The Andhra Pradesh government has sanctioned an Rs 856 crore incentive package for Syrma SGS, an electronics manufacturing services (EMS) company, to establish India's largest printed circuit board (PCB) facility. The decision was made during a state cabinet meeting chaired by Chief Minister N Chandrababu Naidu on Thursday, according to officials.

Syrma SGS, in collaboration with South Korea’s Shinhyup Electronics, will invest Rs 1,595 crore in the project, which will be set up on a 51:49 equity shareholding basis. The state government will provide 12.56 acres of land at a 75% subsidised rate in the Naidupeta industrial area, near Chennai, Tamil Nadu.

The facility, expected to be operational by October 2026, is projected to contribute Rs 6,200 crore to Syrma SGS’s revenue in FY2027. It will encompass single-layer and multi-layer PCB production, high-density interconnect (HDI) and flex PCB manufacturing, copper clad laminate (CCL) production, and electronics manufacturing services.

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Syrma SGS, with an FY25 turnover of Rs 3,836 crore and a market capitalisation of nearly USD 2 billion, operates 14 manufacturing units and employs over 9,000 people. PCBs, critical for electronic devices, serve as the foundation for mounting and connecting components, while CCL is a key material in PCB production.

The PCBs from this plant will cater to high-growth sectors like smart metering, healthcare, medical devices, automotive, and electric mobility. According to UnivDatos, the surge in vehicle electrification and advanced driver-assistance systems (ADAS) has boosted demand for advanced PCBs in India’s automotive industry. Features such as smart dashboards, battery management systems, infotainment, and electric vehicles (EVs) are driving the need for reliable, high-quality PCBs.

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