Weekly News Updates- March 13 – March 19

Deep Tech Policy nearing end of consultation; First semiconductor chip from the Dholera plant to be released; DAVV teams up with pvt varsity of tech in Taiwan; India adopts EV policy; Rayprus is seeking to enter India after Corning; India, US, South Korea consider tech sector cooperation; EMPS to promote e2W, e3W; 2024 venture capital investment activity fueled by scaled startups

Deep Tech Policy nearing end of consultation, to be released soon

Rajesh Kumar Singh, secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), stated at the Startup Mahakumbh that the Indian government is nearing completion on a strategy specifically for deep technology startups, as reported by Financial Express. According to Singh, interministerial discussions are now taking place regarding the deep tech policy, which may soon be  released.

Notably, Finance Minister Nirmala Sitharaman disclosed in this year’s interim budget that the government is preparing a new scheme to support deep tech research. She stated that 50 interest-free loans totaling Rs. 1 lakh crore will be used by the government to establish a corpus. According to her, this would encourage the private sector to increase its level of innovation and research.

Editor’s Note: The Indian government, led by the Department for Promotion of Industry and Internal Trade (DPIIT), is on the verge of finalizing a deep tech policy aimed at fostering innovation within the sector. This imminent policy release follows Finance Minister Nirmala Sitharaman’s announcement of a substantial financial support scheme, indicative of India’s commitment to nurturing deep technology startups and advancing research and development efforts.

First semiconductor chip from the Dholera plant to be released by 2026 end

According to reports in The Economic Times, the first semiconductor chip from the soon-to-be-built Dholera plant in Gujarat, which is a joint venture between the Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), is expected to be ready for production by the end of 2026.

In an interview with Business Daily, PSMC Chairman Frank Huang stated that the forthcoming semiconductor fabrication in Dholera with Tata Group will start with the production of 28 nanometer chips. Memory chips and other integrated circuits are produced by PSMC.
With an investment of Rs 91,000 crore, the Tata Group has acquired about 160 acres near Dholera to build the country’s first massive semiconductor fabrication plant.


Editor’s Note: The joint venture between the Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) is set to mark a significant milestone in India’s semiconductor industry, with plans to commence production of the first semiconductor chip from the Dholera plant in Gujarat by the end of 2026. Led by PSMC’s expertise, the facility aims to kickstart production with 28 nanometer chips, bolstering India’s domestic chip manufacturing capabilities and signaling a major step towards self-reliance in semiconductor technology.

DAVV teams up with private varsity of tech in Taiwan

Devi Ahilya Vishwavidyalaya signed its first Memorandum of Understanding (MOU) with Ming Chi University (MCUT) in Taiwan

Five members of the DAVV delegation are in Taiwan working with six Taiwanese universities on research and knowledge sharing related to semiconductor and chip design.
The team will sign MoUs detailing the terms of cooperation on five further colleges by March 23.

DAVV is also set to sign agreements with other universities, such as Kaohsiung ISU GMC, National Ping Tung University, National Chin-Yi University of Technology, and National Taipei University of Technology and Asia University in Taiwan.


Editor’s Note: Devi Ahilya Vishwavidyalaya (DAVV) has recently established its first Memorandum of Understanding (MOU) with Ming Chi University (MCUT) in Taiwan, marking a significant step towards international collaboration. With plans for further agreements with additional Taiwanese universities, DAVV aims to foster research partnerships and knowledge exchange, particularly in the field of semiconductor and chip design.

India adopts EV policy; localization and investment crucial

In order to encourage India as a manufacturing destination and enable the production of EVs with latest technology there, the Union Government has approved a scheme. Reputable global EV manufacturers are hoping to invest in the e-vehicle market thanks to this regulation.

This will strengthen the EV ecosystem by encouraging healthy competition among EV players, leading to high volume of production, economies of scale, lower cost of production, reduce imports of crude oil, lower trade deficit, reduce air pollution, especially in cities, and have a positive impact on health and the environment. It will also give Indian consumers access to the newest technology and support the Make in India initiative.


Editor’s Note: India’s newly adopted EV policy aims to bolster the country’s position as a manufacturing hub and attract investment from global EV manufacturers. By promoting localization and investment, the policy seeks to foster competition, drive production volumes, reduce costs, and mitigate environmental impacts, aligning with the Make in India initiative and advancing sustainable transportation goals.

Rayprus is seeking to enter India after Corning

Apple supplier, Rayprus Technologies, a Foxconn subsidiary, is planning to enter the Indian market with a facility in Bengaluru, following the announcement months earlier that US gorilla glass manufacturer Corning Inc. is constructing a production facility in Tamil Nadu.

It was revealed in December of last year that Apple was in advanced discussions to expand its manufacturing operations in the second-largest smartphone market in the world with component manufacturers such as Rayprus.

Additionally, Taiwan’s Foxconn is spending $2.7 billion on the Bengaluru facility and other infrastructure. Located close to Kempegowda International Airport in the IT investment area (ITIR), the 300-acre site will be able to build 20 million smartphones a year when it is finished, making it Foxconn’s largest facility in India.


Editor’s Note: Following Corning Inc.’s move into Tamil Nadu, Rayprus Technologies, a subsidiary of Foxconn and Apple supplier, is poised to enter the Indian market with a facility in Bengaluru, signaling a significant expansion of Taiwan’s tech footprint in India. With Foxconn investing heavily in the Bengaluru facility, it underscores Taiwan’s commitment to bolstering its presence in India’s burgeoning smartphone manufacturing sector.

India, US, South Korea consider tech sector cooperation

During a trilateral dialogue between India, the US, and South Korea, the topics of increasing cooperation in the areas of semiconductor supply chains, digital public infrastructure, artificial intelligence, quantum computing, vital minerals, and military hardware manufacturing were highlighted.

The US summary stated that this was the first time the three countries had held a trilateral conference like the one that took place in Seoul.

According to the US embassy, the summit pledged to coordinating actions to safeguard sensitive technologies and create reliable technology ecosystems both locally and internationally. According to the embassy, the group also discussed potential collaboration in biotechnology, active pharmaceutical supply chains, and defence industrial development and production.


EMPS to promote e2W, e3W, 4-wheelers kept out

The Electric Mobility Promotion Scheme (EMPS), 2024, was unveiled by the Centre on Wednesday with the goal of encouraging the sale of electric two-wheelers (e2W) and three-wheelers (e3W) throughout the nation.

Minister for Heavy Industries Mahendra Nath Pandey announced that the new plan, which would run for four months, has been given a Rs 500 crore allocation by the Centre.

In response to growing demand and to lessen the financial strain on electric vehicle manufacturers, the government has reduced the maximum subsidy threshold for e2W vehicles from Rs 22,500 to Rs 10,000, and for e3W vehicles from Rs 111,505 to Rs 50,000. Rs 5,000 per kilowatt-hour (kWh) would be given as an incentive to both types of vehicles.


Editor’s Note: The Electric Mobility Promotion Scheme (EMPS), 2024, launched by the Centre, focuses on promoting the adoption of electric two-wheelers (e2W) and three-wheelers (e3W) across India, with a Rs 500 crore allocation for four months. Minister for Heavy Industries Mahendra Nath Pandey announced reduced subsidy thresholds and incentives per kilowatt-hour to alleviate financial burdens on electric vehicle manufacturers and stimulate demand in the sector.

2024 venture capital investment activity fueled by scaled startups: Research

According to a report jointly published by Bain & Company and the Indian Venture and Alternate Capital Association (IVCA), startups that received funding during the prosperous years of 2020 and 2021 may return to the market in 2024 seeking additional funds, which could fuel growth in venture capital investment activity. Additionally, the survey implies that investors with risk capital, seeking to diversify their investment portfolios, may begin to prioritise more traditional companies throughout the course of the year.

The research emphasises how investors were more cautious in 2023 as a result of rising interest rates, and many growth and late-stage businesses decided to delay their fundraising efforts.

As a result, the number of mega-rounds that surpassed $100 million USD decreased from 48 in 2022 to just 15. On the other hand, there was a roughly 45% decrease in small and medium-sized deals—those valued at less than US$ 50 million—from 1,501 in 2022 to 852 in 2023.