Shares of electronics manufacturing services (EMS) companies, including Dixon Technologies, Kaynes Technology, Syrma SGS Technology, Cyient DLM, and PG Electroplast traded higher on Thursday, July 16.
Cyient DLM share price emerged as the top gainer, surged as much as 7.40% to ₹578.35 per share. Dixon Technologies and PG Electroplast shares rose up to 5%.
Meanwhile, Kaynes Technology and Syrma SGS Technology shares also gained up to to 3% on Thursday.
Why EMS shares are rising today?
The rally followed the Union Cabinet’s approval of two major manufacturing initiatives on Wednesday, with a combined investment of nearly ₹1.9 lakh crore (about $22 billion).
The government cleared the ₹1.27 lakh crore (around $14.6 billion) Semicon 2.0 programme to strengthen India’s semiconductor design and manufacturing ecosystem, along with the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS), which aims to expand domestic production, boost exports, and increase local value addition in the mobile phone sector.
Building on the first phase of the India Semiconductor Mission, the Semicon 2.0 programme will focus on six key areas: chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging and testing, research and development, and talent development.
“The Union cabinet under the leadership of Prime Minister Narendra Modi has approved ₹1.27 lakh crore for Semicon 2.0,” Minister for Electronics and Information Technology Ashwini Vaishnaw said at a news briefing.
The government estimates that the new scheme will draw investments of nearly ₹4 lakh crore and facilitate semiconductor production worth around ₹2 lakh crore over its duration. India is also projected to export chips valued at about ₹1 lakh crore.
Vaishnaw said the initiative aims to boost the domestic manufacturing of chips that are both designed and owned by Indian companies.
Unlike the previous scheme, the new policy will offer incentives either as grants against equity or through royalty-linked funding.
The government has also reduced incentives for setting up new semiconductor facilities, lowering support from 50% to 40% for silicon fabrication plants and to 35% for other types of fabs.
Additionally, the Union Cabinet approved a ₹62,500 crore Mobile Phone Manufacturing Scheme, under which production-linked incentives (PLI) will be provided to manufacturers for five years, from FY2026-27 to FY2030-31, Vaishnaw said.
“We expect to more than double the export of mobile phones to around ₹15 lakh crore under the new scheme from around ₹7.5 lakh crore under the previous scheme,” the minister said.
Cabinet also approves the Mobile Phone Manufacturing Scheme (MPMS)
In addition to Semicon 2.0, the Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS), the National Investment Policy for Urea-2026, as well as several infrastructure and railway projects. The combined outlay for these approved initiatives amounts to ₹2,19,353 crore.
Vaishnaw said, “Seven major decisions were taken today. The first two decisions relate to a new approach to infrastructure development in Varanasi (Kashi). The third and fourth decisions are related to the approval of Semiconductor Mission 2.0 (Semicon 2.0). The fourth decision is the approval of the Mobile Phone Manufacturing Scheme. The fifth decision aims to make India self-reliant in urea production. For this, the National Investment Policy for Urea has been approved.”
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
