Weekly News Updates: Jan. 8 – Jan. 14

Andhra Pradesh to Host India’s First Private Semiconductor Fab with ₹14,000 Crore Investment; India’s Automobile Industry Records 12% Growth in 2024, Driven by Two-Wheelers; Syrma SGS Partners with MSI to Manufacture Laptops in India; Foxconn Halts Chinese Worker Deployments to India Amid Equipment Delays, Threatening Apple’s Production Diversification; Geopolitical Tensions Disrupt Indian Electronics, Solar, and EV Sectors; India’s EV Market Surpasses 2 Million Sales, Industry Calls for Policy Boost

Andhra Pradesh to Host India’s First Private Semiconductor Fab with ₹14,000 Crore Investment

Indichip Semiconductors Limited, in partnership with Japan’s Yitoa Micro Technology Limited (YMTL), has signed an MoU with the Andhra Pradesh government to establish India’s first private semiconductor manufacturing facility. With an investment of over ₹14,000 crore, the silicon carbide (SiC) fab will be set up in the Orvakal Mega Industrial Hub, Kurnool. The facility will initially produce 10,000 SiC wafers per month, scaling up to 50,000 wafers within three years, aligning with India’s Aatmanirbhar Bharat vision and addressing the global demand for energy-efficient technologies in electric vehicles and renewable energy. The MoU was signed in Hyderabad by key industry leaders in the presence of government officials, including IT Minister Nara Lokesh and Industries Minister T.G. Bharath.

For global companies, this initiative signals India’s commitment to fostering a robust semiconductor ecosystem, driven by innovative policies and infrastructure. The investment provides opportunities for non-Indian firms to explore partnerships in semiconductor manufacturing, talent development, and ancillary industries. With Andhra Pradesh emerging as a hub for electronics and semiconductor production, this development underscores India’s growing relevance in the global technology supply chain.

https://www.thehindu.com/news/national/andhra-pradesh/ap-to-get-14000-crore-semiconductor-manufacturing-facility-in-orvakal-mega-industrial-hub/article69089506.ece

Editor’s Note: Andhra Pradesh will host India’s first private semiconductor fab, with Indichip Semiconductors and Japan’s Yitoa Micro Technology investing over ₹14,000 crore in the Orvakal Mega Industrial Hub. The facility, focusing on silicon carbide (SiC) wafers, will initially produce 10,000 wafers per month, scaling to 50,000 within three years. This development offers foreign companies opportunities to collaborate in India’s emerging semiconductor sector and expand into the growing electronics and renewable energy markets.

India’s Automobile Industry Records 12% Growth in 2024, Driven by Two-Wheelers

The Society of Indian Automobile Manufacturers (SIAM) reported a 12% growth in automobile dispatches from companies to dealers in 2024, buoyed by positive consumer sentiment and macroeconomic stability. Total wholesales across categories rose to 2.55 crore units, up from 2.28 crore in 2023. The growth was primarily led by the two-wheeler segment, which recorded a 14.5% increase in dispatches, reaching 1.95 crore units. Passenger vehicles (PVs) and three-wheelers also posted their highest-ever sales, with PVs growing 4% to 43 lakh units and three-wheelers expanding by 7% to 7.3 lakh units. However, commercial vehicles saw a slight dip of 3% in sales, totaling 9.5 lakh units.

For non-Indian companies, the robust growth across segments signals a thriving automobile market with opportunities for investment, collaboration, and supply chain integration. The demand for two-wheelers and passenger vehicles, coupled with a stable economic environment, highlights India’s potential as a key destination for automotive innovation and manufacturing. The performance of the October-December quarter, which marked record sales across several segments, further underscores India’s growing relevance in the global automotive industry.

https://www.businesstoday.in/auto/story/2024-reasonably-good-for-auto-industry-says-siam-dispatches-rise-12-460758-2025-01-14

Editor’s Note: India’s automobile industry saw a 12% growth in 2024, driven mainly by a 14.5% rise in two-wheeler dispatches, along with strong sales in passenger vehicles and three-wheelers. Total wholesales reached 2.55 crore units, with commercial vehicle sales slightly down. This update offers valuable insights into India’s automotive sector, highlighting key trends and growth areas to watch.

Syrma SGS Partners with MSI to Manufacture Laptops in India

Syrma SGS Technology Limited, a leading electronics systems design and manufacturing company, has announced a strategic partnership with Taiwan-based MSI to locally assemble laptops at Syrma’s state-of-the-art Chennai facility. This collaboration is part of a phased plan to localize MSI’s manufacturing in India, starting with laptop assembly, aligning with the Indian government’s “Make in India” initiative. Leveraging MSI’s technology transfer and Syrma’s scalable manufacturing expertise, the partnership aims to bring premium MSI laptops closer to Indian consumers, ensuring global competitiveness while meeting local demand.

This collaboration highlights India’s growing appeal as a manufacturing hub for global companies, backed by initiatives such as the Production Linked Incentive (PLI) scheme. Syrma SGS, with its extensive manufacturing footprint and robust IT hardware portfolio, serves over 270 customers globally and achieved consolidated revenue of Rs 3,212 crore for FY23-24. The partnership underscores India’s potential as a key market for non-Indian companies seeking high-quality manufacturing solutions while addressing local demand efficiently.

https://indianstartupnews.com/news/taiwan-based-msi-partners-with-indias-syrma-sgs-for-laptop-manufacturing-in-india-8617617

Editor’s Note: Syrma SGS Technology has partnered with Taiwan-based MSI to locally assemble laptops at its Chennai facility, marking a key step in MSI’s plan to localize manufacturing in India under the “Make in India” initiative. The collaboration, leveraging MSI’s technology and Syrma’s manufacturing expertise, aims to bring premium laptops to the Indian market while ensuring global competitiveness. Taiwanese companies are increasingly partnering with Indian firms to expand their market reach and tap into India’s growing manufacturing and consumer base.

Foxconn Halts Chinese Worker Deployments to India Amid Equipment Delays, Threatening Apple’s Production Diversification

Foxconn, a major manufacturing partner for Apple, has halted the deployment of Chinese workers to its factories in India, replacing them with Taiwanese workers, according to a report by Rest of World. This shift follows significant delays in the shipment of critical manufacturing equipment meant for Foxconn’s iPhone assembly plants in Tamil Nadu and Karnataka. These delays threaten Apple’s efforts to diversify its production away from China and reduce its dependence on Chinese manufacturing capabilities. As a result, Foxconn is ramping up production at its Chinese facilities to ensure iPhone units are available for final assembly in India. The disruption is exacerbated by geopolitical tensions between China and India, with some sources suggesting that the Chinese government may be behind the suspension of worker deployments and equipment exports.

This situation holds broader implications for non-Indian companies seeking to diversify their supply chains away from China. The ongoing challenges faced by Foxconn highlight the complex interplay of geopolitical tensions, logistics, and the reliance on specific technologies and workforce expertise. For businesses looking to expand operations in India or other emerging markets, such disruptions underline the importance of addressing not just local infrastructure and labor availability but also the political dynamics that can affect cross-border operations. The delays in equipment and the sudden workforce shifts serve as a reminder of the risks companies face when attempting to move production away from China.

https://www.business-standard.com/companies/news/foxconn-halts-chinese-workers-deployment-to-india-sends-taiwanese-staff-125011100497_1.html

Editor’s Note: Foxconn has halted Chinese worker deployments to its iPhone factories in India due to delays in critical equipment shipments, replacing them with Taiwanese workers. These disruptions threaten Apple’s efforts to diversify production away from China, with Foxconn ramping up output in China to meet demand. The situation highlights the challenges non-Indian companies face in diversifying supply chains, as geopolitical tensions and logistical issues complicate operations in emerging markets like India.

Geopolitical Tensions Disrupt Indian Electronics, Solar, and EV Sectors

Indian firms in electronics, solar, and electric vehicle (EV) sectors are grappling with delays and disruptions as China imposes export restrictions on key inputs and machinery, according to the Global Trade Research Initiative (GTRI). These measures, reportedly a response to India’s restrictions on Chinese investments and visas, signal escalating geopolitical tensions and trade conflicts. GTRI Founder Ajay Srivastava emphasized that while these curbs impact India’s industries, they are equally detrimental to China’s manufacturing and exports. India’s imports from China surged to USD 101.73 billion in 2023-24, underscoring its dependency on Chinese machinery and components.

This development is particularly relevant for non-Indian companies dependent on Indian production for electronics, solar panels, or EV components, as supply chain disruptions could affect global markets. GTRI advocates that India diversify its supply chains by strengthening partnerships with nations like Japan and South Korea to reduce reliance on Chinese inputs. For international businesses, India’s push for local manufacturing and diversified sourcing presents an opportunity to explore new avenues for collaboration while navigating shifting trade dynamics.

https://economictimes.indiatimes.com/news/economy/foreign-trade/china-strikes-with-export-curbs-indias-ev-and-solar-boom-faces-supply-chain-chaos/articleshow/117297176.cms?from=mdr

Editor’s Note: Indian electronics, solar, and EV sectors are facing delays due to China’s export restrictions on key inputs, a response to India’s restrictions on Chinese investments and visas. This disruption highlights India’s dependency on Chinese imports and the broader impact on global supply chains, particularly for non-Indian companies reliant on Indian production. This update offers valuable insight into the current geopolitical tensions and their effects on international trade dynamics.

India’s EV Market Surpasses 2 Million Sales, Industry Calls for Policy Boost

India’s electric vehicle (EV) market achieved a historic milestone in 2024, crossing 2 million unit sales for the first time, marking a 24% year-on-year growth, according to JMK Research. The EV two-wheeler segment led the charge with 1.2 million units sold, followed by 694,466 three-wheelers, and nearly 100,000 electric cars. The electric bus segment also saw significant growth, surging 39% to 3,834 units, driven by government incentives like the PM E-Drive scheme. With 8% EV penetration in the overall vehicle market, up from 6.8% in 2023, the momentum underscores India’s rapid shift toward sustainable mobility.

As the Union Budget FY2025-26 nears, industry leaders have called for measures to sustain this growth, including subsidies for fast chargers, performance-linked incentives for local manufacturing, and expanded charging infrastructure in semi-urban and rural areas. These policy recommendations not only aim to accelerate domestic adoption but also present opportunities for non-Indian companies. For global firms, India’s burgeoning EV market represents a promising avenue for investment in localized manufacturing, supply chain collaborations, and advanced charging solutions, aligning with the country’s ambitions to become a global leader in sustainable mobility.

Editor’s Note: India’s electric vehicle (EV) market surpassed 2 million sales in 2024, driven by strong growth in two-wheelers, three-wheelers, and electric buses, with an 8% penetration in the overall vehicle market. Industry leaders are urging policy measures, including subsidies for fast chargers and incentives for local manufacturing, to sustain this growth. This provides a valuable insight into the rapid expansion of India’s EV market and the opportunities it offers for global investment and collaboration.