Foxconn–HCL unveil ‘India Chip Pvt Ltd’ OSAT venture
Taiwanese electronics manufacturing services major Foxconn and India’s HCL Group have named their semiconductor joint venture India Chip Private Limited, according to regulatory filings. Foxconn holds a 40 percent stake in the venture and has infused $37.2 million (around Rs 312 crore) so far, with a potential total investment of up to Rs 424 crore. The joint venture, first announced on October 1, 2024, confirmed in a supplementary disclosure that the entity’s name has now been finalised. Earlier, HCL had submitted the project proposal to the Uttar Pradesh government under the name Vama Sundari while seeking land allocation.
The Uttar Pradesh government’s Yamuna Expressway Industrial Development Authority has allotted about 48 acres in Sector 28, Jewar, near the upcoming Noida International Airport, for an outsourced semiconductor assembly and test (OSAT) facility focused on display driver integrated circuits used in smartphones, laptops, and automotive applications. The plant is designed to process 20,000 wafers per month, with an annual capacity of around 432 million chips, involving an estimated investment of Rs 3,706 crore and generating over 3,500 jobs. The state government has committed 60 percent capital support, along with assured power and water supply, and commercial production is expected to begin in 2027. For non-Indian companies, the project underscores India’s push to integrate into global semiconductor supply chains, creating opportunities for equipment makers, material suppliers, and downstream electronics firms seeking alternative manufacturing and packaging bases outside traditional East Asian hubs.
Editor’s Note: Foxconn and HCL have officially named their semiconductor joint venture India Chip Pvt Ltd, with Foxconn holding a 40% stake and investing up to ₹424 crore. The Uttar Pradesh government has allotted 48 acres in Jewar for a ₹3,706 crore OSAT facility, expected to start production in 2027, generating 3,500 jobs and strengthening India’s role in global semiconductor supply chains.
IIT Gandhinagar ties up with Taiwan’s NYCU, Ampak for chip R&D
Indian Institute of Technology Gandhinagar (IITGN) has strengthened its collaboration with Taiwan’s National Yang Ming Chiao Tung University (NYCU) and wireless module maker Ampak Technology Inc. to advance India–Taiwan cooperation in semiconductors and advanced communications. The partnership was reinforced during a campus visit on January 13–14 by Prof. Li-Chun Wang, Distinguished Chair Professor and Dean at NYCU, and Mr. Ming-Jer Chen, CEO of Ampak Technology, which has over two decades of experience in wireless module R&D, design, manufacturing, and technology integration. Discussions focused on academic exchange programmes, joint research initiatives, and industry-academia partnerships covering areas such as integrated circuit design, semiconductor materials, AI, machine learning, quantum computing, and wearable electronics.
Highlighting the strategic importance of semiconductors and supply-chain resilience, Prof. Wang said the collaboration between India and Taiwan should span AI, systems design, and manufacturing, combining Taiwan’s strengths in manufacturing and reliability testing with India’s capabilities in chip design and computational sciences. IITGN Director Prof. Rajat Moona said the engagement would provide students with hands-on exposure and advanced training as Gujarat emerges as a semiconductor hub, while Ampak’s CEO noted the strong potential for joint research and student mobility between India and Taiwan. For non-Indian companies, the initiative signals India’s growing integration into global semiconductor and wireless ecosystems, opening avenues for international firms in equipment, materials, design services, and advanced packaging to collaborate with Indian and Taiwanese institutions as part of a diversifying and geopolitically resilient technology supply chain.
https://indiaeducationdiary.in/iit-gandhinagar-partners-with-taiwanese-university-industry-to-boost-india-taiwan-semiconductor-partnership/
Editor’s Note: IIT Gandhinagar has partnered with Taiwan’s NYCU and Ampak Technology to boost India–Taiwan collaboration in semiconductors, AI, quantum computing, and advanced communications through joint research, academic exchanges, and industry-academia initiatives. The alliance aims to combine Taiwan’s manufacturing strengths with India’s chip design expertise, offering students hands-on training while positioning Gujarat as a semiconductor hub and integrating India into global supply chains.
India, EU seek to finalise trade deal this month
India expects negotiations on its long-sought trade agreement with the European Union to conclude this month, Trade Secretary Rajesh Agrawal said, potentially paving the way for New Delhi’s largest trade pact as it looks to diversify markets amid U.S. tariff pressures. Bilateral trade between India and the EU stood at 120 billion euros in 2024, making the bloc India’s biggest trading partner. Agrawal said both sides were “very close” to finalising the agreement and were exploring whether it could be wrapped up ahead of an India–EU summit in New Delhi later this month, to be co-chaired by European Council President Antonio Costa and European Commission President Ursula von der Leyen. Talks on a separate U.S. trade pact are continuing after negotiations collapsed last year, while India and the EU have sought to fast-track their deal since relaunching talks in 2022.
Key sticking points remain over automobiles and steel, with the EU pressing India to sharply cut import duties on cars that can exceed 100 percent, and India concerned that its steel exports could be constrained by the EU’s carbon border levy and safeguard measures. Agriculture and dairy have been excluded from negotiations, as India has ruled out opening these sectors to protect millions of small farmers, while the EU is also seeking lower tariffs on medical devices, wine, spirits and meat, along with stronger intellectual property rules. India, for its part, wants duty-free access for labour-intensive exports and faster regulatory recognition for its autos and electronics sectors. For non-Indian companies, a successful deal would signal a major reconfiguration of trade flows by opening access to India’s 1.4-billion-strong consumer market and strengthening EU–India supply chains as both sides seek to reduce dependence on China and Russia, potentially creating new opportunities for manufacturers, exporters and investors operating across Asia and Europe.
https://www.reuters.com/world/india/trade-deal-with-eu-close-says-india-trade-secretary-2026-01-15
Editor’s Note: India and the European Union are close to finalising a major trade agreement this month, potentially New Delhi’s largest pact, as both sides aim to diversify markets and strengthen supply chains ahead of an upcoming summit in New Delhi. Key sticking points include EU demands for lower car tariffs, carbon border levy and safeguard measures and stronger IP rules, while India seeks duty-free access for labour-intensive exports, with agriculture excluded, and faster regulatory recognition for its autos and electronics sectors; a successful deal could reshape trade flows and open India’s vast consumer market to European firms.
India to relax foreign investment norms for defence companies
India is preparing to significantly relax foreign investment norms in its defence sector to attract greater overseas participation and strengthen domestic manufacturing, according to government sources. The cap on foreign direct investment in defence companies holding existing licences under the automatic route—where no prior government approval is required—is set to be raised to 74 percent from 49 percent. At present, foreign investors can own up to 74 percent under the automatic route only in firms seeking new licences. The government is also considering removing a condition that allows foreign ownership beyond 74 percent only if it leads to access to “modern technology,” a clause critics have long described as vague. The proposed reforms, which could be implemented within the next few months, aim to encourage defence partners to take majority stakes in Indian ventures and expand manufacturing capacity following last year’s conflict with Pakistan.
Another rule likely to be dropped is the requirement for fully export-oriented defence manufacturers to establish domestic maintenance and support facilities, which officials say has deterred investment. Foreign defence firms such as Airbus, Lockheed Martin and Israel’s Rafael already operate in India through joint ventures or partnerships, but foreign equity inflows into the sector have remained limited at $26.5 million over the past 25 years. The move comes as India seeks a 20 percent rise in defence spending in the 2026/27 budget and targets nearly doubling domestic defence production to $33.25 billion and exports to $5.5 billion by 2029, after exports hit a record $2.6 billion in 2024/25. For non-Indian companies, the planned liberalisation could open the door to majority ownership in Indian defence firms, offering access to one of the world’s largest arms markets and positioning India as a manufacturing and export base amid rising global defence demand and shifting supply chains.
Editor’s Note: India plans to ease foreign investment rules in its defence sector by raising the automatic route cap from 49% to 74% for existing licence holders and removing restrictions tied to “modern technology,” aiming to attract greater overseas participation and expand domestic manufacturing. The reforms, expected within months, could boost defence production to $33.25 billion and exports to $5.5 billion by 2029, opening India’s arms market to majority foreign ownership and positioning the country as a global manufacturing hub.
India pushes BRICS digital currency link for cross-border payments
India’s central bank has proposed linking the official digital currencies of BRICS countries to facilitate cross-border trade and tourism payments, in a move that could gradually reduce reliance on the U.S. dollar amid rising geopolitical tensions, according to sources. The Reserve Bank of India (RBI) has recommended that the proposal be placed on the agenda of the 2026 BRICS summit, which India will host later this year. If accepted, it would mark the first formal attempt to connect the central bank digital currencies (CBDCs) of BRICS members—Brazil, Russia, India, China and South Africa. The initiative builds on a 2025 BRICS declaration calling for interoperability among members’ payment systems, and aligns with the RBI’s stated interest in linking India’s e-rupee with other nations’ digital currencies to speed up cross-border transactions, though it has said this is not aimed at promoting de-dollarisation.
All major BRICS members are currently running CBDC pilot projects, with India’s e-rupee attracting about 7 million retail users since its 2022 launch and China seeking to expand international use of the digital yuan. Officials said key challenges would include agreeing on interoperable technology, governance rules and mechanisms to manage trade imbalances, with bilateral foreign exchange swap arrangements and periodic settlements among options under discussion. The proposal comes as the bloc gains prominence amid renewed U.S. tariff threats and warnings against efforts to bypass the dollar. For non-Indian companies, especially exporters, payment service providers and fintech firms, a BRICS-linked digital currency framework could reshape regional payment infrastructure by lowering transaction costs and settlement times across emerging markets, while also introducing new regulatory and currency-risk considerations for businesses trading with BRICS economies.
https://www.trtworld.com/article/a3272009c4dc
Editor’s Note: India’s central bank has proposed linking BRICS countries’ digital currencies to enable faster cross-border trade and tourism payments, with the plan set to be discussed at the 2026 BRICS summit in New Delhi. While all members are running CBDC pilots, challenges around interoperability and governance remain, but a successful framework could lower transaction costs, reshape regional payment systems, and create new opportunities for global exporters and fintech firms.
India, Germany sign 19 deals on defense and technology
India and Germany have strengthened their strategic partnership by signing 19 agreements and joint declarations covering defense manufacturing, advanced technology, critical minerals and trade cooperation. The deals were finalised following talks between Prime Minister Narendra Modi and German Chancellor Friedrich Merz, reflecting growing trust between the two countries and a shared push to enhance economic growth, innovation and global supply-chain resilience. The agreements span defence, trade, semiconductors and emerging technologies, with both sides committing to expand co-development and co-production in defence manufacturing as well as cooperation in digitalisation, telecommunications, health and the bio-economy.
A key outcome was the launch of the India–Germany Semiconductor Ecosystem Partnership, aimed at collaboration across the full semiconductor value chain from research to manufacturing, alongside joint efforts in critical minerals covering exploration, processing, recycling and secure supply chains. Defence and security cooperation will deepen through joint production, training and military exercises, while naval engagement will expand with regular port calls and exchanges, supported by a new Track 1.5 Foreign Policy and Security Dialogue. Bilateral trade has crossed $50 billion, and Germany will allow visa-free airport transit for Indian passport holders, easing mobility. For non-Indian companies, the agreements signal expanding opportunities in defence manufacturing, semiconductors, clean-energy minerals and digital technologies, as stronger India–Germany ties could reshape supplier networks and create new partnerships within Europe–Asia industrial and technology ecosystems.
Editor’s Note: India and Germany have signed 19 agreements spanning defence, semiconductors, critical minerals, and advanced technologies, highlighting deeper cooperation in co-development, trade, and supply-chain resilience. Key outcomes include the India–Germany Semiconductor Ecosystem Partnership, more expanded defence collaboration, an eased visa transit for Indians, and new opportunities for global firms in Europe–Asia industrial networks.