Dixon Technologies and Inventec Form Strategic JV to Boost India’s IT Hardware Manufacturing
Dixon Technologies (India) Limited has announced the completion of its joint venture with Taiwan-based Inventec Corporation, marking a major expansion into the high-growth IT hardware segment. The new entity, Dixon IT Devices Private Limited, will focus on manufacturing notebook PCs, servers, and desktop products. Dixon holds a 60% stake through an investment of ₹20.51 crore, while Inventec holds 40% with ₹13.68 crore. This collaboration brings together Dixon’s strong domestic manufacturing base and Inventec’s global expertise as one of the world’s top five PC original design manufacturers (ODMs).
For India, the partnership strengthens supply chain resilience and aligns with the government’s “Make in India” initiative, which seeks to localize electronics manufacturing and reduce import dependence. For non-Indian companies, this move highlights India’s growing appeal as a global electronics production hub and potential partner for technology localization. As the JV ramps up operations, it may open new avenues for foreign firms looking to diversify supply chains and tap into India’s expanding IT hardware ecosystem.
Editor’s Note: Dixon Technologies and Taiwan’s Inventec have formed a joint venture—Dixon IT Devices Private Limited—to manufacture notebook PCs, servers, and desktops in India, combining Dixon’s local manufacturing strength with Inventec’s global ODM expertise. This strategic move supports India’s “Make in India” initiative and positions the country as an attractive hub for global electronics production and supply chain diversification.
India’s Chip Startups Turn to Global Foundries as Semiconductor Ecosystem Scales Up
India’s semiconductor startups are increasingly partnering with global foundries such as Taiwan’s TSMC and UMC, and South Korea’s DB Hi-Tek, as they move toward large-scale production and commercialization. Bengaluru-based Calligo Technologies, Mindgrove Technologies, and Vervesemi Microelectronics are among the emerging players leveraging overseas manufacturing capabilities while benefiting from India’s ₹76,000 crore Semiconductor Mission and its Design Linked Incentive (DLI) scheme. These initiatives, launched under the Ministry of Electronics and IT, have backed 23 chip-design firms so far, enabling startups to innovate in areas like AI processors, smart devices, and motor-control ICs. With India now the world’s second-largest hub for chip design talent, local innovation is beginning to translate into globally competitive semiconductor products.
However, challenges persist, including high capital requirements, long design cycles, and the lack of a fully developed domestic manufacturing and testing ecosystem. For non-Indian companies, the trend underscores India’s growing strategic role in the global semiconductor supply chain. As Indian startups rely on international fabs but build local design and IP capabilities, it creates new partnership opportunities for global players in foundry services, materials, and chip packaging who seek to integrate into India’s expanding semiconductor ecosystem.
Editor’s Note: India’s chip startups like Calligo, Mindgrove, and Vervesemi are tapping global foundries such as TSMC and DB Hi-Tek for production, while leveraging domestic support through the ₹76,000 crore Semiconductor Mission and DLI scheme to develop competitive innovations in AI and smart devices. Despite infrastructure challenges, India’s rise as a chip design hub opens new partnership opportunities for global players in foundry services, materials, and packaging.
India, Taiwan Seek WTO Deferment on ICT Tariff Dispute Ruling Until 2026
India and Taiwan have jointly requested the World Trade Organisation’s (WTO) dispute settlement body to defer the ruling in their ongoing case over New Delhi’s import duties on certain information and communication technology (ICT) products until April 2026, citing ongoing bilateral efforts to reach a mutually acceptable resolution. The issue, scheduled for discussion at the WTO’s Dispute Settlement Body meeting in Geneva on October 24, 2025, concerns India’s tariffs on items such as mobile phones, network equipment, and parts of telephone sets. A WTO panel had ruled in April 2023 that these duties violated global trading norms, but India has maintained that it is not bound by obligations under the Information Technology Agreement-2 (ITA-2), which it has not signed.
The deferment request, which follows similar appeals from other economies like the separate customs territory of Penghu, Kinmen and Matsu, is intended to allow continued dialogue and negotiation outside formal dispute channels. For non-Indian companies, this development signals a potentially stabilizing move in India’s ICT trade policy landscape. A negotiated settlement could provide greater predictability for global electronics and telecom manufacturers dependent on India’s growing market while reflecting the broader trend of countries preferring diplomatic trade resolutions amid a weakened WTO appellate system.
Editor’s Note: India and Taiwan have jointly asked the WTO to defer its ruling on ICT import duties until April 2026, aiming to resolve the dispute through bilateral negotiations outside formal channels. This move signals a stabilizing shift in India’s ICT trade policy and may offer greater predictability for global electronics firms amid a broader trend toward diplomatic trade resolutions.
China Files WTO Complaint Against India Over Electric Vehicle Subsidies
China has lodged a formal complaint with the World Trade Organization (WTO), alleging that India’s electric vehicle (EV) and battery subsidies provide an unfair competitive advantage to domestic manufacturers at the expense of Chinese interests. According to China’s Ministry of Commerce, the move seeks to safeguard the “legitimate rights and interests” of its industries. India currently offers among the world’s highest EV subsidies—about 46% of the vehicle price for models such as the Tata Nexon EV—through reduced GST and road tax, as well as support under the Production-Linked Incentive (PLI) scheme. Despite these incentives, EVs make up just 2% of India’s vehicle market, the lowest adoption rate among major economies.
The complaint comes as India expands its ₹2,000-crore PM eDRIVE scheme, which funds up to 80–100% of the cost for public EV charging infrastructure and extends key subsidies for e-buses, trucks, and ambulances till March 2028. For non-Indian companies, particularly global EV and battery manufacturers, this dispute highlights the growing trade tensions around green industrial policies and local subsidy frameworks. The outcome could shape future investment decisions and influence how foreign automakers and suppliers engage with India’s fast-evolving clean mobility ecosystem.
Editor’s Note: China has filed a WTO complaint against India, claiming its generous EV and battery subsidies—such as those under the PLI and PM eDRIVE schemes—unfairly favor domestic manufacturers and disadvantage Chinese firms. As India expands support for clean mobility, the dispute underscores rising trade tensions around green industrial policies and may influence global investment strategies in its EV ecosystem.
Trump Warns India Over Russian Oil Imports, Threatens Higher Tariffs
U.S. President has claimed that Indian Prime Minister assured him India would stop purchasing Russian oil, while warning that New Delhi would face “massive” tariffs if it failed to do so. Speaking to reporters aboard Air Force One, Trump said, “I spoke with Prime Minister Modi of India, and he said he’s not going to be doing the Russian oil thing.” However, India’s foreign ministry said it was not aware of any such conversation, reaffirming that its priority remains “safeguarding the interests of the Indian consumer.” Russian oil has become a key sticking point in U.S.-India trade negotiations, with Trump reportedly imposing tariffs on Indian goods partly in retaliation for continued energy imports from Moscow.
India is currently the largest buyer of seaborne Russian oil, taking advantage of discounted prices after Western sanctions curtailed Moscow’s access to global markets. While the White House has said India has halved its purchases, Indian sources suggest no visible decline yet, with refiners already placing orders through December. For non-Indian companies, the episode underscores the geopolitical volatility in global energy trade—where U.S. sanctions, Russian supply dynamics, and India’s energy security priorities intersect. Multinational energy firms and traders will be watching closely, as any shift in India’s import strategy could ripple through global oil pricing and supply chains.
Editor’s Note: President Trump warned India of “massive” tariffs over continued Russian oil imports, claiming Prime Minister Modi assured him of a halt—though India’s foreign ministry denied any such conversation, citing consumer interests. As India remains the top buyer of seaborne Russian oil, the dispute highlights geopolitical tensions in energy trade and could impact global pricing and supply chains.
Apple Seeks Tax Law Change in India to Avoid Liability on iPhone Assembly Equipment
Apple is lobbying the Indian government to amend its Income Tax Act of 1961 to avoid being taxed for owning high-end iPhone manufacturing equipment provided to its contract manufacturers, a provision that could expose the company to billions in potential taxes. The U.S. tech giant, which has rapidly expanded its India operations through partners such as Foxconn and Tata Electronics, argues that existing rules classify foreign-owned equipment as creating a “business connection” — making its global profits partly taxable in India. In China, Apple uses a similar equipment ownership model without incurring local tax obligations. Indian officials confirmed that discussions with Apple are ongoing but said the government remains cautious, as modifying the law could weaken its sovereign taxation rights.
For non-Indian companies, the case underscores India’s complex tax landscape for foreign investors amid its push to become a global electronics manufacturing hub. How New Delhi balances Apple’s request with its fiscal priorities will set an important precedent for other multinational manufacturers considering China-plus-one expansion strategies. A favourable outcome for Apple could make India more attractive for high-value tech investments, while a rigid stance may prompt firms to reassess large-scale capital deployments involving equipment ownership models.
Editor’s Note: Apple is urging India to amend its tax law to avoid liability on iPhone assembly equipment owned by the company but used by contract manufacturers, a move that could save billions in potential taxes. The outcome of this request may set a key precedent for foreign investors navigating India’s complex tax regime and influence future tech manufacturing strategies under the China-plus-one model.
Foreign Investors Pull $30 Billion from Indian Equities Amid AI-Driven Market Repositioning
Foreign institutional investors (FIIs) have withdrawn nearly $30 billion from Indian equity markets over the past year, redirecting much of that capital to Korea and Taiwan, according to market data. Foreign portfolio investor ownership in National Stock Exchange-listed companies fell sharply from 22.2% in September 2024 to 17.3% in May 2025, while Taiwan alone attracted $15 billion in net foreign inflows during the third quarter of 2025. Analysts at HSBC say global investors are increasingly re-evaluating India’s growth outlook through the lens of AI economics, perceiving it as a potential “anti-AI play” given its heavy reliance on human labor in the IT and services sectors, which together employ around 20 million people and account for 55% of India’s GDP.
For non-Indian companies, this shift signals an evolving investment narrative where AI adoption and automation efficiency increasingly shape global capital flows. India’s relatively modest $1.25 billion AI Mission contrasts sharply with the $2 trillion global AI infrastructure investment expected by 2030, underscoring both risk and opportunity. While India’s cost-competitive human workforce remains an asset, multinational firms and investors must now weigh how the rapid rise of AI could reshape labor-intensive service industries, potentially redefining India’s role in the global digital economy.
https://slashdot.org/story/25/10/17/197245/global-investors-position-india-as-anti-ai-play
Editor’s Note: Foreign investors have pulled $30 billion from Indian equities, redirecting capital to AI-forward markets like Korea and Taiwan, amid concerns that India’s labor-heavy IT and services sectors may lag in automation. With India’s modest $1.25 billion AI Mission contrasting global trends, the shift highlights both risk and opportunity for multinational firms reassessing India’s role in the evolving digital economy.