Syrma SGS Technology to Set Up Manufacturing Unit in Andhra Pradesh
Chennai's Syrma SGS Technology, an electronics manufacturing services company, plans to invest Rs 1,800 crore to establish the largest multi-layer printed circuit board (PCB) and copper clad laminate (CCL) manufacturing facility in India, according to reports.
This integrated manufacturing unit is expected to be operational by 2026-27 and will likely be situated in Naidupeta, near Tirupati district, taking advantage of its proximity to Chennai, a well-known center for electronics manufacturing.
Syrma SGS is aiming to collaborate with South Korean firm Shinhyup Electronics, which will contribute its technological know-how to the project. They have submitted a request for approval under the government's production-linked incentive (PLI) scheme for components.
Shinhyup Electronics specializes in producing PCBs for automotive electronic equipment, home electronics, IT, and medical applications.
Syrma SGS is in advanced negotiations with the Andhra Pradesh government to obtain incentives such as capital subsidies, electricity duty benefits, and training incentives. A key feature of this investment is the integrated manufacturing strategy.
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In addition to creating multi-layer PCBs, Syrma SGS will also produce CCL, a crucial raw material in PCB manufacturing. This backward integration aims to lower reliance on imports and ensure a consistent, economical supply chain for advanced PCBs within India.
Furthermore, the company plans to establish a research and development center to foster new engineering innovations. The PCBs produced at this facility will cater to emerging sectors like smart metering, healthcare and medical devices, automotive, and electric mobility.
Earlier this year, Andhra Pradesh secured Rs 14,000 crore to set up India’s first private semiconductor manufacturing plant as it seeks to attract significant new investments into the region.
This venture is a collaboration between India’s Indichip Semiconductors and Japan's YITOA Micro Technology.
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The facility will be based in the Orvakal Mega Industrial Park in Kurnool district and will primarily focus on producing silicon carbide chips, which are vital for energy-efficient technologies like electric vehicles and renewable energy.