will take time. That is a structural issue: a new factory cannot by itself provide every specialty material, machine, logistics link, calibration service or qualified secondary supplier needed for sustained output.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can approved investment become dependable local supply?
India has demonstrated strong project interest, but announcements are an input, not proof of production. The conversion from proposal to supply requires several observable steps.
- Construction and commissioning: the approved facility must be built, equipped and brought to stable production.
- Process qualification: customers must validate electrical performance, reliability and consistency for their specific products.
- Local inputs: materials, tooling, packaging and maintenance services need dependable domestic or regional sources.
- Logistics: roads, ports, warehousing and customs processes must support predictable movement of sensitive components and inputs.
- Engineering capacity: application engineers, testing specialists and supplier-quality teams must be available near customers.
- Repeat orders: production has to meet volume, quality and delivery requirements over multiple cycles, not only during a launch.
The most important unknown is therefore not the headline value of proposals but the share that reaches qualified, repeatable output. The available account does not provide an independent production-output audit, does not establish that every announced project is fully operational, and does not verify affiliate or referral terms for the named distributors.
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How buyers and observers can read future announcements
A useful announcement should identify more than a location and an investment amount. Look for evidence of:
- a named component and process, such as MLCC production, ferrite-core manufacturing or film-capacitor lines;
- the stage reached—land, construction, equipment installation, pilot production or customer qualification;
- local materials and vendor capabilities, not only imported equipment;
- test, reliability and application-engineering resources;
- capacity that is tied to identifiable EV, renewable-energy, industrial or data-center programs; and
- delivery performance over time.
This framework separates a distribution presence from assembly, materials work, full production and research-and-development capability. It also helps procurement teams judge whether a second source is genuinely available or merely planned.
For designers: what an MLCC listing must tell you
Murata’s Chennai expansion makes the multilayer ceramic capacitor (MLCC) a useful example of why specifications matter. Before substituting a marketplace component or a newly localized part, match the design’s capacitance, voltage rating, dielectric, tolerance, package and temperature characteristics. A similar-looking capacitor can behave differently under DC bias, heat, ripple or mechanical stress, so a part number and a qualified datasheet matter more than a generic category label.
The practical verdict
India is developing a layered component ecosystem: TDK is adding factories, materials work and design capability; Murata is establishing Chennai MLCC production and a new factory; and JJMicroelectronics is combining power-device products with Indian distribution while considering deeper localization. That breadth improves the odds of local supply, but reliable scale will be proven only when infrastructure, vendors, engineering teams and customer qualification catch up with the investment pipeline.
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