Semiconductor chips samples exported by Tata Electronics from Bengaluru center
Tata Electronics has begun exporting semiconductor chips packaged at its Bengaluru-based R&D center, marking a significant step forward for India’s semiconductor industry. These chips, designed for diverse applications rather than a specific purpose, are being shipped to partners in Japan, the US, and Europe. The company is expanding its customer base while nearing the final stages of designing integrated circuits and printed circuit boards for chips ranging from 28 to 65 nanometers. Some chips will undergo testing with select customers for feedback, with commercial production slated for 2027.
Simultaneously, Tata Group is advancing its semiconductor initiatives, including a new chip-packaging unit in Assam’s Morigaon and a $10 billion chip foundry in Gujarat’s Dholera. Prime Minister Narendra Modi’s recent inauguration of the Rs 27,000-crore indigenous Semiconductor Assembly & Test facility in Assam underlines the government’s support for domestic semiconductor development. Additionally, Tata Electronics, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), is constructing India’s inaugural AI-enabled fab in Dholera. This facility aims to produce chips for power management, display drivers, microcontrollers, and high-performance computing logic, with the first chip expected before the close of 2026.
Editor’s Note: Tata Electronics has initiated the export of semiconductor chip samples from its Bengaluru center, marking a significant milestone in India’s semiconductor manufacturing capabilities. This move underscores Tata’s commitment to bolstering India’s semiconductor industry and reducing dependence on imports. The export of chip samples is expected to pave the way for further expansion of semiconductor manufacturing in India and strengthen the country’s position in the global semiconductor market.
Taiwan foundry to manufacture semiconductor chip designed in India
Mindgrove Technologies, a fabless semiconductor startup incubated by IIT Madras and backed by Peak XV Partners, has designed India’s first commercial high-performance system on chip (SoC). These RISC-V-based chips, targeted at various applications such as vehicles, robots, medical devices, and home appliances, are expected to be manufactured in Taiwan. With a focus on ‘right-sizing,’ Mindgrove aims to bridge the gap between high-end and low-end players in the embedded systems space, offering chips that prioritize performance without compromising on cost.
This SoC, also known as Secure IoT, stands out as the only Indian chip available commercially in its segment. It promises programmability, flexibility, security, and superior computing power for controlling applications across a wide range of connected smart devices. Mindgrove’s chip is poised to revolutionize various sectors, from wearables like smartwatches to utility meters and EV battery management systems. Meanwhile, India is strategically planning to develop a complete semiconductor value chain, starting from design to fabrication and packaging. By offering design support to Indian brands, the country aims to accelerate innovation and production scale domestically, paving the way for self-sufficiency and global positioning in the semiconductor and electronics industry.
Editor’s Note: Mindgrove Technologies, an Indian semiconductor startup, has designed the country’s first commercial high-performance system on chip (SoC), slated to be manufactured in Taiwan. This RISC-V-based chip, targeting various applications, aims to bridge the gap between high-end and low-end players in the embedded systems market, prioritizing performance and affordability.
Sightings of unicorns becoming rare as VCs avoid taking risky leap of faith
Investors are increasingly focusing on late-stage companies, leaving early-stage startups struggling to secure crucial funding. While some early-stage deals are still happening, major players like SoftBank and Tiger Global are directing their attention towards established startups and potential IPOs. This shift has resulted in only two startups achieving unicorn status this year, compared to the previous year’s total of two. Funding processes for new firms remain lengthy, with investment primarily flowing towards fast-growing and profitable companies. However, there’s optimism that ventures improving their economics will attract significant capital in the future.
According to entrepreneurs, the lack of big startup breakthroughs in the past year is notable, with Zepto being one of the few exceptions, currently capitalizing on the quick commerce trend. Only two startups, Perfios and Krutrim AI led by Ola founder Bhavish Aggarwal, have achieved unicorn status in 2024 so far, mirroring the tally for the entire year of 2023.
https://medial.app/news/unicorn-sightings-become-rare-as-vcs-shun-that-leap-of-faith-4b89539a9263a
Editor’s Note: The sighting of unicorns is becoming increasingly rare as venture capitalists favor late-stage companies over early-stage startups, leading to only two new unicorns emerging this year compared to the previous year’s total. Despite the slowdown, there’s hope that ventures with strong economics will attract significant capital in the future.
Government-owned electronics component manufacturer PLI to reduce reliance on outside vendors and generate employment
The government’s initiative to establish benchmarks for electronics component manufacturing has garnered positive reactions from industry stakeholders, who believe it will significantly contribute to realizing the vision of an ‘Atmanirbhar Bharat’ and strengthening the country’s supply chain to bolster exports. The Ministry of Electronics and Information Technology (IT) has initiated consultations with various stakeholders to devise a production-linked incentive (PLI) scheme tailored for the electronics component sector. Experts emphasize that this move will reduce the reliance of original equipment manufacturers (OEMs) on countries like China and Vietnam for sourcing components, thus fostering indigenous production.
Industry leaders commend the government’s proposal to extend the PLI scheme to electronic component manufacturing, recognizing its potential to generate thousands of direct and indirect employment opportunities. Over the past decade, initiatives like ‘Make in India’ have already spurred significant job creation, particularly in electronics manufacturing, which has surpassed the $100 billion mark. The expansion of the PLI scheme is seen as a pivotal step towards achieving self-reliance in manufacturing, with experts highlighting its role in nurturing a robust domestic electronics ecosystem and mitigating India’s dependence on foreign suppliers.
Editor’s Note: The government’s initiative to introduce a production-linked incentive (PLI) scheme for electronics component manufacturing aims to reduce reliance on foreign vendors and boost employment opportunities. Industry stakeholders view this move as crucial for realizing the vision of an ‘Atmanirbhar Bharat’ and strengthening India’s supply chain resilience.
WTO panel ruled against India in the EU and other countries’ IT tariff dispute
A World Trade Organization (WTO) panel has ruled that India violated global trading rules in a dispute with the European Union, Japan, and Taiwan regarding import duties on IT products. The panel’s report recommended that India align such measures with its international obligations. In 2019, the EU, Japan, and Taiwan lodged complaints against India’s imposition of import duties ranging from 7.5% to 20% on various IT products, including mobile phones, components, and integrated circuits, arguing that these tariffs exceeded permissible limits.
The EU, India’s third-largest trading partner, expressed concern over the impact of India’s tariffs on its exports, estimating that up to 600 million euros ($654.66 million) worth of exports were directly affected annually. Brussels emphasized the importance of adhering to the rules-based trading system, describing the tariffs as “illegal” and stressing the necessity for a strong trade relationship based on mutual compliance. While India has made some adjustments to its tariffs in line with global trading rules since last year, its response to the panel’s ruling remains uncertain, with the possibility of an appeal. However, the unresolved status of the WTO’s top appeals bench, due to U.S. opposition to judge appointments, could prolong the case’s legal process.
Editor’s Note: A WTO panel has ruled against India in a dispute with the EU, Japan, and Taiwan regarding import duties on IT products, recommending alignment with international obligations. The EU, expressing concern over the tariffs’ impact on exports, emphasized adherence to the rules-based trading system and the necessity for a strong trade relationship.
Indian gig workers labor on the forefront of the AI revolution
Akash Pandey, a 26-year-old government job aspirant from Basti, Uttar Pradesh, stumbled upon a lucrative online opportunity offering Rs 12,000-13,000 per project for transcribing audio and annotating images. Similarly, Ikshita Nagar, a young doctor in Delhi preparing for the PG entrance test, devoted extra hours to identifying wound types in images and solving NEET questions. Thousands of gig workers like Pandey and Nagar are playing a pivotal role in training artificial intelligence-based large language models (LLMs) by completing microtasks such as transcription, image labeling, and language translation, thereby contributing to the burgeoning field of data annotation services in India.
India is rapidly establishing itself as a prominent hub for data annotation services, with a diverse workforce including flexible workers, mid-tier business analysts, and skilled data engineers collaborating to construct high-quality datasets. Data annotation, crucial for training AI models, is predicted to drive significant growth in the global market, with projections indicating a value of $8.22 billion by 2028. India’s share of this market could surpass $7 billion by 2030, supported by a workforce potentially reaching up to 1 million individuals. Alok Aggarwal, CEO of AI startup ScryAI, highlighted the meteoric rise of annotation-as-a-service in India, emphasizing its pivotal role in meeting the growing demand for annotated datasets. Meanwhile, global AI companies and startups like Databricks, Fractal, Cropin, and Minus Zero are expanding their in-house teams while also relying on outsourced services in India to facilitate faster and more cost-effective data annotation processes.
Editor’s Note: A good read on India’s AI development. Indian gig workers are at the forefront of the AI revolution, contributing to data annotation services by completing microtasks such as transcription and image labeling. India’s burgeoning data annotation market is predicted to exceed $7 billion by 2030, driven by a diverse workforce collaborating to construct high-quality datasets for training AI models.