Weekly News Updates-February 21 – February 27

India's chip strategy progresses; "Korean" and "Japanese" cities will soon be in Noida; NICDC and IIT Delhi collaborate; India to lower its import taxes on electric vehicles; Acer will manufacture and export home appliances in India; Indian semiconductor development to receive a $100 million boost; HCLTech and Intel Foundry expand collaboration; Fubon Bank to open a branch in India; Innolux to begin mass production of LCD displays

India’s chip strategy progresses with proposals worth $21 billion

Following years of observation, the Indian government is now required to assess $21 billion in semiconductor proposals and allocate taxpayer funds among global chipmakers, domestic winners, or a mix of the two.

According to reports, India’s Tata Group has proposed a $8 billion chip production unit, while Israel’s Tower Semiconductor Ltd. is proposing a $9 billion plant. The sources have claimed that both projects would be located in Gujarat.

Due to significant domestic capacity development investments made by the US, China, and Japan, semiconductors have emerged as a major geopolitical battleground. With an initial budget of $10 billion, the government would pay half the cost of any projects authorized under India’s chipmaking incentive scheme.

https://www.moneycontrol.com/news/india/india-chip-strategy-makes-progress-with-21billion-in-proposals-12352251.html

Editor’s Note: India’s chip strategy is gaining momentum with $21 billion in semiconductor proposals. Notably, Tata Group proposes an $8 billion chip production unit, while Tower Semiconductor Ltd. from Israel aims to establish a $9 billion plant in Gujarat.

“Korean” and “Japanese” cities will soon be in Noida

The Yamuna Motorway Industrial Authority has designated two areas in the Gautam Buddh Nagar district as industrial cities for Korea and Japan. According to a report published on Sunday by Live Hindustan, companies from both countries will establish their industrial offices in these towns. The Korean city will be located in sector 4A of the motorway, whilst the Japanese city will be located in sector 5A. For its foreign employees, the cities will also contain residential zones.

The Jewar airport in Noida is set to be inaugurated in Noida just 10 from the location of these planned cities. It is anticipated that this will boost the two projects.

An estimated 2,544 crore will be spent on the development of the cities. Arun Vir Singh, CEO of the Yamuna Industrial creation Authority, discussed the creation of these cities and stated that companies that manufacture chips, cameras, semiconductors, and AI technology will be located in the electronic hubs.

https://www.hindustantimes.com/india-news/soon-japanese-korean-cities-to-come-up-near-jewar-airport-in-up-report-101708913330326.html

Editor’s Note: The Yamuna Motorway Industrial Authority has designated areas in Gautam Buddh Nagar district as industrial cities for Korea and Japan. Companies from both countries will establish their offices in these towns, with the Korean city in sector 4A and the Japanese city in sector 5A. The cities will also include residential zones for foreign employees, and the development is expected to boost projects in the region.

NICDC and IIT Delhi collaborate to accelerate the development of new greenfield smart city initiatives

The National Industrial Corridor Development Corporation Limited (NICDC) and the Foundation for Innovation and Technology Transfer at IIT Delhi signed a Memorandum of Understanding (MoU) on February 26 in New Delhi, marking a significant step in India’s ambitious journey to become a global manufacturing powerhouse. Under the PM GatiShakti framework, this partnership will assess the best sites for the construction of greenfield industrial smart towns around the country.

The initiative aims to anticipate India’s future industrial growth and sustainable urban development, not only build cities.

In order to develop India’s industrial infrastructure, the collaboration between NICDC and IIT Delhi is a deliberate step in the right direction. The partnership aims to identify areas that are favorable for industrial growth as well as those that have the potential to draw large investments, foster regional trade, and create a sizable number of job opportunities.

https://bnnbreaking.com/tech/pioneering-partnership-nicdc-and-iit-delhi-join-forces-to-develop-greenfield-industrial-smart-cities-in-india

VinFast emphasises Tesla’s call for India to lower its import taxes on electric vehicles

Three of the biggest electric car manufacturers in the world have revealed their plans to enter India throughout the past year. The Indian government’s response to each case has been different in terms of policy: possible changes to tax laws to allow the American company Tesla; explicit disincentives for China’s BYD; and routing of the proposal through VinFast of Vietnam, which is currently requesting subsidies comparable to those being negotiated for Tesla.

India is promoting the quick adoption of electric vehicles, emphasizing the switch from petrol and diesel to battery-electric vehicles. This is the development of the three proposals.

https://indianexpress.com/article/explained/explained-sci-tech/three-proposals-three-policy-responses-in-indias-ev-push-9182676/

Editor’s Note: Three major electric car manufacturers have expressed their intentions to enter the Indian market. While Tesla seeks tax reductions, VinFast from Vietnam is also requesting import duty cuts similar to those being negotiated for Tesla

Acer will manufacture and export home appliances in India

India has grown to be Acer’s second-largest market after the US. As a result, the business plans to boost after-sale services and venture into the made-in-India home electronics sector in addition to producing PCs, monitors, and servers locally.

The Economic Times was informed by Harish Kohli, managing director of Acer India, that the company intends to manufacture and export products, including air and water purifiers, and that AcerPure, a new company, will likely be registered in the upcoming weeks.

Acer increased its made-in-India desktop computer output when India said that import management systems would be used for computers. In addition, the company is expanding into other product categories, like servers and smart large-sized monitors.

https://www.digitimes.com/news/a20240226VL202/acer-made-in-india-home-appliances-india-pli.html#:~:text=Harish%20Kohli%2C%20managing%20director%20at,the%20coming%20weeks%20in%20India.

Editor’s Note: Acer, the Taiwanese major in laptops and PCs, is now expanding into home electronics. The company plans to manufacture and export appliances such as water purifiers, air purifiers, refrigerators, and vacuum cleaners from India. Their new venture, AcerPure, will cater to consumer needs and contribute to India’s growing electronics manufacturing ecosystem.

Indian semiconductor development to receive a $100 million boost from Taiwanese company Taisys

Taiwan-based Taisys plans to invest a substantial USD 100 million in its Indian subsidiary to support important chip design projects that will further the automotive sector. Taisys is an innovative technology business based in India that is setting the standard for connectivity and mobility solutions in the nation.

With the fourth-largest car sector in the world, India is expected to become a major contributor to GDP growth in the country. The industry is expected to grow from 7.3 percent in 2023 to an astounding 10 percent by 2035, and it is expected to reach USD 600 billion in the same period.

The automotive industry is undergoing a technology revolution that is causing changes in a number of areas, such as product development, sales, servicing, and infrastructure for charging.

https://www.manufacturingtodayindia.com/taiwanese-firm-taisys-to-inject-usd-100-million-into-indian-semiconductor-development/

Editor’s Note: Taiwan-based Taisys is injecting USD 100 million into its Indian subsidiary to advance the automotive sector. As India’s automotive industry grows rapidly, sophisticated chip design initiatives are crucial for its development.

HCLTech and Intel Foundry expand collaboration to provide customised silicon solutions

In order to improve foundry services, HCLTech is extending its long-standing partnership with Intel Foundry to jointly develop customised silicon solutions for semiconductor makers, system OEMs, and cloud service providers.

Through this partnership, which marks the beginning of a new era of innovation and excellence, HCLTech’s design experience and Intel Foundry’s innovative technology and manufacturing skills are combined to create a robust and diversified supply chain. Through the provision of a strong and welcoming semiconductor sourcing ecosystem to clients, our partnership seeks to address the growing demand for semiconductor production on a worldwide scale and satisfy their varied silicon requirements.

Fubon Bank receives approval to open a branch in India

The Financial Supervisory Commission (FSC) has given Taipei Fubon Bank Co. permission to build a branch in Mumbai, India.

Before choosing to open a branch in Mumbai, Taipei Fubon Bank, a division of Fubon Financial Holding Co., considered the present and long-term growth possibilities of the Indian market, according to a statement released by the FSC yesterday.

According to the statement, the proposed office will provide access to worldwide syndicated loans and other financing options for Taiwanese investors in India as well as local Indian companies.

https://www.taipeitimes.com/News/biz/archives/2024/02/22/2003813877

Editor’s Note: Fubon Bank has secured approval to open a branch in Mumbai, India. This move aligns with Taiwan’s New Southbound Policy, which focuses on enhancing trade and exchanges between Taiwan and countries in South and Southeast Asia.

Innolux to begin mass production of LCD displays

Following government approval, a plan by the multinational group Vedanta, which includes Taiwan-based Innolux as a technology provider, may start mass producing LCD panels in India in 18 to 24 months, according to a senior Innolux official.

In order to establish a display screen manufacturing facility in the nation at an estimated cost of USD 3–4 billion, Vedanta has brought Innolux on board as a technology provider.

Under the programme for the semiconductor and display fab ecosystem for incentives, Vedanta has filed the proposal to the Ministry of Electronics and IT (Meity).

https://www.ptinews.com/story/business/mass-production-of-lcd-displays-can-start-in-india-in-18-24-months-innolux/1303962

Editor’s Note: Innolux, in collaboration with the multinational group Vedanta, is set to commence mass production of LCD panels in India within 18 to 24 months. The project aims to establish a display screen manufacturing facility at an estimated cost of USD 3–4 billion, contributing to India’s growing semiconductor and display ecosystem.