Tata Electronics, PSMC, and Himax Partner for Display Semiconductor Manufacturing in Gujarat
Tata Electronics has signed a tripartite Memorandum of Understanding (MoU) with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies, Inc. to establish a display semiconductor manufacturing unit in Gujarat. The agreement, signed at the IESA Vision Summit, aims to develop comprehensive display semiconductor solutions, including chip design, manufacturing, packaging, and electronics manufacturing services (EMS) for Indian and global markets. Tata Electronics’ CEO and MD, Randhir Thakur, emphasized that the collaboration will drive innovation in display-related semiconductor products, catering to growing demand across industries.
The partnership aligns with India’s push to strengthen its semiconductor and electronics ecosystem, providing opportunities for global companies to collaborate and tap into the country’s expanding tech infrastructure. Tata Electronics is already making significant investments in the sector, including a ₹91,000 crore semiconductor fabrication plant in Gujarat’s Dholera with PSMC and a ₹27,000 crore chip assembly plant in Assam. For non-Indian companies, this development signals India’s potential as a strategic hub for semiconductor manufacturing, offering supply chain diversification and new business prospects.
Editor’s Note: Tata Electronics has partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies to establish a display semiconductor manufacturing unit in Gujarat. This collaboration aims to develop comprehensive display semiconductor solutions and aligns with India’s efforts to enhance its semiconductor ecosystem. Tata Electronics is also investing significantly in the sector, including a ₹91,000 crore fabrication plant in Dholera and a ₹27,000 crore assembly plant in Assam, positioning India as a potential hub for semiconductor manufacturing.
Kalyani Powertrain and Compal Electronics to Manufacture X86 Servers in India
Kalyani Powertrain Ltd (KPTL), a subsidiary of Bharat Forge, has signed a technology licensing agreement with Taiwan’s Compal Electronics Inc. to manufacture ‘X86 platform’ servers in India. The two companies formalized the partnership through a Memorandum of Understanding (MoU) aimed at developing a locally manufactured server business. Compal will provide technological support, overseeing production, assembly, and testing, ensuring high-quality, India-made server solutions. Bharat Forge Vice Chairman and Joint MD Amit Kalyani highlighted that the collaboration will enhance India’s manufacturing competitiveness, while Compal CEO Tony Bonadero expressed confidence in expanding ICT-related business opportunities through this partnership.
The move aligns with India’s push for self-reliance in electronics manufacturing and strengthens its position in the global IT hardware supply chain. KPTL’s electronics division had already launched ‘Made in India’ servers earlier this year, reflecting the country’s growing capabilities in advanced computing solutions. For non-Indian companies, this partnership underscores India’s potential as an emerging hub for high-end electronics manufacturing, offering alternative production bases and supply chain diversification in a sector traditionally dominated by China and Taiwan.
Editor’s Note: Kalyani Powertrain Ltd has signed a technology licensing agreement with Taiwan’s Compal Electronics to manufacture X86 servers in India. This partnership aims to develop a locally produced server business, with Compal providing technological support for production and quality assurance. The collaboration aligns with India’s push for self-reliance in electronics manufacturing and positions the country as an emerging hub for high-end electronics, offering alternatives to traditional production bases in China and Taiwan.
Foxconn’s Ennoconn Enters Indian Market, Eyes Industrial IoT Growth
Foxconn subsidiary Ennoconn has registered a company in Tamil Nadu, marking its official entry into the Indian market. A global leader in industrial IoT, embedded technology, and cloud management services, Ennoconn aims to introduce its products domestically, expanding its presence in high-growth sectors such as smart cities, smart manufacturing, and financial services. The move strengthens Foxconn’s foothold in India, where it already operates an Apple iPhone assembly plant in Sriperumbudur employing 40,000 people. Ennoconn’s Industrial Metaverse Transformation initiative is expected to bring advanced cloud-based AIoT solutions to India, competing with established players like Advantech, Siemens, and Rockwell Automation.
India’s expanding manufacturing ecosystem and policy support make it an attractive destination for global tech companies. With the government’s Production Linked Incentive (PLI) scheme receiving record investment—Rs 1.46 lakh crore as of August 2024, expected to surpass Rs 2 lakh crore—manufacturers benefit from increased incentives and infrastructure support. Sectors like electronics, IT hardware, and auto components have seen budget allocations surge, reinforcing India’s status as a rising industrial hub. For non-Indian companies, Ennoconn’s entry underscores India’s growing role as a strategic base for digital transformation, IoT development, and smart manufacturing solutions.
Editor’s Note: Foxconn subsidiary Ennoconn has officially entered the Indian market by registering a company in Tamil Nadu, focusing on industrial IoT and embedded technology. The initiative aims to expand into sectors like smart cities and smart manufacturing, enhancing Foxconn’s presence in India, where it already operates an Apple iPhone assembly plant. Ennoconn’s efforts align with India’s growing manufacturing ecosystem and government support, positioning the country as an attractive destination for global tech companies and digital transformation initiatives.
Kaynes Technology Expands Globally with Acquisitions in Japan and Taiwan
Kaynes Technology, a leading Indian electronics manufacturing services (EMS) provider, is expanding its global presence with acquisitions in Japan and Taiwan. While the deal in Japan is in its early stages, the Taiwan acquisition is nearing completion. According to Raghu Panicker, CEO of Kaynes SemiCon, these moves aim to strengthen the company’s technical expertise and global footprint while improving production quality at its Indian facilities. Domestically, Kaynes is investing in new EMS plants across Odisha, Madhya Pradesh, Jammu, and Chennai to meet rising demand in industrial automation, automotive, and consumer electronics. The company is also focusing on advanced railway safety, space technology, and electric vehicle (EV) components.
India’s booming electronics manufacturing sector, supported by government incentives, presents growing opportunities for global players. With the country targeting US$500 billion in electronics production by 2030, Kaynes’ expansion aligns with the broader trend of manufacturers diversifying supply chains beyond China. For non-Indian companies, this expansion highlights India’s emergence as a competitive EMS hub, offering collaboration opportunities and a strategic base for accessing global markets.
Editor’s Note: Kaynes Technology is expanding its global presence through acquisitions in Japan and Taiwan, with the Taiwan deal nearing completion. CEO Raghu Panicker emphasized that these moves aim to enhance the company’s technical expertise and improve production quality in India, where Kaynes is also investing in new EMS plants to meet rising demand. This expansion aligns with India’s growing electronics manufacturing sector and its goal of reaching US$500 billion in production by 2030, positioning the country as a competitive hub for global electronics manufacturing.
MediaTek Eyes Growth in Automotive and IoT Amid Expanding AI Adoption
Taiwanese fabless chipmaker MediaTek is diversifying beyond smartphones, targeting growth in the Internet of Things (IoT) and automotive segments. While smartphones currently contribute over 50% of its revenue, the company sees AI-powered IoT solutions and automotive technologies as key future growth engines. MediaTek’s automotive solutions are already featured in vehicles like the Tata Punch EV and Skoda Slavia, while its partnership with JioThings powers smart clusters in two-wheelers such as the Kinetic Green Flex and E-Luna. Managing Director Anku Jain highlighted that the company’s expertise in security, Advanced Driver Assistance Systems (ADAS), and multi-screen in-car displays positions it for rapid expansion in the coming years.
The global automotive semiconductor industry is heating up, with rivals like Qualcomm also strengthening their presence in this space. India’s booming electric vehicle and connected mobility ecosystem further enhances the opportunity for semiconductor firms looking to capitalize on next-generation automotive technologies. For non-Indian companies, MediaTek’s push into AI-driven IoT and automotive markets underscores the growing demand for smart mobility solutions and presents potential collaboration opportunities in one of the world’s fastest-growing automotive markets.
Editor’s Note: MediaTek is diversifying beyond smartphones, targeting growth in the Internet of Things (IoT) and automotive segments, where it sees AI-powered solutions as key future drivers. The company’s automotive technologies are already utilized in vehicles like the Tata Punch EV and Skoda Slavia, and its partnership with JioThings powers smart clusters in two-wheelers. As the global automotive semiconductor industry grows, MediaTek’s focus on advanced technologies positions it well for expansion in India’s booming electric vehicle and connected mobility ecosystem.
India Nears Approval of Semiconductor Proposals, Prepares for ISM Phase 2
The Indian government is in the final stages of approving the next batch of semiconductor project proposals under the first phase of the India Semiconductor Mission (ISM). Applications from an HCL Group-Foxconn joint venture, Tarq Semiconductors (backed by the Hiranandani Group), and two to three other firms are set to be reviewed. With nearly ₹4,600-4,700 crore of the initial ₹76,000 crore allocation still pending, these funds will be directed toward the approved projects. Once the first phase is completed, the government will launch the second phase, expanding its focus beyond semiconductor fabrication and chip packaging to include component manufacturers, raw material suppliers, and other key players in the ecosystem.
The expansion of ISM aligns with India’s broader goal of establishing a robust semiconductor and display manufacturing ecosystem. Electronics and IT Minister Ashwini Vaishnaw emphasized that “Semicon 2.0” will provide a more comprehensive framework to support the industry. For non-Indian companies, this initiative presents significant opportunities to invest in India’s growing semiconductor landscape, collaborate on supply chain development, and tap into government incentives aimed at reducing global reliance on existing chip-making hubs.
Editor’s Note: The Indian government is close to approving semiconductor project proposals under the first phase of the India Semiconductor Mission (ISM), with applications from companies like HCL Group-Foxconn and Tarq Semiconductors under review. Nearly ₹4,700 crore of the initial ₹76,000 crore allocation is still pending, which will support approved projects before the government launches the second phase, focusing on a wider range of semiconductor ecosystem players. This expansion aligns with India’s goal of strengthening its semiconductor manufacturing landscape, offering significant investment opportunities for global companies and fostering collaboration to reduce reliance on established chip-making hubs.