AMD and IIT Bombay Partner to Boost Semiconductor Startups in India
Global chip giant AMD has announced a strategic partnership with the Society for Innovation and Entrepreneurship (SINE), an incubator at IIT Bombay, to support semiconductor startups in India. As part of this collaboration, AMD will provide grants to startups incubated at IIT Bombay focused on developing energy-efficient Spiking Neural Network (SNN) chips. This initiative aims to significantly reduce the energy consumption of conventional neural networks. Numelo Technologies has been awarded the first grant to develop SNN chips using ultra-low power quantum tunneling on silicon-on-insulator (SOI) technology.
The company’s commitment to energy efficiency was highlighted by AMD India’s Country Head, Jaya Jagadish. He said that by 2025, the company hopes to improve energy efficiency for AMD processors and accelerators, which power high-performance computing (HPC) and artificial intelligence (AI) training. This partnership, part of AMD’s corporate social responsibility initiative, aligns with India’s comprehensive semiconductor strategy. Shaji Varghese, CEO of SINE-IIT Bombay, highlighted the importance of nurturing innovative semiconductor design startups to address industry gaps and support India’s burgeoning semiconductor ecosystem.
Editor’s Note: AMD has teamed up with IIT Bombay’s SINE incubator to bolster semiconductor startups in India, focusing on advancing energy-efficient Spiking Neural Network chips. This collaboration aims to drive innovation in semiconductor design, aligned with AMD’s commitment to enhancing energy efficiency in its processors and accelerators for high-performance computing and AI training by 2025.
Taiwanese Firms Shift Supply Chains to India Amid Rising US-China Trade Tensions
Taiwanese companies are increasingly relocating their supply chains from China to India, driven by rising global trade tensions and strengthened economic ties between Taipei and New Delhi. According to James Huang, chairman of the Taiwan External Trade Development Council, Taiwan’s foreign direct investment (FDI) in India surged to over $665 million from 2018 to 2023, a significant increase compared to nearly $277 million in the decade from 2006 to 2017. Huang noted that this shift highlights the growing trend of Taiwanese firms moving supply chains to India, particularly in mobile phone assembly and footwear industries, as India seeks to attract more investment from the major chip-producing nation to bolster its manufacturing sector.
The move comes amid Taiwan’s strategic partnership with India’s Tata Group to build the first semiconductor fabrication facility in Gujarat, supported by a $10 billion incentive scheme. This collaboration is part of broader efforts to enhance bilateral trade, which reached $10.1 billion in the fiscal year ending March 2024. Taiwan is also investing in training Indian students and talents in semiconductor technology to pave the way for future cooperation. The geopolitical context, including Taiwan’s contentious relationship with China and India’s strained ties with its northern neighbor, underscores the significance of this economic realignment.
Editor’s Note: Taiwanese firms are increasingly shifting their supply chains from China to India amidst escalating US-China trade tensions and improving economic relations between Taipei and New Delhi. This relocation, highlighted by a significant rise in Taiwan’s FDI in India, particularly benefits sectors such as mobile phone assembly and footwear manufacturing. The strategic partnership between Taiwan and India, including plans for a semiconductor fabrication facility and initiatives to boost bilateral trade and technology exchange, underscores the geopolitical dynamics influencing these economic shifts.
FAME-III Scheme Unlikely to Feature in Budget 2024, Says Minister H D Kumaraswamy
The FAME-III (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme is set to be implemented soon but is unlikely to be included in the upcoming Budget 2024, according to H D Kumaraswamy, Minister of Heavy Industries and Steel. Speaking at an industry event, Kumaraswamy mentioned that all seven relevant ministries have submitted recommendations for the scheme, which is now in its final stages of approval. He did not provide a specific timeline for the launch of FAME-III. The scheme will replace the Electric Mobility Promotion Scheme 2024 (EMPS), introduced in March this year with an outlay of Rs 500 crore until July 31, 2024.
In addition to discussing FAME-III, Kumaraswamy unveiled a vision plan for India’s automotive sector from 2024 to 2047, which emphasizes skilling and workforce development. The plan will outline recommendations for equipping the workforce with the necessary skills and capabilities for the evolving automobile industry. The government is collaborating with various institutes and bodies, such as the Automotive Skill Development Council, to develop certification programs aimed at standardizing job roles and training trainers. The minister’s remarks come amid growing anticipation of an extension to the FAME-II scheme, which was introduced in 2019 with an outlay of Rs 10,000 crore and is set to conclude on March 31, 2024.
Editor’s Note: Minister H D Kumaraswamy has indicated that the FAME-III scheme, aimed at promoting hybrid and electric vehicles, is unlikely to be included in the upcoming Budget 2024. The scheme, currently in its final stages of approval after recommendations from seven ministries, will replace the Electric Mobility Promotion Scheme 2024. Kumaraswamy also unveiled a long-term vision plan for India’s automotive sector, focusing on workforce development and skill enhancement to meet industry demands from 2024 to 2047, highlighting efforts to collaborate with institutions for standardized certification programs.
Fund Industry Engages CBIC and Finance Ministry Over GST on AIFs
Amid the rapid growth of assets under management (AUM) for Alternative Investment Funds (AIFs), the Central Board of Indirect Taxes & Customs (CBIC) seeks greater oversight and understanding of these entities. The CBIC, responsible for levying and collecting GST, aims to clarify the tax obligations of AIFs. However, the fund industry argues that AIFs themselves do not provide taxable services, as the fund manager is the one offering services, with the funds merely acting as pooling vehicles. Earnings from AIFs, such as interest and capital gains, are not subjected to GST under current regulations.
In response to concerns and notices from the GST department, the AIF sector has approached both the CBIC and the finance ministry for clarity, hoping for resolutions in the upcoming budget. AIFs, regulated by the Securities and Exchange Board of India (Sebi), cater to sophisticated investors and are organized under trusts registered with Sebi. Unlike mutual funds, AIFs require a minimum investment of Rs 1 crore and target returns from startups and early-stage ventures. The industry previously encountered tax authorities in 2021 when a tribunal ruled that ‘carried interest’ is a ‘performance fee’ subject to service tax, highlighting ongoing complexities in AIF tax treatment.
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Editor’s Note: The Alternative Investment Fund (AIF) industry is engaging with the Central Board of Indirect Taxes & Customs (CBIC) and the finance ministry to resolve uncertainties surrounding GST implications on AIFs. Amid concerns raised by tax authorities, the industry asserts that AIFs themselves do not provide taxable services, emphasizing the distinction between fund management services and the nature of AIFs as investment vehicles.
IAMAI Urges Karnataka to Reconsider Gig Workers Bill, Citing Business Impact Concerns
The Internet and Mobile Association of India (IAMAI) has called on the Karnataka government to halt the proposed Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, pending further consultation. IAMAI expressed concerns that the legislation, aimed at protecting gig workers’ rights and providing social security, could negatively impact the ease of doing business in the state. The association recommended a consultation period of 30 to 60 days, warning that the bill’s provisions, such as requiring firms to contribute 1-2% of their annual turnover to a social security fund, would result in a “dual levy” already covered by the central government’s Code on Social Security (CoSS), 2020.
IAMAI also highlighted issues like increased administrative burdens, financial expenses, and competitive disadvantages for online services if the bill is implemented. The draft bill mandates welfare measures, social security benefits, and transparency in automated systems for gig workers, potentially affecting major platforms like Swiggy, Zomato, Ola, and Uber. The association raised concerns about mandatory data sharing, state guidelines for worker-company contracts, a rigid 14-day termination notice, and the lack of clarity on provided benefits. IAMAI warned that such regulations could reduce demand for gig work and complicate the continuous provision of benefits due to the transient nature of gig employment.
Editor’s Note: The Internet and Mobile Association of India (IAMAI) has urged the Karnataka government to pause the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, citing potential adverse effects on business operations. IAMAI expressed concerns over the proposed legislation’s financial implications, administrative burdens, and its potential to hinder the ease of doing business, suggesting a longer consultation period to address these issues comprehensively.
River Mobility to Invest Rs 1,000 Crore in New EV Manufacturing Facility
Bengaluru-based electric vehicle startup River Mobility Pvt Ltd has announced plans to invest approximately Rs 1,000 crore in a new manufacturing facility capable of producing 5 lakh vehicles annually. The company is in active discussions with the governments of Telangana, Tamil Nadu, Karnataka, and Andhra Pradesh to secure 25 to 50 acres of land for the factory. Aravind Mani, CEO of River Mobility, said that they were actively discussing with governments to secure land for constructing their own factory. The new facility aims to expand production significantly from the current leased factory in Bengaluru, which has a capacity of 1 lakh units per year and follows an initial Rs 250 crore investment in R&D and production.
River Mobility has raised around $68 million (approx. Rs 575 crore) from investors over the past three years, including major Japanese companies such as Yamaha, Toyota, Mitsui, and Marubeni. The startup also marks the first Indian investment for Maniv Mobility, Trucks VC, Lower Carbon Capital, Toyota Ventures, Al-Futtaim Automotive, and Marubeni Ventures. Alongside the manufacturing expansion, River Mobility recently opened its first retail outlet in Hyderabad, signaling the company’s rapid growth and commitment to scaling its operations in the burgeoning EV market.
Editor’s Note: River Mobility Pvt Ltd, a Bengaluru-based electric vehicle startup, is set to invest Rs 1,000 crore in a new manufacturing facility capable of producing 5 lakh vehicles annually. The company’s expansion plans include securing land from several state governments and building on its initial investment in research and development to enhance production capacity and meet growing demand in the EV sector.
GeM Procurement Hits Rs 1.24 Lakh Crore in Q1, Poised to Become World’s Largest Platform
The Government e-Market (GeM) portal has achieved a procurement milestone of Rs 1.24 lakh crore in the first quarter of the 2024-25 fiscal year, marking a 136% growth compared to the same period last year. GeM CEO Prashant Kumar Singh stated that at this rate, the platform is on track to become the world’s largest by the end of the fiscal year, surpassing South Korea’s KONEPS and Singapore’s GeBIZ. Central ministries, including CPSEs, contributed over Rs 1 lakh crore to this total, with the ministries of coal, defence, and petroleum and gas emerging as the top procurers. Notably, the services segment led the growth, with service purchases exceeding Rs 80,500 crore during the quarter.
To further simplify public procurement and reach last-mile sellers, GeM plans to launch the ‘GeM SAHAYAK’ program, aiming to create a network of 6,000-7,000 accredited trainers across India. These trainers will assist sellers in navigating the portal and enhancing business opportunities. Additionally, the platform has reduced transaction charges for sellers, lowering fees from 0.45% to 0.30% for orders above Rs 5 lakh, with a cap of Rs 3 lakh. This reduction, ranging from 33% to 96%, is expected to make sellers’ offerings more competitive. To maintain its leading position in public procurement, GeM will also deploy a generative AI-based chatbot, GeMAI, in the coming quarter.
Editor’s Note: The Government e-Market (GeM) portal has achieved significant growth, with procurement reaching Rs 1.24 lakh crore in the first quarter of the fiscal year 2024-25, marking a substantial increase from the previous year. GeM’s CEO Prashant Kumar Singh anticipates that the platform is poised to become the world’s largest by year-end, surpassing global counterparts like South Korea’s KONEPS and Singapore’s GeBIZ. With a strong focus on enhancing accessibility and efficiency, GeM is launching initiatives like ‘GeM SAHAYAK’ and reducing transaction charges to further bolster its role in facilitating transparent and streamlined public procurement across India.
Taiwan Positioned as Key Partner for India’s ‘Make in India’ Policy, Says TAITRA Chairman
James C. F. Huang, Chairman of the Taiwan External Trade Development Council (TAITRA), has highlighted Taiwan’s potential as a crucial ally for India’s ‘Make in India’ initiative. Speaking at the Taiwan Expo in New Delhi, Huang noted that Taiwan’s expertise in global supply chain management and production of key components makes it an ideal partner for India. Taiwanese firms like Foxconn and Winston are already expanding their operations in India, with Powerchip Semiconductor Manufacturing Company collaborating with Tata Group to establish India’s first 12-inch wafer fab in Dholera, Gujarat. Additionally, Phison Electronics is exploring joint ventures with Indian counterparts, further solidifying Taiwan’s commitment to India’s manufacturing sector.
The Expo, held from July 8 to 10, 2024, showcased Taiwan’s advanced solutions in various industries including electronics, smart manufacturing, and healthcare. The event, 1.6 times larger than last year’s in Mumbai, featured 12 pavilions demonstrating Taiwan’s capabilities and underscoring its role in enhancing India’s industrial landscape. Cynthia Kiang, Director General of TITA, emphasized India’s growing position as a major manufacturing hub under the global “China+1” strategy, while Taiwanese and Japanese companies are also exploring trilateral cooperation opportunities. With ongoing efforts to strengthen bilateral ties, Taiwan and India are poised for significant collaborative advancements in the global technology and manufacturing sectors.
Editor’s Note: James C. F. Huang, Chairman of TAITRA, has underscored Taiwan’s pivotal role in supporting India’s ‘Make in India’ campaign, highlighting Taiwan’s expertise in supply chain management and component manufacturing. Taiwanese companies like Foxconn and Winston are expanding their presence in India, while partnerships such as Powerchip Semiconductor Manufacturing Company’s venture with Tata Group signify Taiwan’s commitment to India’s industrial growth. The Taiwan Expo in New Delhi further showcased Taiwan’s advanced capabilities across electronics, smart manufacturing, and healthcare, indicating a robust foundation for bilateral collaboration aimed at enhancing India’s manufacturing prowess globally.