New Delhi, Mar 24 (KNN) The India Cellular and Electro­nics Association (ICEA) has advised not to encourage new EMS (electronics manufacturing services) firms headquartered in China to function in India as they have the potential to dominate the supply chain.

China holds the majority share of the components in making a mobile device.

“A Chinese EMS player setting up a manufacturing unit in India should have an equity cap of 24 per cent,” suggested ICEA.

The leading organisation of mobile device and consumer electronics companies wants op­erating EMS companies in the country from China to bring down their stake below 49 per cent.

Justifying its stance, the ICEA in a presentation said the country had big global EMS players from Taiwan and the US, and home-grown players that could meet the requirements here and export, and there was no need for newer players from China.

The association wants Chinese mobile device brands ope­rating in India to assemble their phones from non-Chin­ese players and not encou­rage and nurture their firms in India.

Companies like Xiaomi use components of both Foxconn and Chinese EMS player DBG to make phones.

EMS players like Huaqin, Longcheer and Wingtech, which collectively account for 75 per cent of the smartphone shipments globally, want to play a larger role in the country.

And there is home-grown Dixon Technologies, which assembles mobile devices, TV sets, laptops, etc.  (KNN Bureau)