Jefferies Raises India, Taiwan Exposure; Cuts China, Indonesia in Asia ex-Japan Portfolio
Global investment bank Jefferies has increased its allocation to India and Taiwan in its Asia Pacific ex-Japan relative-return portfolio, trimming exposure to China and Indonesia amid shifting macroeconomic conditions and divergent growth prospects across the region. In its latest strategy note, Jefferies said it raised the weightings of India and Taiwan by one percentage point each, funded by reductions in China and Indonesia. India’s recommended allocation now stands at 17 per cent, reflecting confidence in resilient domestic demand, infrastructure-led growth and strengthening corporate balance sheets, while Taiwan’s higher weighting underscores its medium-term earnings visibility.
Jefferies cited heightened uncertainty around China’s economic recovery and policy direction as a key reason for the rebalancing, while highlighting Taiwan’s strong positioning in advanced semiconductor manufacturing and sustained capital expenditure by global technology leaders. Separately, the bank adjusted its global and international long-only equity portfolios by replacing Bank Central Asia with Samsung Electronics, signalling a tilt toward large-cap technology exposure. For non-Indian companies, the shift is relevant as it points to stronger investor preference for markets and firms aligned with global supply chains, technology leadership and structural growth themes, even as allocations remain fluid and subject to ongoing macro and policy developments.
Editor’s Note: Jefferies has increased exposure to India (now 17%) and Taiwan in its Asia ex-Japan portfolio, citing India’s resilient domestic demand and infrastructure-led growth, and Taiwan’s strong earnings visibility driven by semiconductor leadership, while cutting allocations to China and Indonesia due to higher economic and policy uncertainty. The shift signals a broader investor preference for markets and companies aligned with global technology value chains, structural growth, and large-cap tech leadership.
UP Emerges as Contender for Teema Technology Park as Taiwan Eyes India Expansion
Uttar Pradesh could soon host a technology park of the Taiwan Electrical & Electronic Manufacturers’ Association (Teema), with the Yamuna Expressway Industrial Development Authority (Yeida) emerging as a key contender for the proposed Indian facility, according to people familiar with the matter. The initiative is being spearheaded by Foxconn chairman Young Liu, who also heads Teema, as part of a first-phase global plan covering India, the US, Mexico and Poland. Sources said the park is likely to be located near Foxconn’s proposed outsourced semiconductor assembly and test (OSAT) facility in the Yeida region, aligning with Teema’s strategy of building advanced smart manufacturing hubs next to Foxconn campuses. The project, led by former Foxconn India head V Lee, focuses on creating AI-integrated, ESG-oriented manufacturing clusters, with Taiwanese EPC major CTCI collaborating alongside Foxconn.
The global technology park strategy, announced in November, aims to help Taiwanese companies expand overseas amid supply chain restructuring and rising geopolitical risks, while also enabling small and medium enterprises to integrate into global value chains through the overseas presence of larger firms. While Teema is evaluating multiple Indian states, Yeida’s proximity to the upcoming Jewar airport and existing electronics infrastructure strengthens its case, especially as most Taiwanese manufacturing in India is currently concentrated in the south. For non-Indian companies, the development is relevant as it signals India’s growing role as a diversified manufacturing and transshipment hub within global electronics and semiconductor supply chains, offering new partnership, sourcing and investment opportunities beyond Taiwan-centric ecosystems.
Editor’s Note: Uttar Pradesh has emerged as a leading contender to host a Teema technology park near the Yamuna Expressway, close to Foxconn’s proposed OSAT facility, as part of Taiwan’s global strategy to build AI-enabled, ESG-focused smart manufacturing hubs outside Taiwan. The move underscores India’s rising importance as a diversified electronics and semiconductor manufacturing hub, creating new opportunities for global supply chains, partnerships, and investments beyond traditional Taiwan-centric ecosystems.
MediaTek Open to Sourcing More Chips from India as Local Semiconductor Ecosystem Grows
Fabless semiconductor major MediaTek is open to sourcing a larger share of its chips from India as the country’s semiconductor ecosystem matures, its India managing director Anku Jain said in an interview with The Economic Times. Jain said increased local consumption, scalable manufacturing and cost-effective production would make it commercially viable for the company to move more assembly or manufacturing to India. MediaTek currently commands about 45–47% of India’s smartphone chipset market, and Jain welcomed the growing number of companies setting up chip manufacturing in the country, adding that India’s decision to begin with mature nodes such as 28nm, rather than advanced 6nm or 4nm technologies, was a pragmatic approach.
MediaTek has a significant R&D footprint in India, employing over 1,000 engineers across Bengaluru and Noida, with nearly 90% of its local talent engaged in global R&D spanning hardware and software design. Jain said the company is expanding beyond smartphones into AI-driven automotive, EV and IoT solutions, working with partners such as JioThings, Tata Motors, Skoda and Kinetic Green, while also supporting the rollout of affordable 5G devices and fixed wireless access equipment. For non-Indian companies, MediaTek’s stance highlights India’s rising importance not just as a large end market but as a potential manufacturing and R&D base within global semiconductor and electronics value chains, with local fabs and suppliers expected to gradually increase value addition from the current 20–25% levels.
Editor’s Note: MediaTek is open to sourcing more chips from India as the country’s semiconductor ecosystem matures, citing growing local demand, scalable manufacturing and cost efficiencies, while endorsing India’s pragmatic focus on mature nodes like 28nm. The company’s strong R&D presence and expansion into AI, automotive, EV and IoT underline India’s rising role not just as a major market but as an emerging manufacturing and innovation hub within global semiconductor value chains.
Foxconn Hires 30,000 Workers at New Bengaluru iPhone Plant in Record Ramp-Up
Taiwan’s Hon Hai Precision Industry Co. (Foxconn) has hired nearly 30,000 workers within eight to nine months for its new iPhone assembly facility in Devanahalli near Bengaluru, marking the fastest workforce ramp-up by any factory in India, according to an Economic Times report. The 300-acre plant, which began trial production of the iPhone 16 in April–May and is now assembling the iPhone 17 Pro Max, is largely women-led, with women making up around 80% of the workforce, most of whom are first-time employees aged 19–24. More than 80% of the plant’s output is being exported, and at peak capacity next year, employment could rise to about 50,000 workers, supported by six large dormitories, with more housing under construction.
Foxconn is investing about Rs 20,000 crore in the Devanahalli project, which is expected to become India’s largest factory by both production capacity and employment once fully operational. The facility is set to surpass Foxconn’s older iPhone plant in Tamil Nadu, which employs around 41,000 workers, and is planned to eventually run up to a dozen iPhone assembly lines, compared with about four currently. The expansion is aligned with Apple’s strategy to diversify manufacturing away from China and deepen India’s role under the production-linked incentive scheme; for non-Indian companies, the scale and speed of Foxconn’s ramp-up underline India’s growing attractiveness as a high-volume, export-oriented electronics manufacturing base and a credible alternative node in global supply chains.
Editor’s Note: Foxconn has hired nearly 30,000 workers in under nine months at its new Devanahalli iPhone plant near Bengaluru—India’s fastest factory ramp-up—investing about ₹20,000 crore and already exporting over 80% of output while assembling the latest iPhone models. The rapid scale-up, aligned with Apple’s China+1 strategy, highlights India’s emergence as a high-volume, export-oriented electronics manufacturing hub and a credible alternative in global supply chains.
CESL Concludes Tender for 10,900 Electric Buses Under PM E-Drive Scheme
State-owned Convergence Energy Services Limited (CESL) on Wednesday said it has successfully concluded the tendering process for procuring 10,900 electric buses under the PM E-Drive Scheme, marking one of the largest electric bus acquisitions in India’s public transport sector. The mega tender saw strong industry participation, with 16 bidders, of which 14 were technically qualified, reflecting growing confidence in India’s electric mobility ecosystem. CESL said the discovered financial bids were competitive and lower than initial estimates, and the final rates will now be shared with participating cities, which will issue letters of award and sign concession agreements directly with selected operators.
The procurement has been executed under CESL’s aggregation-based gross cost contract (GCC) model across multiple cities and Union Territories, including Delhi, Bengaluru, Hyderabad, Ahmedabad and Surat. As per indicative allocations, Bengaluru is set to receive about 4,500 buses, Delhi 2,800, Hyderabad around 2,000, and Ahmedabad and Surat together about 1,600 buses. Under the GCC framework, private operators will own, operate and maintain the buses and charging infrastructure, while city transport bodies will pay a fixed per-kilometre fee, ensuring predictable costs and financial sustainability. For non-Indian companies, the scale of the tender underscores India’s emergence as a major market for electric bus manufacturers, charging solution providers and mobility operators, offering long-term opportunities through large, aggregated public-sector contracts and stable revenue models.
Editor’s Note: CESL has completed the tender for procuring 10,900 electric buses under the PM E-Drive Scheme—one of India’s largest public transport EV procurements—drawing strong industry participation and competitive pricing across multiple major cities. The aggregation-based GCC model highlights India’s growing attractiveness as a large, stable market for electric bus makers, charging providers and mobility operators through long-term, predictable public-sector contracts.
India’s Labour Codes 2025: A Compliance Wake-up Call for U.S. IT/ITES MNCs
India’s new consolidated Labour Codes 2025, effective from November 21, 2025, replace 29 outdated laws with a streamlined framework covering wages, social security, industrial relations and occupational safety, aimed at simplifying compliance while expanding worker protections across categories including gig and platform workers. For US IT/ITES multinationals in India, these reforms go beyond routine HR updates, requiring deep recalibration of compensation structures, payroll, workforce classification, internal governance and multistate compliance systems to align with new definitions, reporting standards and broader coverage.
The changes could increase statutory costs—such as gratuity, overtime and social security contributions—while also tightening vendor obligations and demanding stronger documentation and audit controls across operations. With implementation still unfolding alongside state-level rules and digital transition requirements, global internal auditors and corporate leaders must embed the new codes into enterprise risk frameworks to ensure robust compliance and strategic workforce governance.
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Editor’s Note: India’s Labour Codes 2025, effective November 21, consolidate 29 laws into a unified framework covering wages, social security, industrial relations and safety, significantly expanding worker protections and requiring US IT/ITES firms to overhaul compensation, payroll, workforce classification and compliance systems. The reforms may raise statutory costs and compliance complexity, making it essential for global corporates to integrate the new codes into enterprise risk, audit and governance frameworks as state-level implementati