India Urged to Forge Partnerships with Taiwan and Japan to Boost Semiconductor Ecosystem: Report
India should deepen its collaborations with Taiwan and Japan to strengthen its semiconductor industry, according to a report by Elara Securities. The report notes Taiwan’s dominance in global semiconductor manufacturing, with 78% of the world’s fab production and over 312 Taiwanese firms leading the sector. However, despite India’s government incentives, Taiwanese semiconductor giants like TSMC have shown little interest in investing in the country, partly due to geopolitical tensions. Taiwan’s companies are instead focusing on expanding in the U.S., Japan, and Europe, while Japan is training Indian workers in semiconductor technologies.
The report highlights the recent partnership between Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) to build a 28-nanometer fab plant as a positive step for India’s fledgling semiconductor ecosystem. It also calls for India to improve its infrastructure, intellectual property protection, and regulatory framework to attract global investments. With domestic demand for semiconductor chips expected to exceed $100 billion by 2030, India has the potential to position itself as a non-China alternative amid shifting global trade dynamics.
Editor’s Note: India is encouraged to strengthen its semiconductor industry by partnering with Taiwan and Japan, as highlighted in a report by Elara Securities. While Taiwan dominates global manufacturing, companies like TSMC have been hesitant to invest in India due to geopolitical issues, focusing instead on the U.S. and Europe. However, India’s recent collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation represents a promising step forward, and the country must enhance its infrastructure and regulatory framework to attract more global investments.
India’s GCC Count Reaches 1,700 in FY24, Revenue Surges 40% to $64.6 Billion: Nasscom-Zinnov Report
The number of global capability centres (GCCs) in India rose to 1,700 by the end of fiscal year 2024, generating $64.6 billion in export revenue, a 40% increase from $46 billion in FY23, according to a Nasscom-Zinnov report. The GCC sector now employs over 1.9 million people, up from 1.66 million in the previous fiscal year. The report highlights India as the “GCC Capital of the World,” with 17% of the global technology capability centres based in the country, and projects that by 2030, the sector’s revenue could grow to $99-105 billion with a workforce of up to 2.8 million.
While large enterprises initially drove the growth of GCCs, mid-market enterprises and global unicorns have increasingly set up centres in India. Around 40 global unicorns now maintain GCCs in the country. Additionally, more than 220 GCC units are located in Tier-II and Tier-III cities like Ahmedabad, Kochi, and Coimbatore. The report also emphasizes the growing role of women in leadership, with over 1,100 women leaders in global roles within India-based GCCs. The GCC ecosystem is also becoming key in fostering innovation, sustainability, and localized market solutions.
Editor’s Note: India’s global capability centres (GCCs) reached 1,700 by the end of fiscal year 2024, generating $64.6 billion in export revenue—an impressive 40% increase from the previous year. With a growing workforce and a notable presence of global unicorns and mid-market enterprises, India is positioned as the “GCC Capital of the World,” anticipating revenue growth to $99-105 billion by 2030.
Foxconn-HCL Joint Venture to Set Up Semiconductor Assembly Unit in Uttar Pradesh
Taiwan’s Foxconn Technology Group and India’s HCL Group are planning to establish an outsourced semiconductor assembly and testing (OSAT) unit in Uttar Pradesh, according to a report by Livemint. Foxconn will hold a 40% stake in the joint venture, with an investment of $37.2 million. The companies aim to strengthen India’s semiconductor ecosystem, with Foxconn deploying its build-operate-localize (BOL) model to support local communities. The unit is expected to be located near the upcoming Jewar airport in Noida, with state authorities already allotting 30 acres of land for the project.
The venture, which is still in the early stages with a non-binding memorandum of understanding, could mark Uttar Pradesh’s first semiconductor project, pending central government approval. The location was chosen due to HCL’s strong presence in Noida, providing the company with a home base advantage. This development comes amid increasing interest in India’s semiconductor sector, with the government receiving nine proposals for semiconductor fabs and OSAT units following Micron Technology’s $825 million investment in the country.
Editor’s Note: Foxconn Technology Group and India’s HCL Group are planning to establish an outsourced semiconductor assembly and testing (OSAT) unit in Uttar Pradesh, with Foxconn holding a 40% stake and investing $37.2 million. Located near the upcoming Jewar airport in Noida, the venture aims to enhance India’s semiconductor ecosystem and leverage HCL’s local presence, although it is still awaiting central government approval. This initiative follows a surge in interest in India’s semiconductor sector, highlighted by multiple proposals for semiconductor fabs and OSAT units after Micron Technology’s significant investment.
Yotta, Nasscom, and Telangana AI Mission Launch Shambho Accelerator for Cloud & AI Startups
Yotta Data Services, in collaboration with Nasscom AI and the Telangana AI Mission, has launched the Shambho Accelerator Program to support Indian startups specializing in cloud and AI technologies. The program will provide selected startups with access to up to $200,000 in credits for Shakti Cloud, India’s fastest AI-HPC supercomputer, along with mentorship, technical support, and business networking opportunities. By offering access to state-of-the-art AI infrastructure and training, Yotta aims to empower startups to develop innovative solutions in fields such as cloud computing, data science, and high-performance computing.
Sunil Gupta, Co-founder & CEO of Yotta Data Services, highlighted that the initiative is part of Yotta’s mission to democratize supercomputing for Indian startups, enhancing India’s AI innovation and contributing to the nation’s $5 trillion economy goal. Sangeeta Gupta, Senior VP at Nasscom, emphasized the importance of programs like Shambho in equipping AI startups with the resources needed to succeed in the rapidly growing AI sector. The accelerator also aligns with India’s growing reputation as a global research and development hub, particularly in emerging technologies such as AI, blockchain, IoT, and robotics.
Editor’s Note: Yotta Data Services, in partnership with Nasscom AI and the Telangana AI Mission, has launched the Shambho Accelerator Program to support Indian startups in cloud and AI technologies, offering up to $200,000 in credits for access to advanced AI infrastructure. This initiative aims to democratize supercomputing for startups and bolster India’s position as a global hub for research and development in emerging technologies, contributing to the nation’s $5 trillion economy goal.
Indian Scientists Develop ‘Brain on a Chip’ Technology, Paving Way for AI Revolution
Researchers at the Indian Institute of Science (IISc) have developed a groundbreaking “brain on a chip” technology that mimics the human brain’s ability to store and process data, a leap forward in neuromorphic computing. Capable of handling 16,500 states within a molecular film, the new technology could dramatically improve AI hardware, bringing complex tasks like training large language models (LLMs) to personal devices with greater energy efficiency. The research, led by Sreetosh Goswami from IISc’s Centre for Nano Science and Engineering, in collaboration with Texas A&M University and the University of Limerick, was published in Nature. This system could address key challenges in AI development, such as hardware limitations and energy inefficiency.
The breakthrough is significant for India’s tech landscape, with Prof Navakanta Bhat emphasizing its potential impact on the India Semiconductor Mission and national technological leadership. The IISc team is now working on creating an integrated neuromorphic chip, with plans to translate the innovation into a system-on-a-chip for industrial and consumer applications. Supported by the Ministry of Electronics and Information Technology, the fully homegrown effort could position India as a leader in AI hardware development on the global stage.
Editor’s Note: Researchers at the Indian Institute of Science (IISc) have developed innovative “brain on a chip” technology that mimics human brain functions, potentially revolutionizing AI hardware with enhanced energy efficiency and the ability to handle complex tasks like training large language models on personal devices. This significant advancement, supported by the Ministry of Electronics and Information Technology, positions India to play a pivotal role in AI hardware development and bolsters the country’s aspirations within the India Semiconductor Mission.
NXP Semiconductors to Invest Over $1 Billion in India, Doubling R&D Efforts
NXP Semiconductors announced plans to invest more than $1 billion in India, significantly boosting its research and development efforts in the country. Speaking at the Semicon India conference near New Delhi, CEO Kurt Sievers said the Dutch company would double its R&D initiatives in the coming years. With four semiconductor design centres and 3,000 employees in India, NXP is in talks with industries such as automotive to expand its footprint in the country, as India looks to strengthen its presence in the global semiconductor industry.
India, aiming to rival global chipmaking powerhouses like Taiwan, has allocated $10 billion to foster its semiconductor ecosystem. Prime Minister Narendra Modi emphasized the country’s growing role, highlighting that India contributes 20% of the global chip design talent and is preparing a semiconductor workforce of 85,000 professionals. Major players like Nvidia, AMD, and Micron have also expanded their presence in India, further underscoring the nation’s rising importance in the global semiconductor landscape.
Editor’s Note: NXP Semiconductors plans to invest over $1 billion in India, significantly enhancing its research and development efforts while doubling its initiatives in the coming years. This investment aligns with India’s ambition to strengthen its semiconductor ecosystem, with the government allocating $10 billion to compete with global chipmaking leaders and highlighting the country’s contribution of 20% to global chip design talent.
Tata Electronics Partners with Tokyo Electron to Boost India’s First Semiconductor Fab
Tata Electronics has signed a Memorandum of Understanding (MoU) with Japanese chipmaking equipment manufacturer Tokyo Electron (TEL) to advance India’s semiconductor ecosystem. The collaboration focuses on front-end fabrication and back-end packaging technologies for Tata’s semiconductor fab in Dholera, Gujarat, and its assembly and testing facility in Jagiroad, Assam. The partnership will also involve workforce training on TEL equipment and support ongoing R&D initiatives, positioning India to meet global demand for semiconductor technologies in key sectors such as autonomous mobility, green energy, and AI.
With a Rs 91,000 crore investment, Tata Electronics’ Dholera facility aims to produce 50,000 wafers per month by December 2026. Additionally, the Rs 27,000 crore assembly and testing facility in Assam, expected to begin operations by mid-2025, will be India’s first semiconductor unit in the Northeast. Both projects are set to create over 27,000 jobs, contributing to India’s strategic goal of becoming a global semiconductor manufacturing hub.
Editor’s Note: Tata Electronics has partnered with Tokyo Electron to enhance India’s semiconductor ecosystem, focusing on front-end fabrication and back-end packaging technologies for its upcoming semiconductor fab in Dholera, Gujarat. This collaboration, which includes workforce training and R&D support, aims to produce 50,000 wafers per month by December 2026, contributing to Tata’s strategic investments of Rs 91,000 crore and Rs 27,000 crore for facilities in Dholera and Assam, respectively, while creating over 27,000 jobs.
Government Streamlines Mergers for Overseas Startups into Indian Arms; Nazara Acquires Stake in Stan for $2.2 Million
The Indian government has fast-tracked the approval process for overseas-headquartered startups merging with their Indian subsidiaries by eliminating the need for National Company Law Tribunal (NCLT) clearance. This move will simplify the transition for Indian startups based abroad seeking to move back to India. The Ministry of Corporate Affairs has notified the Companies (Compromises, Arrangements & Amalgamations) Amendment Rules, 2024, set to take effect on September 17, further boosting India’s startup ecosystem.
In other news, gaming company Nazara Technologies has acquired a 15.86% stake in blockchain-based esports startup Stan for $2.2 million through a secondary transaction. Nazara’s CEO Nitish Mittersain said the investment aligns with their vision to lead in the growing esports space. Stan had previously raised $2.7 million from investors earlier this year, cementing its position as a key player in mobile-first gaming and fan engagement.
Editor’s Note: The Indian government has streamlined the merger process for overseas startups with their Indian arms by removing the requirement for National Company Law Tribunal (NCLT) approval, effective September 17, 2024, thereby facilitating smoother transitions for startups relocating to India. In a related development, Nazara Technologies acquired a 15.86% stake in blockchain-based esports startup Stan for $2.2 million, aligning with its strategy to strengthen its presence in the growing esports sector.
CCI Introduces New Rules for Digital Mergers and Acquisitions in India
Effective from September 10, mergers and acquisitions involving digital firms with substantial operations in India must now seek approval from the Competition Commission of India (CCI). Under the new CCI (Combinations) Regulations, 2024, deals surpassing ₹2,000 crore or involving firms with at least 10% of global users or gross merchandise value in India will require regulatory clearance. Non-digital firms with annual gross merchandise value or turnover exceeding ₹500 crore in India will also be subject to mandatory approval, ensuring smaller transactions remain exempt from scrutiny.
The regulations, aimed at capturing significant digital sector deals that could previously evade oversight, apply to both signed and ongoing transactions. Legal experts have highlighted the need for parties to carefully assess deal values, including direct, indirect, and deferred payments made within two years of the relevant date. The new rules also reduce the review period for mergers from 210 days to 150 days, streamlining the regulatory process for businesses.
Editor’s Note: Starting September 10, the Competition Commission of India (CCI) requires approval for mergers and acquisitions involving digital firms with significant operations in the country, specifically for deals exceeding ₹2,000 crore or involving companies with at least 10% of global users or gross merchandise value in India. The new CCI (Combinations) Regulations, 2024, also apply to non-digital firms with annual gross merchandise value or turnover above ₹500 crore, ensuring that smaller transactions remain exempt from scrutiny. Additionally, these regulations streamline the review process by reducing the merger review period from 210 days to 150 days, allowing businesses to navigate regulatory requirements more efficiently.
Jabil to Invest ₹2,000 Crore in Tiruchirappalli, Expanding Apple’s Supplier Ecosystem in India
In a significant boost to India’s electronics manufacturing sector, American multinational Jabil Inc is set to invest ₹2,000 crore to establish a facility in Tiruchirappalli, Tamil Nadu. This move is expected to create 5,000 jobs and strengthen the state’s position as a leading electronics manufacturing hub. Jabil, a major supplier for Apple, Cisco, and HP, joins 14 Apple suppliers operating in India, seven of which are already based in Tamil Nadu. This investment is part of Apple’s broader strategy to ramp up production in India through key suppliers like Foxconn, Pegatron, and Tata Electronics.
Tamil Nadu has emerged as India’s top electronics exporter, with exports reaching $9.56 billion in 2023-24, largely driven by the surge in iPhone production. The state’s electronics manufacturing capacity is being further bolstered by global players adopting the China Plus One strategy, which encourages diversification outside China. With the establishment of Jabil’s new plant, the region surrounding Tiruchirappalli is expected to become Tamil Nadu’s third major electronics cluster, creating economic growth and employment opportunities across central districts.
Editor’s Note: American multinational Jabil Inc is set to invest ₹2,000 crore in Tiruchirappalli, Tamil Nadu, to establish a facility that will create 5,000 jobs and enhance the region’s status as a key electronics manufacturing hub. As a major supplier for Apple, Jabil joins a growing list of 14 Apple suppliers in India, seven of which are already based in Tamil Nadu, supporting Apple’s strategy to increase production in the country. This investment aligns with Tamil Nadu’s emergence as India’s top electronics exporter, with a focus on diversifying manufacturing outside China, and will likely transform the area into the state’s third major electronics cluster.