Weekly News Updates: Apr. 30 – May. 6

Telangana Unveils 1,000-Acre Electronic City to Boost Manufacturing and Investment; Taiwanese Partnerships Strengthen India's Electronics Manufacturing Amid Global Trade Shifts; Dixon Technologies and Inventec Forge JV to Make India a Global IT Hardware Hub; Optiemus Partners with Taiwan’s ASRock to Manufacture Motherboards in India; Optiemus Unmanned Systems and Taiwan’s Avix Partner to Build High-Performance Drone Components in India; Adani Pauses $10 Billion Chip Venture with Israel’s Tower Semiconductor Amid Market Uncertainty

Telangana Unveils 1,000-Acre Electronic City to Boost Manufacturing and Investment

As part of its Future City strategy, the Telangana government has announced plans to develop a 1,000-acre Electronic City (E-City), aiming to position the state as a major hub for electronics manufacturing in India. The announcement was made by IT and Industries Minister D. Sridhar Babu during a meeting with Taiwan-based Sera Networks and Hyderabad’s LCGC Resolute Group, who have jointly committed Rs 300 crore for a 10-acre manufacturing facility to produce 5G telecom equipment, servers, and multi-layer networking systems. This facility is expected to generate approximately 2,500 jobs, contributing to the state’s industrial growth and employment targets.

To attract and facilitate industrial investments, the government is forming a special task force to streamline processes and eliminate bureaucratic hurdles. The E-City is envisioned as an integrated ecosystem combining investment, production, and innovation, particularly encouraging businesses to set up in tier-II and tier-III cities with added incentives. For non-Indian companies, this initiative represents a strategic opportunity to enter or expand in one of the world’s fastest-growing electronics markets, leveraging a supportive policy environment and a robust manufacturing base.

https://timesofindia.indiatimes.com/city/hyderabad/telangana-govt-to-set-up-1000-acre-electronic-city-as-part-of-future-city/articleshow/120857223.cms

Editor’s Note: The Telangana government has announced a 1,000-acre Electronic City to boost electronics manufacturing and attract investment, with Taiwan’s Sera Networks and Hyderabad’s LCGC Resolute Group investing Rs 300 crore in a 10-acre 5G equipment facility expected to create 2,500 jobs. A special task force will streamline processes, while incentives aim to attract businesses to tier-II and tier-III cities, positioning the state as a key player in India’s growing electronics sector.

Taiwanese Partnerships Strengthen India’s Electronics Manufacturing Amid Global Trade Shifts

In response to shifting global trade dynamics and the Indian government’s ‘Make in India’ initiative, leading Indian electronics manufacturers Dixon Technologies and Optiemus Infracom have formed strategic partnerships with Taiwanese firms to enhance their manufacturing capabilities.Dixon Technologies has entered into a joint venture with Taiwan’s Inventec Corporation to produce notebook and desktop PCs, servers, and components in India. The venture, named Dixon IT Devices Private Limited, will see Dixon holding a 60% stake and Inventec the remaining 40%. This collaboration aims to leverage Inventec’s design expertise and global market access, aligning with India’s electronics component manufacturing scheme.

Optiemus Infracom’s subsidiary, Optiemus Electronics, has partnered with Taiwan-based ASRock Inc., one of the world’s top four motherboard manufacturers, to produce enterprise and gaming desktop motherboards in India. Production commenced in April 2025, with products expected in the domestic market starting May 2025. This partnership marks Optiemus’s expansion into the IT hardware segment, contributing to local employment and skill development. These collaborations reflect a broader trend of multinational electronics component suppliers seeking partnerships in India, driven by global trade uncertainties and the Indian government’s focus on boosting domestic manufacturing. For non-Indian companies, these developments highlight India’s growing role as a manufacturing hub and present opportunities for strategic alliances to tap into the expanding Indian market.

https://timesofindia.indiatimes.com/business/india-business/optiemus-dixon-sign-deals-with-taiwan-cos/articleshow/120778062.cms

Editor’s Note: Amid shifting global trade dynamics and the ‘Make in India’ initiative, Indian firms Dixon Technologies and Optiemus Infracom have partnered with Taiwanese companies to boost electronics manufacturing. Dixon formed a joint venture with Inventec to produce PCs and servers, while Optiemus Electronics teamed up with ASRock to manufacture enterprise and gaming motherboards in India, with production starting in April 2025. These partnerships enhance local capabilities, support employment, and underscore India’s rising importance as a global electronics manufacturing hub.

Dixon Technologies and Inventec Forge JV to Make India a Global IT Hardware Hub

In a strategic move to bolster India’s electronics manufacturing sector, Dixon Technologies has partnered with Taiwan-based Inventec Corporation—one of the world’s top five original design manufacturers (ODMs)—to form a joint venture aimed at producing notebook PCs, servers, and desktop systems domestically. Operating through Dixon IT Devices Private Limited, the venture will see Dixon hold a 60% stake and Inventec 40%. Leaders from both companies expressed strong optimism, with Dixon’s Vice Chairman Atul B. Lall highlighting the synergy of Dixon’s local manufacturing prowess and Inventec’s global engineering expertise as a catalyst for producing high-quality, innovative IT hardware aligned with India’s ‘Make in India’ initiative.

The JV, which grants both firms board representation and robust shareholder rights, comes at a time of global supply chain realignment and rising trade tensions, including fresh U.S. tariffs on Chinese imports. With Inventec’s client base including major players like HP and Dell, the partnership is expected to position India as a viable alternative manufacturing hub for global IT hardware. For non-Indian companies, this development signals a growing ecosystem of high-end electronics production in India, offering new opportunities for collaboration, investment, and sourcing from a politically stable and strategically located market.

https://indianstartupnews.com/news/indias-dixon-tech-and-taiwan-based-inventec-forms-jv-to-make-pc-products-in-india-9021650

Editor’s Note: Dixon Technologies and Taiwan’s Inventec Corporation have formed a joint venture, Dixon IT Devices Private Limited, to manufacture notebook PCs, servers, and desktop systems in India, with Dixon holding a 60% stake. This collaboration combines Dixon’s local manufacturing strength with Inventec’s global design expertise, supporting the ‘Make in India’ initiative amid global supply chain shifts and rising trade tensions. With Inventec’s major clients like HP and Dell, the JV positions India as a competitive global hub for IT hardware manufacturing and opens new avenues for international partnerships and investment.

Optiemus Partners with Taiwan’s ASRock to Manufacture Motherboards in India

Shares of Optiemus Infracom rose nearly 5% after its subsidiary, Optiemus Electronics, announced a strategic manufacturing partnership with Taiwan-based ASRock Inc., one of the world’s top four motherboard manufacturers. Production of ASRock’s enterprise and gaming desktop motherboards began in India in April 2025, with products set to hit the domestic market by May. This partnership signifies a major leap for India’s IT hardware ecosystem, with Optiemus expanding into high-end motherboard manufacturing using advanced PCB assembly capabilities, including BGA and fine-pitch components essential for AI-driven and high-performance computing systems.

According to Optiemus Group chairman Ashok Gupta, the collaboration is not only aligned with India’s push for self-reliant electronics production but also geared towards export readiness, job creation, and advanced skill development. With ASRock’s previously imported motherboards now being made in India, the move opens up new supply chain avenues. For non-Indian companies, the partnership signals a maturing Indian manufacturing sector capable of handling complex electronics, offering potential opportunities for collaboration, sourcing, or even local manufacturing in an increasingly geopolitically strategic and cost-effective market.

https://www.business-standard.com/markets/capital-market-news/optiemus-infracom-spurts-after-subsidiary-ties-up-with-taiwan-s-asrock-125042900584_1.html

Editor’s Note: Optiemus Electronics has partnered with Taiwan’s ASRock Inc. to manufacture enterprise and gaming motherboards in India, with production starting in April 2025 and domestic availability from May. This collaboration marks Optiemus’s entry into advanced IT hardware manufacturing, supporting India’s self-reliance goals while enabling export readiness, job creation, and skill development. By localizing production of previously imported motherboards, the partnership highlights India’s growing capability in complex electronics and presents new opportunities for global firms to collaborate or invest in the Indian market.

Optiemus Unmanned Systems and Taiwan’s Avix Partner to Build High-Performance Drone Components in India

Optiemus Unmanned Systems (OUS) has entered a strategic partnership with Taiwan-based Avix Technology to jointly develop and manufacture high-performance drone components in India, reinforcing the country’s “Make in India” initiative and its drive toward self-reliance in unmanned aerial vehicle (UAV) technologies. The collaboration will focus on co-developing critical drone technologies such as advanced camera systems, gimbals, and flight electronics, with the aim of building a robust and sustainable UAV manufacturing hub within the country.

This long-term partnership is expected to significantly boost India’s domestic drone capabilities, especially for high-performance applications in both defense and civilian sectors. For non-Indian companies, the tie-up signals India’s growing sophistication in drone technology and offers potential opportunities for international firms to partner with or source from India’s emerging UAV ecosystem, particularly as global demand increases and supply chains shift away from traditional manufacturing bases.

https://www.digitimes.com/news/a20250429VL204/optiemus-technology-2025-2023.html

Editor’s Note: Optiemus Unmanned Systems has partnered with Taiwan’s Avix Technology to co-develop and manufacture high-performance drone components in India, supporting the “Make in India” initiative and advancing UAV self-reliance. The collaboration will focus on critical technologies like advanced camera systems, gimbals, and flight electronics, aiming to establish a strong domestic drone manufacturing hub. This partnership enhances India’s drone capabilities for both defense and civilian use, while signaling opportunities for global firms to engage with India’s growing UAV ecosystem amid shifting supply chains.

Adani Pauses $10 Billion Chip Venture with Israel’s Tower Semiconductor Amid Market Uncertainty

Indian conglomerate Adani Group has paused its high-profile $10 billion semiconductor joint venture discussions with Israel-based Tower Semiconductor, citing strategic and commercial concerns. The proposed project, announced in September 2024 and backed by the Maharashtra state government, aimed to produce 80,000 wafers monthly and create 5,000 jobs, contributing to Prime Minister Narendra Modi’s ambition to establish India as a global chipmaking hub. However, sources familiar with the matter revealed that Adani’s internal assessment flagged concerns about limited domestic demand for semiconductors and Tower’s relatively modest financial commitment, prompting the group to shelve the plan for now.

This development follows the earlier collapse of the Vedanta-Foxconn $19.5 billion chipmaking venture and highlights the ongoing challenges India faces in building a viable semiconductor ecosystem. Despite continued momentum from projects like Tata Group’s $11 billion fabrication plant and Micron’s $2.7 billion packaging facility, India’s chip market remains nascent, with only a 6.5% global demand share compared to 54% from the U.S. and China. For non-Indian companies, Adani’s decision underscores the importance of aligning strategic investments with local market readiness and reinforces the need for robust financial and operational planning when entering India’s emerging semiconductor landscape.

https://www.reuters.com/world/india/adani-pauses-talks-with-israels-tower-10-billion-india-chip-foray-sources-say-2025-04-30/?utm_source=chatgpt.com

Editor’s Note: Adani Group has paused its $10 billion semiconductor joint venture with Israel’s Tower Semiconductor due to concerns over limited domestic demand and Tower’s modest financial commitment, despite initial plans to produce 80,000 wafers monthly and create 5,000 jobs. This move, following the collapse of the Vedanta-Foxconn venture, highlights the challenges India faces in building a strong semiconductor ecosystem, emphasizing the need for aligned strategies and market readiness for global investors.