Weekly News Updates-February 14 – February 20

Tata in talks with Taiwan to produce chips; India looking for electronic component manufacturers from Taiwan, US and South Korea; Companies urged to achieve EV charging interoperability; Taiwan signs a worker MoU with India; Commerce Ministry to provide SEZ units with incentives; FAME India scheme's Phase-II budget increased; BBK Group collaborate with Indian companies to make phones

Tata Group approaches Taiwan over its goal to produce chips in Dholera, Gujarat

According to reports, the Tata Group is looking into joint ventures with UMC Group and Powerchip Semiconductor Manufacturing Corporation, two Taiwanese chipmakers, for its projected chip manufacturing facility in Dholera, Gujarat.

Reports state that the group first intends to produce mature nodes at 65 nm (nanometer), then progressing to 48 nm and finally 28 nm, which are required for graphic processing units (GPU), consumer electronics, and the internet of things. The plant’s starting capacity is predicted to be 25,000 wafers per month, or 700–1,000 semiconductor chips every day.

With a projected sales of NT$ 222.53 billion in 2023, UMC is the second-largest foundry in the world. Conversely, PSMC ranks as the eighth largest pure play foundry globally. A $5.3 billion chip manufacturing facility in Japan was just inaugurated. In 2023, the company’s net sales were NT$3.429 billion. The headquarters of both companies are in Hsinchu, Taiwan.


Editor’s Note: The Tata Group is collaborating with Taiwanese chipmakers UMC Group and Powerchip Semiconductor Manufacturing Corporation to establish a chip manufacturing facility in Dholera, Gujarat. The plant aims to produce chips at 65 nm, 48 nm, and 28 nm nodes, catering to graphic processing units, consumer electronics, and the internet of things.

India hopes to attract manufacturers of electronic components from Taiwan, US and South Korea: MeitY sources

A new production-linked incentive (PLI) plan for electronics components is being developed by India with the goal of protecting its electronics manufacturing ecosystem from China, Thailand, and Vietnam.
According to reports, the plan aims to entice major component manufacturers fromTaiwan, the US, South Korea, Taiwan, and China—all of whom have a significant amount of their manufacturing facilities in China—to establish production plants in India.

Reports say that India wants to produce $300 billion worth of electronics by 2026, of which $18 billion may come from component sales.

Through the new PLI policy, the government hopes to import a significant amount of mobile handset components into India at a cost estimated to be approximately Rs 20,000 crore.


Editor’s Note: India is developing a production-linked incentive (PLI) plan to attract major electronics component manufacturers from Taiwan, the US, South Korea, and China. The goal is to bolster India’s electronics manufacturing ecosystem and achieve a $300 billion electronics production target by 2026, with $18 billion expected from component sales.

Companies urged by the government to achieve EV charging interoperability

To foster interoperability among battery charging standards, government representatives, especially from the Ministry of Power, have been having regular talks with companies involved in the electric vehicle (EV) industry. Senior EV sector leaders have confirmed to the fact that these discussions have been going on for a few months. Nevertheless, there are currently no formal regulations or guidelines pertaining to fast-charging stations. To encourage the construction of fast-charging infrastructure and promote the use of EVs, industry leaders suggest simplifying rules pertaining to land and power consumption and providing targeted subsidies for this infrastructure.

Fast-charging protocols like DC-001, which are mostly used for light commercial vehicles, are being gradually replaced in India by the more recent European Combined Charging System 2 (CCS-2), which is extensively utilized for both private and heavy-duty commercial cars.

Taiwan signs a worker MoU with India, viewed as a new labor source

India and Taiwan have signed a memorandum of understanding (MoU) over migrant workers, which should result in the South Asian country providing labor to the island.

According to a statement released by the labor ministry, Taiwan will choose how many Indian workers are permitted in as well as which industries they operate in. According to the statement, Bloomberg said, India has committed to hiring and training staff in accordance with Taiwan’s needs.

The statement also says that the ministry will formally inform lawmakers of the MoU and schedule additional discussions with Indian officials.


Editor’s Note: India and Taiwan have recently signed a memorandum of understanding (MoU) regarding migrant workers. This agreement is expected to allow India to provide labor to Taiwan, with the island nation having the authority to determine the number of Indian workers and their respective industries. India has committed to training and hiring staff based on Taiwan’s requirements, as per the statement released by the labor ministry.

Commerce Ministry to provide SEZ units with incentives under the RoDTEP  scheme

The Ministry of Commerce has made the decision to expand the RoDTEP scheme’s export benefits to companies operating in export-oriented units (EOUs) and special economic zones (SEZs).

On February 16, the Director General of Foreign Trade (DGFT) was informed of this decision.

The foreign trade policy may soon be amended by an official notification from the DGFT.
The rates of tax refunds under the export promotion scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), for 8,555 products, including dairy products, yarn, and marine commodities, were released by the government in August 2021.


Push for e-mobility: FAME India scheme’s Phase-II budget increased to Rs. 11500 cr

The Ministry of Heavy Industries announced that the FAME India plan Phase II’s scheme outlay has been increased from ₹10,000 crore to ₹11,500 crore in order to further promote clean mobility in the  country. 

It is officially announced that this is a fund and term limited scheme, meaning that demand incentive subsidies will be available for e-2w, e-3w, and e-4w sales through March 31, 2024, or until funds are available, whichever is earlier.


Editor’s Note: The increase in the FAME India Phase-II scheme’s budget from ₹10,000 crore to ₹11,500 crore by the Ministry of Heavy Industries is expected to have a significant impact on India’s e-mobility sector. With additional funds, the promotion of clean mobility will receive a boost, encouraging the adoption of electric two-wheelers (e-2w), three-wheelers (e-3w), and four-wheelers (e-4w). These demand incentive subsidies will be available until March 31, 2024, or until the allocated funds are exhausted. This move aims to accelerate the transition toward sustainable and eco-friendly transportation options in the country.

BBK Group joins hands with Indian companies for manufacturing of phones 

For the production of its Oppo, Vivo, and Realme smartphones, Dixon Technologies and Karbonn Group, two Indian manufacturers, are apparently collaborating with BBK Group, the largest mobile phone manufacturer in China. According to a report in the Economic Times, the business, which is eager to take advantage of the Production-Linked Incentive (PLI) plan, has been pressured to enlist local partners in accordance with Government of India regulations.

Large manufacturing facilities for Vivo and Oppo already exist in India. All of the BBK Group brands, including OnePlus, Vivo, Realme, Oppo, and iQoo, are represented by the units. The latest action is taken in spite of previous harsh measures taken by the Indian government on Chinese smartphone manufacturers.

According to the reports, Chinese smartphone companies are hesitant of investing directly in their own manufacturing facilities for capacity development due to heightened scrutiny in the last few years, which has included allegations of money laundering, income tax evasion, and customs duty evasion.


Editor’s Note: BBK Group, the leading mobile phone manufacturer in China, has partnered with Indian firms Dixon Technologies and Karbonn Group to produce Oppo, Vivo, and Realme smartphones. This collaboration aims to leverage the Indian government’s Production-Linked Incentive (PLI) scheme for phone manufacturing