India–Taiwan Semiconductor Research Partnership Launched Through Academia–Industry Collaboration
A new India–Taiwan academia–industry partnership aimed at advancing semiconductor research has been formalized through a tripartite Memorandum of Understanding (MoU) between Chennai Institute of Technology (CIT), Tamil Nadu; National Formosa University (NFU), Taiwan; and Taiwan-based Air Gas Electronic Materials Enterprise Co., Ltd. (AGEM). Announced by the Taipei Economic and Cultural Center (TECC), Chennai, the collaboration will provide doctoral candidates with joint academic supervision from CIT and NFU, while AGEM will offer industrial mentorship and research support. The initiative seeks to promote advanced semiconductor research, international mobility, knowledge exchange, and stronger industry–academia engagement, helping develop globally competitive researchers and strengthening long-term cooperation between institutions in India and Taiwan.
The agreement was signed in Chennai in the presence of senior representatives from TECC, NFU, AGEM, and CIT. Speaking at the event, TECC Chennai Director General Stephen Hsu described the MoU as the first academia–industry collaboration on semiconductor research between Taiwan and Southern India and highlighted the role of students as “Ambassadors of Innovation” in deepening bilateral ties. AGEM, a key participant in the initiative, brings expertise in advanced gas purification technologies essential for semiconductor fabrication, where ultra-high purity gases are required for critical etching and deposition processes. Given Taiwan’s dominant position in global semiconductor manufacturing and India’s efforts to expand its role in the semiconductor value chain, the partnership could also be relevant for non-Indian companies seeking access to emerging semiconductor talent, research collaborations, and future supply-chain opportunities linking India’s growing semiconductor ecosystem with Taiwan’s technological expertise.
Editor’s Note: Chennai Institute of Technology, National FormosaUniversity, and Taiwan’s AGEM have signed a tripartite MoU to advance semiconductor research, combining joint doctoral supervision with industrial mentorship. Announced by TECC Chennai, this first academia–industry collaboration between Taiwan and Southern India aims to foster global talent, innovation exchange, and stronger India–Taiwan semiconductor ties.
Indian Pollution Regulator Warns Tata Electronics Plant Over Alleged Groundwater Contamination
India’s Tamil Nadu Pollution Control Board (TNPCB) has issued a warning notice to Tata Electronics over alleged groundwater contamination linked to wastewater discharge from its iPhone component manufacturing facility in Hosur, Tamil Nadu. According to the regulator, inspections conducted between December 2025 and May 2026 found that wastewater from the plant was discharged into a rainwater harvesting pond within the facility, which subsequently overflowed and allegedly contaminated groundwater in nearby agricultural lands and open wells. The notice stated that Tata had failed to implement corrective measures previously directed by the pollution board and asked the company to explain why the unit should not face closure and power disconnection. The facility manufactures back panels and other components for Apple’s iPhones and is a key part of Apple’s strategy to expand production in India.
Tata Electronics has denied any regulatory violations, stating that an independent assessment conducted by an accredited laboratory found the company to be fully compliant with environmental norms. The company said it remains committed to responsible environmental practices and has responded to the authorities. The case adds to a series of operational challenges affecting Apple’s India supply chain, including previous factory fires involving Tata and former supplier Pegatron, as well as scrutiny of labour practices at supplier Foxconn. The development may be relevant for non-Indian companies with manufacturing operations or supply-chain investments in India, as it highlights the increasing enforcement of environmental regulations and the importance of compliance, sustainability management, and community engagement in one of the world’s fastest-growing electronics manufacturing hubs.
Editor’s Note: Tamil Nadu’s Pollution Control Board has issued a warning to Tata Electronics over alleged groundwater contamination from its Hosur iPhone component plant, citing wastewater discharge into a rainwater pond that overflowed into nearby lands. Tata denies violations, citing independent lab compliance, but the case underscores rising regulatory scrutiny in India’s electronics supply chain amid past safety and labour challenges at Apple suppliers.
India Set to Reach 1.1 Billion 5G Subscriptions by 2031 as Data Consumption and Network Expansion Accelerate
India is expected to surpass 1.1 billion 5G subscriptions by the end of 2031, representing an estimated 81 percent mobile subscription penetration, according to the June 2026 edition of the Ericsson Mobility Report. The report highlights the rapid growth of 5G adoption, driven by affordable 5G-enabled devices, extensive network coverage across nearly all districts, and the continued rollout of 5G Fixed Wireless Access (FWA) services. India had 430 million 5G subscriptions at the end of 2025, accounting for 35 percent of total mobile subscriptions, while 4G subscriptions are projected to decline significantly as users migrate to next-generation networks. The country also remains the global leader in mobile data consumption per smartphone, with average monthly usage expected to rise from 37 GB currently to around 70 GB by 2031. Ericsson noted that India’s expanding 5G infrastructure is supporting digital inclusion, innovation, governance, and the development of advanced use cases such as network slicing-based differentiated connectivity services.
Globally, 5G subscriptions crossed the three-billion mark in the first quarter of 2026 and are forecast to exceed 6.4 billion by 2031. The report highlights growing deployment of 5G Standalone (SA) networks, increasing commercialization of network slicing services, and strong growth in Fixed Wireless Access offerings. Network traffic continued to expand rapidly, driven by user-generated content, cloud applications, and increasing uplink demand, while industry attention is also turning toward 6G technologies, with initial specifications expected by 2028–2029 and commercial launches around 2030. For non-Indian companies, India’s accelerating 5G adoption presents significant opportunities across telecom equipment, semiconductors, smartphones, cloud services, AI infrastructure, data centres, network software, and digital applications. The scale of India’s projected subscriber base and data consumption growth is likely to make the country one of the world’s most important markets for next-generation connectivity technologies and related investments.
Editor’s Note: India is projected to reach 1.1 billion 5G subscriptions by 2031, covering 81% of mobile users, driven by affordable devices, widespread coverage, and rising data consumption expected to hit 70 GB per smartphone monthly. Globally, 5G subscriptions are forecast to exceed 6.4 billion by 2031, with India’s scale positioning it as a critical market for telecom, cloud, AI, and next‑generation connectivity investments.
India Sees $770 Million Capital Outflow as Global Investors Shift Toward AI-Focused Markets
India recorded net capital outflows of approximately $770 million during the latest week as global investors continued reallocating funds toward select artificial intelligence (AI)-linked investment opportunities, according to data cited by Elara Capital’s Global Liquidity Tracker. The report noted that the broader AI investment theme is showing signs of moderation after a strong rally that began in 2025, prompting investors to reassess positions across global markets. Global Emerging Market (GEM) funds, which had attracted investment through AI-related exposure in markets such as Taiwan and South Korea, registered six consecutive weeks of outflows totaling $10 billion. India and China remained among the markets experiencing persistent redemptions, with focused funds accounting for a significant portion of India’s weekly outflows. Despite the withdrawals, the report observed that U.S. technology-focused funds attracted a record $9 billion of inflows during the recent market correction, indicating continued investor confidence in core AI beneficiaries.
The report also highlighted that foreign investors continued to withdraw funds from several emerging markets, including Taiwan, South Korea, Brazil, and Mexico, suggesting a broader repositioning of portfolios rather than a shift specific to India. At the same time, domestic investors in Taiwan and South Korea increased purchases during the market pullback, reflecting confidence in long-term AI-related opportunities. According to the analysis, India’s relative performance compared with broader emerging market funds has fallen to historic lows, a trend that has previously coincided with major turning points in market performance. For non-Indian companies, the development is relevant because it underscores how AI-driven investment trends are reshaping global capital allocation. Firms operating in semiconductors, data centres, cloud computing, AI infrastructure, and advanced technology sectors may continue to attract investor interest, while companies evaluating expansion into India should note that current capital outflows appear linked more to global portfolio rotation toward AI-focused assets than to any fundamental deterioration in India’s economic outlook.
Editor’s Note: India saw net capital outflows of about $770 million last week as global investors rotated funds toward AI‑linked assets, with GEM funds recording $10 billion in six weeks of withdrawals. Despite India and China facing persistent redemptions, U.S. tech funds drew record inflows, underscoring how AI investment trends are reshaping global capital allocation rather than reflecting fundamental weakness in India’s economy.
Indian Infrastructure Firms Emerge as Indirect Winners of Global AI Investment Boom
While India has largely been bypassed by the global AI stock market rally, a growing number of Indian industrial and infrastructure companies are benefiting from the massive capital expenditure being directed toward AI data centres, power systems, and digital connectivity networks worldwide. Foreign investors have withdrawn nearly $26.4 billion from Indian equities in 2026, contributing to India’s decline in global market-cap rankings and a reduction in its weighting within the MSCI Emerging Markets Index. However, analysts increasingly argue that India’s AI opportunity lies not in producing leading AI chipmakers or software giants, but in supplying the infrastructure and components that support the global AI ecosystem. Fund managers and analysts describe this as a “picks-and-shovels” strategy, encompassing sectors such as electricity, cooling systems, optical connectivity, data centres, and industrial equipment. Supply constraints and long lead times for critical components have further strengthened the outlook for companies serving this segment, with many orders expected to translate into revenues between 2027 and 2029.
Several Indian companies have emerged as notable beneficiaries of this trend. Sterlite Technologies has secured a multi-year contract worth approximately $1.1 billion from a U.S.-based hyperscaler to supply optical connectivity products for AI data centres, while HFCL has seen strong growth in exports and fibre-optic demand driven by global data centre expansion. Meanwhile, MTAR Technologies is benefiting from rising demand for alternative power solutions used in AI facilities through its role as a key supplier to Bloom Energy’s fuel-cell systems. These developments suggest that India is becoming increasingly integrated into the global AI infrastructure supply chain despite not being a major producer of AI chips. For non-Indian companies, the trend highlights potential opportunities for sourcing, partnerships, and supply-chain diversification in areas such as optical networking, connectivity equipment, power systems, advanced manufacturing, and data centre infrastructure, as Indian firms strengthen their position as suppliers to AI projects across North America and other global markets.
Editor’s Note: Foreign investors have withdrawn $26.4 billion from Indian equities in 2026, reflecting India’s limited participation in the global AI stock rally but growing opportunities in supplying infrastructure for AI data centres, power systems, and connectivity. Companies like Sterlite Technologies, HFCL, and MTAR Technologies are emerging as key suppliers to global AI projects, positioning India within the “picks‑and‑shovels” segment of the AI ecosystem.
D-Link India Gains Attention as Data Centre, AI and 5G Demand Strengthen Dividend Outlook
D-Link (India), the Indian subsidiary of a Taiwan-based networking equipment provider, is emerging as a notable beneficiary of India’s expanding digital infrastructure landscape, supported by structural growth drivers including data centres, artificial intelligence (AI), 5G deployment, and the government’s Make in India initiative. The company sources more than 70% of its products locally through partnerships with over 30 manufacturing units and supplies a broad range of networking solutions, including routers, switches, structured cabling, wireless systems, and surveillance equipment. Revenue rose 13.2% year-on-year to ₹1,566 crore in FY26, while the company maintained strong profitability and capital efficiency, reporting a return on equity of 22.9% and a return on capital employed of 29.2%. Despite higher input costs affecting profit growth, D-Link continues to benefit from growing demand for networking infrastructure as India expands its digital and connectivity capabilities.
The company has also attracted attention for its shareholder returns, increasing its dividend payout consistently over the past five years and distributing ₹33.5 per share in FY26, including a special dividend. Supported by more than ₹200 crore in liquidity, a near debt-free balance sheet, and reserves that have grown to nearly ₹500 crore, D-Link has maintained a strong capacity to reward shareholders while continuing to invest in growth opportunities. The company’s dividend distribution policy provides additional support for future payouts by allowing excess reserves to be returned to shareholders. For non-Indian companies, the development highlights India’s growing importance as a manufacturing and distribution hub for networking and connectivity equipment. Firms involved in data centres, telecom infrastructure, AI deployment, cloud computing, and digital networking may find opportunities for partnerships, sourcing, and market expansion as demand for advanced connectivity solutions continues to increase across India and the broader South Asian region.
Editor’s Note: D-Link (India), the subsidiary of Taiwan’s networking equipment provider, grew revenues 13.2% to ₹1,566 crore in FY26 while maintaining strong profitability, supported by India’s expanding digital infrastructure and Make in India initiative. With over 70% local sourcing, rising demand for connectivity solutions, and consistent dividend payouts backed by a debt‑free balance sheet, the company is positioned as a key player in India’s networking and data centre ecosystem.