SEMI to Launch India Semiconductor Academy, Boosting Talent and Ecosystem Development
SEMI, the global industry association serving the semiconductor ecosystem, is spearheading efforts to establish India as a global semiconductor hub through the creation of the India Semiconductor Academy. Modeled after the successful American Semiconductor Academy, the initiative will collaborate with premier Indian technical institutes, including IITs and NITs, to bridge the gap between academia and industry. SEMI President and CEO Ajit Manocha emphasized the academy’s role in nurturing India’s vast talent pool to meet the industry’s demand for skilled professionals, ensuring a sustainable talent pipeline to drive the country’s semiconductor ambitions.
For non-Indian companies, SEMI’s initiatives present a valuable opportunity to engage with a burgeoning talent base and an evolving semiconductor ecosystem. The association’s strategic partnership with the India Electronics and Semiconductor Association (IESA) and its global expertise aim to attract investments and foster innovation. SEMI’s neutral networking platform, which connects 1.5 million industry players annually, could facilitate collaborations and partnerships, making India an attractive destination for global semiconductor giants to expand operations and capitalize on the country’s growth potential.
https://www.digitimes.com/news/a20241225VL205/iesa-india-semi-talent.html
Editor’s Note: SEMI is launching the India Semiconductor Academy to help establish India as a global semiconductor hub, partnering with top Indian institutes like IITs and NITs to bridge the talent gap. This initiative offers foreign companies a unique opportunity to tap into India’s growing pool of skilled professionals and its evolving semiconductor ecosystem. With SEMI’s global network and strategic collaboration with IESA, India is poised to attract investments, fostering innovation and making it a key destination for international semiconductor players.
Foxconn Completes $230 Million Housing Facility for Tamil Nadu Workers
Taiwanese electronics giant Foxconn has completed its $230 million (INR 1,965.4 crore) project to build housing facilities for its workforce in Sriperumbudur, Tamil Nadu. Spread across 20 acres, the facility includes six 10-story residential blocks and two utility blocks, accommodating 18,000 beds. The dorms are designed to enhance the convenience and well-being of the predominantly female workforce, offering proximity to the production site along with recreational facilities such as cricket, badminton, basketball, and volleyball courts. Additionally, a subsidized canteen and a grocery store have been established for workers’ daily needs.
This development aligns with Foxconn’s broader strategy of shifting a significant portion of iPhone production to India, following its earlier reliance on Zhengzhou, China. The initiative also reflects Apple and Foxconn’s commitment to expanding operations in India, as the country now contributes 12-14% of global iPhone production. With plans to increase this to 32% by 2026-27, the housing facility underscores Foxconn’s focus on creating a supportive ecosystem for its workforce, addressing earlier controversies regarding recruitment practices, and meeting the growing demand for locally manufactured Apple devices.
https://inc42.com/buzz/foxconn-completes-230-mn-housing-project-for-workers-in-tn
Editor’s Note: Foxconn has completed a $230 million housing facility in Tamil Nadu, providing 18,000 beds and recreational amenities for its workforce, supporting its expanding production operations in India. This initiative strengthens the Taiwan-India partnership, highlighting Foxconn’s role in deepening economic ties while advancing India’s growing importance in global iPhone production.
India Adopts Liberal Laptop and Tablet Import Policy for 2025, Boosts Local Manufacturing Push
The Indian government has extended its liberal import policy for laptops and tablets throughout 2025, aiming to prevent supply disruptions and support local manufacturing growth. Import authorizations valid for the full year ensure flexibility, with a mid-year review planned to address potential demand-supply gaps. Gradual reductions in imports, targeting a 5% annual decrease, are set to coincide with an increase in local production, with all major brands expected to shift manufacturing operations to India by late 2025. This approach is part of India’s broader strategy to establish a robust domestic manufacturing ecosystem while maintaining oversight through an import management system introduced in 2024.
This policy presents both opportunities and challenges for international companies. The extended import timeline allows global players to adapt their operations to align with India’s push for domestic production. However, major tech firms like Apple, Dell, and HP, which have previously expressed concerns about potential supply chain disruptions, will need to manage India’s shifting regulatory framework carefully. The move toward increased local manufacturing may require substantial investment in Indian facilities, positioning the country as a potential global hub for IT hardware production.
Editor’s Note: India has extended its liberal import policy for laptops and tablets through 2025, allowing flexibility for international brands while encouraging local manufacturing growth. The policy includes gradual import reductions alongside a rise in domestic production, with major global companies expected to shift operations to India by late 2025. While offering opportunities for increased investment, the policy also poses challenges for tech firms navigating India’s evolving regulatory landscape. Taiwanese companies, such as Acer and Asus, will need to adapt by ramping up local manufacturing to align with India’s long-term strategy, which could strengthen Taiwan-India economic ties.
ESC Urges Enhanced R&D Incentives, Proposes Extension of Design Linked Incentive Scheme
The Electronics and Computer Software Export Promotion Council (ESC) has called for a recalibration of India’s Design Linked Incentive (DLI) scheme to make it more comprehensive and impactful. During a recent interaction with Finance Minister Nirmala Sitharaman, ESC proposed extending the DLI scheme by 10 years, until 2035, citing the long gestation periods required for advancements in electronics and semiconductor design. The industry body also recommended additional funding of $20 billion for R&D in emerging technologies like AI and IoT and suggested tax holidays on sales of IP-driven products to incentivize innovation and reduce reliance on foreign patents.
These initiatives reflect India’s strong focus on building a thriving electronics and semiconductor ecosystem, creating significant opportunities for international companies. The emphasis on R&D incentives and local IP development opens avenues for global firms to engage with India’s advancing technology sector. With the country’s electronics market projected to reach $300 billion by 2025-26, aligning with these efforts could enable foreign businesses to capitalize on one of the fastest-growing markets worldwide.
Editor’s Note: The Electronics and Computer Software Export Promotion Council (ESC) has urged extending India’s Design Linked Incentive (DLI) scheme until 2035 and increasing funding for R&D in emerging technologies like AI and IoT. These efforts create significant opportunities for foreign companies to collaborate with India’s growing tech sector and tap into its expanding electronics market, projected to reach $300 billion by 2025-26.
EV Assembly Lines in Existing Factories to Qualify for Incentives Under SMEC
In a move to bolster electric vehicle (EV) manufacturing in India, the government has clarified that investments in setting up dedicated EV assembly lines within existing factory premises will qualify for incentives under the Scheme to Promote Manufacturing of Electric Passenger Cars (SMEC). This long-awaited policy clarification is expected to attract global EV makers, including those already operating in India, who had been seeking assurance on what constitutes eligible investment before committing to the scheme. The SMEC also allows automakers to initially import high-end EVs at reduced duties while they establish local production facilities and scale up operations.
This decision is particularly significant for foreign automakers eyeing India’s growing EV market. Companies with existing internal combustion engine production units can now repurpose their facilities to include EV assembly lines and avail themselves of SMEC benefits, enhancing their competitiveness. Industry insiders noted that this clarity addresses a major concern for global carmakers, potentially accelerating foreign investments and collaboration in India’s EV sector.
Editor’s Note: The Indian government has clarified that setting up EV assembly lines within existing factory premises qualifies for incentives under the SMEC, encouraging global EV makers to invest in local production. This policy provides significant opportunities for foreign automakers to repurpose their facilities for EVs, boosting competitiveness and attracting further investment in India’s growing EV market.
Electronics Industry Seeks Import Duty Cuts and Subsidies in Upcoming Budget
The electronics industry in India has urged the government to reduce import duties on key components used in mobile phone manufacturing, such as inductor coils, microphones, and printed circuit board assemblies (PCBA), in the upcoming Union Budget. Industry representatives have also called for subsidies to offset the cost of mandatory testing and certification, an extension of the 15% corporate tax waiver for manufacturing companies, a technology acquisition fund, and the creation of dedicated clusters for component manufacturing. Phone makers, in particular, have sought a reduction in the import duty on components like microphones, receivers, speakers, and flexible printed circuit assemblies from 15% to 10%, along with duty-free imports of PCBA parts, currently taxed at 2.5%.
These reforms are critical to making India competitive with manufacturing hubs like China and Vietnam, where tariffs on mobile phone inputs are significantly lower. The India Cellular and Electronics Association (ICEA) has proposed a simplified tariff structure, including duty-free imports for certain inputs and a tiered duty system for components and sub-assemblies. For non-Indian companies, these potential changes could open up new opportunities in India’s electronics sector by reducing costs for local manufacturing, thereby making the Indian market more attractive for investment and supply chain integration.
Editor’s Note: The Indian electronics industry has urged the government to reduce import duties on key components used in mobile phone manufacturing and provide subsidies for testing and certification costs in the upcoming Union Budget. They have also called for a continuation of the 15% corporate tax waiver and the creation of manufacturing clusters. For foreign companies, these proposed reforms could reduce production costs, making India a more attractive destination for investment and supply chain integration in the electronics sector.