Weekly News Updates: May 28 – June 3

Global Surveillance Giants Face Hurdles as India Enforces Strict CCTV Security Rules

Global manufacturers of surveillance equipment are clashing with Indian regulators over stringent new rules mandating security testing of internet-connected CCTV cameras. Effective from April 9, the policy requires companies to submit hardware, software, and source code for assessment in government labs before their products can be sold in India. The move stems from New Delhi’s national security concerns, particularly regarding Chinese surveillance tech. Prominent global firms including China’s Hikvision and Dahua, South Korea’s Hanwha, and U.S.-based Motorola Solutions were among 17 companies that unsuccessfully sought a policy delay during an April 3 meeting with Indian officials. According to government documents reviewed by Reuters, the policy is aimed at strengthening cybersecurity and addressing espionage risks, despite industry warnings of supply disruptions and project delays.

For non-Indian companies, the implications are significant. The policy introduces added compliance costs, prolonged approval timelines, and increased scrutiny of proprietary source code. This has raised concerns among global suppliers about intellectual property protection and regulatory transparency. Companies say delays in certifications threaten commercial and infrastructure projects across India. While the government has signaled a potential expansion in testing lab capacity, the current bottlenecks could deter foreign investment and contribute to broader trade tensions, especially amid rising concerns about protectionism in India’s regulatory environment.

https://www.reuters.com/world/china/indias-alarm-over-chinese-spying-rocks-surveillance-industry-2025-05-28

Editor’s Note: India’s new cybersecurity regulations require foreign surveillance equipment manufacturers to submit their hardware, software, and source code for government assessment before selling in the country, citing national security concerns—especially regarding Chinese tech—despite industry warnings of supply chain disruptions. The policy increases compliance costs, delays approvals, and raises intellectual property concerns, potentially deterring foreign investment and escalating trade tensions. However, these challenges could open opportunities for Taiwanese companies to expand their presence in India’s security technology market.

MediaTek Praises India’s R&D Strength, Cautions on Semiconductor Manufacturing Timeline

During a recent media interaction in Taiwan, MediaTek Co-COO and CFO David Ku acknowledged India’s critical role in global semiconductor R&D, while offering a tempered view on its manufacturing readiness. With over 1,200 employees in India—its second-largest R&D base globally—MediaTek’s engagement is rooted in talent availability rather than geopolitics. Ku emphasized India’s leadership in software and front-end chip design, but noted that hardware and manufacturing capabilities remain under development. Citing complex supply chain demands and infrastructure limitations, he stressed that building fabrication and packaging capabilities in India will take time. “Even in the U.S., it takes nearly four years to begin chip production,” Ku said, referencing TSMC’s Arizona facility.

For non-Indian companies, MediaTek’s stance offers both inspiration and insight. India is positioned as a vital destination for innovation and design, but expectations around rapid manufacturing ramp-up should be measured. The message is relevant to global semiconductor firms evaluating India as part of a China+1 strategy: while India excels in software and talent-driven R&D, substantial investment, ecosystem development, and skill-building are prerequisites for it to emerge as a manufacturing powerhouse. MediaTek’s continued investment underscores the long-term value in India’s innovation capabilities despite current industrial limitations.

https://www.fortuneindia.com/business-news/mediateks-david-ku-on-indias-chip-ambitions-rd-powerhouse-now-manufacturing-hub-later/123491

Editor’s Note: MediaTek acknowledges India’s strength in semiconductor R&D, particularly in software and front-end chip design, but cautions that its manufacturing and supply chain capabilities will take time to develop due to infrastructure challenges. While India is a promising hub for innovation and talent-driven design, substantial investment and ecosystem development are necessary for it to become a global semiconductor manufacturing powerhouse.

India Restores RoDTEP Benefits for SEZs, EOUs, and AA Holders from June 2025

The Government of India has reinstated the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme benefits for Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zone (SEZ) units, effective for all eligible exports made from 1st June 2025 onwards. This move, aimed at enhancing India’s export competitiveness, comes after a brief suspension of benefits which were previously available until 5th February 2025. The RoDTEP scheme, operational since January 2021, reimburses embedded duties and taxes not refunded under other schemes, aligning with WTO norms. With disbursements exceeding ₹57,976 crore as of March 2025 and a fresh allocation of ₹18,233 crore for FY 2025–26, the scheme will now cover 10,780 HS lines for DTA exports and 10,795 HS lines for AA/EOU/SEZ exports.

For non-Indian companies, especially those sourcing from or operating joint ventures within Indian SEZs or EOUs, the restoration of RoDTEP benefits is a strategic development. It ensures cost efficiency and global price competitiveness of Indian-manufactured goods, which can strengthen supply chains and lower procurement costs. This also signals India’s intent to offer a more stable and predictable policy environment for foreign investors involved in export-linked production.

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131526#:~:text=The%20decision%20comes%20as%20part,field%20for%20exporters%20across%20sectors.

Editor’s Note: India has reinstated RoDTEP benefits for SEZs, EOUs, and AA holders starting June 2025, after a brief suspension, to boost export competitiveness by reimbursing embedded duties and taxes in line with WTO norms. With over ₹57,976 crore disbursed and a fresh allocation of ₹18,233 crore for FY 2025–26, the scheme now covers thousands of HS lines for both DTA and SEZ-linked exports. This restoration enhances cost efficiency, strengthens supply chains, and signals India’s commitment to a stable policy environment for foreign investors in export-driven production.

Frinks AI Raises $5.4M to Revolutionize Industrial Quality Control with Vision AI

Frinks AI, a deep-tech startup founded by IIT Hyderabad alumni, has raised $5.4 million in a Pre-Series A round led by Prime Venture Partners, taking its total funding to $6.25 million. The startup is building cutting-edge Vision AI systems that enable manufacturers to automate quality control with near-perfect accuracy. With backing from Chiratae Ventures, Navam Capital, and industry stalwarts like S Ramadorai (former CEO of TCS) and Dr. V Sumantran (ex-Tata Motors), Frinks AI has emerged as a transformative force in industrial AI. Its no-code platform, already deployed across over 1,000 production lines worldwide, serves sectors like automotive, consumer goods, medical devices, and steel, helping factories cut defects and boost efficiency.

For non-Indian companies, Frinks AI’s rapid growth presents significant opportunities—especially for OEMs and automation players seeking reliable, scalable visual inspection technologies. The company’s foundational vision models, designed to overcome the limitations of rule-based systems, offer global manufacturers an AI-driven edge in maintaining high-quality standards. With plans to expand into the US and forge international partnerships, Frinks AI is poised to play a pivotal role in reshaping smart manufacturing worldwide.

https://cio.economictimes.indiatimes.com/news/brand-solution/frinks-ai-a-manufacturing-ai-startup-by-iit-hyderabad-alumni-raises-5-4m-led-by-prime-ventures/121456699?utm_source=Mailer&utm_medium=newsletter&utm_campaign=etcio_news_2025-05-30&dt=2025-05-30&em=cHJlbWppdGhrQGdtYWlsLmNvbQ==

Editor’s Note: Frinks AI, an IIT Hyderabad-founded deep-tech startup, has raised $5.4 million to advance its Vision AI systems, which help manufacturers automate quality control with high accuracy, already deployed across 1,000+ production lines in sectors like automotive, consumer goods, and medical devices. With strong investor backing and expansion plans in the US, its AI-driven inspection technology offers global manufacturers scalable solutions to enhance efficiency and maintain high-quality standards.

India’s Telecom Subscriber Base Hits 1.20 Billion in April 2025 Despite Broadband Dip

India’s telecom sector maintained its growth momentum in April 2025, adding 3.05 million new subscribers and pushing the total subscriber base to 1.20 billion, according to data from the Ministry of Communications. The wireless segment, including 5G Fixed Wireless Access, reached 1.17 billion users, registering a 0.23% monthly increase, with rural areas growing faster than urban centers. The wireline segment also saw a positive uptick, adding 0.37 million new connections to reach 37.41 million users, spurred by a 1% monthly rise. However, total broadband users dipped slightly to 943.09 million, down from 944.12 million in March, showing a marginal -0.11% decline.

Mobile broadband continued to dominate with 896.81 million users, and market leadership remained firmly with Reliance Jio and Bharti Airtel, which together held over 80% of total broadband subscribers based on the latest available data. Jio alone accounted for over 476 million users. For non-Indian companies, this steady expansion—particularly in rural connectivity and 5G deployments—signals increasing opportunities in telecom infrastructure, network solutions, and digital services. The marginal broadband dip may also highlight areas for innovation in customer retention and service quality, especially as India advances its digital public infrastructure.

https://government.economictimes.indiatimes.com/news/digital-india/indias-telecom-sector-grows-with-305-million-new-subscribers-in-april-2025/121507254#:~:text=India%20Adds%203.05%20Million%20New,the%20mobile%20and%20broadband%20segments.

Editor’s Note: India’s telecom sector grew in April 2025, reaching 1.20 billion subscribers with 3.05 million new additions, as the wireless segment expanded—particularly in rural areas—while broadband users saw a slight decline to 943.09 million. Reliance Jio and Bharti Airtel maintained their dominance, and the continued 5G expansion signals opportunities for telecom infrastructure, network solutions, and digital services, despite the broadband slowdown.

Tata Electronics Taps Intel Veteran Tim McIntosh to Lead Semiconductor Ops; Expands Hiring in Malaysia and Singapore

Tata Electronics has appointed Tim McIntosh, a 34-year Intel veteran, as Vice President and Head of Operations and Manufacturing Excellence for its Tata Semiconductor Assembly and Test (TSAT) division. McIntosh’s appointment marks the latest in a series of high-profile hires from Intel, including CEO Randhir Thakur and SVP Reda Masarwa. TSAT is currently being developed as a greenfield project in Morigaon, Assam, with parallel expansion in Karnataka. As part of its growth strategy, Tata Electronics is intensifying its talent acquisition drive in Southeast Asia—particularly in Malaysia and Singapore, which are global hubs for semiconductor manufacturing and packaging services.

For non-Indian companies, Tata’s aggressive hiring and expansion signal India’s emerging role as a strategic semiconductor hub. The company’s talent outreach in Malaysia, which controls 13% of global chip packaging and testing, and Singapore, responsible for 10% of global chip production, reflects a deliberate effort to tap into established global expertise. Tata’s efforts to build a high-tech semiconductor supply chain in India present collaboration, supply chain integration, and investment opportunities for global chipmakers, equipment manufacturers, and engineering service providers looking to diversify operations or enter the Indian market.

https://economictimes.indiatimes.com/tech/technology/tatas-rope-in-intel-veteran-tim-mcintosh-to-steer-assam-chip-assembly-plant/articleshow/121397234.cms?from=mdr

Editor’s Note: Tata Electronics has appointed Intel veteran Tim McIntosh as VP of Operations and Manufacturing Excellence for its TSAT division, strengthening its leadership alongside CEO Randhir Thakur and SVP Reda Masarwa. As TSAT develops in Assam and Karnataka, Tata is expanding hiring in Malaysia and Singapore—key global semiconductor hubs—to tap into established expertise. This signals India’s growing role as a strategic semiconductor hub, offering collaboration and investment opportunities for global chipmakers and equipment manufacturers.