Semiconductor Chip Manufacturing Unit to be Established in Mysuru’s Kadakola
Mysuru is set to become a hub for high-tech semiconductor production as a new chip manufacturing unit will be established in Kadakola. This significant development was announced by Ashok, CEO of the Hassan Mega Food Park, during a press conference at the Pathrakartara Bhavan. After previously missing out on a semiconductor project, Mysuru secured this opportunity following successful negotiations with a Japan-based company. The project will be officially finalized during the Global Investors Meet in Bengaluru on February 12 and 13.
The new semiconductor unit is expected to boost Mysuru’s industrial landscape, bringing valuable investments and numerous job opportunities. This advancement positions the city to play a critical role in advanced manufacturing, significantly contributing to the region’s economic growth.
https://starofmysore.com/semiconductor-chip-unit-to-come-up-at-kadakola/amp
Editor’s Note: Mysuru is set to become a key hub for semiconductor production with the establishment of a new chip manufacturing unit in Kadakola, following successful negotiations with a Japan-based company. The project, which will be finalized at the Global Investors Meet in February, promises to boost the city’s industrial landscape, bringing investments and creating job opportunities.
Dixon Technologies Launches Subsidiary for IT Hardware Manufacturing
Dixon Technologies, a prominent Indian electronics manufacturer, has announced the formation of a new wholly-owned subsidiary, Dixon Teletech, to focus on producing IT hardware components. The incorporation took place on September 28, with subscription funds paid by the parent company on November 4. According to a BSE filing, Dixon Teletech will handle the manufacturing and distribution of a range of IT products, including hardware components and related equipment. The company has subscribed to 10,000 equity shares of the new subsidiary, valued at INR 10 each, amounting to a cash consideration of INR 1 Lakh.
This strategic move aligns with Dixon’s plan to expand its footprint in IT hardware, bolstered by the Centre’s PLI 2.0 scheme for hardware manufacturing. The company has secured contracts with top laptop brands, including HP, Lenovo, Acer, and Asus, and aims for revenue of INR 3,500 Cr by FY26 and INR 48,000 Cr over the next six years. This development comes as India prepares for a shift in import regulations for IT products starting January 2025, prompting global tech companies to establish local manufacturing facilities.
Editor’s Note: Dixon Technologies has launched a new wholly-owned subsidiary, Dixon Teletech, to focus on manufacturing IT hardware components. The subsidiary will produce a range of IT products and related equipment, with an initial investment of INR 1 Lakh, aligning with Dixon’s strategy to expand in the IT hardware sector under the government’s PLI 2.0 scheme. The company, which has secured contracts with major laptop brands, aims to generate INR 3,500 Cr in revenue by FY26 and INR 48,000 Cr over the next six years, as India moves toward local IT product manufacturing.
Tata and Airbus Launch C295 Aircraft Assembly Facility in Vadodara
In a landmark achievement for India’s aerospace and defence sector, Tata Advanced Systems Limited (TASL) and Airbus inaugurated a state-of-the-art Final Assembly Line (FAL) complex for the C295 aircraft in Vadodara, Gujarat. The facility, inaugurated by Prime Minister Narendra Modi and Spanish President Pedro Sánchez Pérez-Castejón, marks the first private sector aircraft assembly line in India. This move supports the ‘AatmaNirbhar Bharat’ initiative, with 40 of the 56 aircraft ordered by the Indian Air Force (IAF) to be assembled domestically by TASL, while 16 will be delivered in ‘fly-away’ condition from Spain.
Set to deliver its first ‘Make in India’ C295 aircraft by September 2026, the Vadodara facility is poised to enhance India’s defence manufacturing capabilities and economic growth. Components for the assembly are already being produced at the Main Component Assembly facility in Hyderabad, with parts now shipped to Vadodara. The project will leverage over 37 local suppliers and produce more than 85% of the structural work in India. This initiative further cements Airbus’ commitment to India as a strategic manufacturing and innovation hub, contributing to job creation and industrial development.
Editor’s Note: Tata Advanced Systems and Airbus have inaugurated India’s first private sector aircraft assembly line for the C295 aircraft in Vadodara, Gujarat, supporting the AatmaNirbhar Bharat initiative. The facility will assemble 40 of the 56 aircraft ordered by the Indian Air Force, with the first ‘Make in India’ C295 set for delivery by September 2026, boosting India’s defence manufacturing and creating significant local job opportunities.
Big IT Firms Acquire Indian Startups to Boost AI and Tech Capabilities Amid Funding Crunch
In a strategic move to enhance their technological prowess, major IT firms like Accenture, Infosys, and IBM, alongside midcap companies such as Persistent Systems, Cyient, and Global Logic, are acquiring Indian startups specializing in AI, semiconductors, data analytics, and space technology. This wave of acquisitions comes as the startup ecosystem grapples with a funding crunch. Industry analysts note that these companies are preparing for an anticipated revival in discretionary technology spending by securing access to cutting-edge innovations.
Notably, IBM recently acquired Bengaluru-based SaaS startup Prescinto, while Cyient bought a 27.3% stake in U.S.-based Indian semiconductor-focused startup Azimuth AI for $7.25 million. Persistent Systems announced plans to acquire data privacy management firm Arrka for ₹14.4 crore, and Infosys committed up to ₹17 crore ($2 million) to space-tech company GalaxEye Space Solutions as part of its Innovation Fund, signaling a strategic effort to diversify and strengthen their technological offerings.
Editor’s Note: Major IT firms like Accenture, Infosys, and IBM, along with midcap companies such as Persistent Systems and Cyient, are acquiring Indian startups to boost their capabilities in AI, semiconductors, data analytics, and space technology amid a funding crunch in the startup ecosystem. Notable acquisitions include IBM’s purchase of SaaS startup Prescinto, Cyient’s stake in Azimuth AI, and Persistent’s planned acquisition of Arrka. These moves reflect a strategic effort to tap into cutting-edge innovations as companies prepare for a potential rebound in technology spending.
Apple’s iPhone Exports from India Surge 33%, Driven by Tamil Nadu’s Foxconn Unit
Apple’s iPhone exports from India surged by 33% between April and September 2024 compared to the same period last year, reaching $6 billion. This impressive growth was spearheaded by the company’s Foxconn unit in Tamil Nadu, which contributed approximately half of the total exports. Tata Electronics, after acquiring Wistron Corp.’s unit, exported $1.7 billion worth of iPhones from its Karnataka facility during the same timeframe, showcasing Apple’s expanded local manufacturing capacity bolstered by state and central government incentives.
Tamil Nadu has solidified its position as a key hub for Apple’s supply chain, hosting major suppliers including Foxconn, Pegatron, Tata Electronics, and Jabil. Additionally, companies like Salcomp and Corning contribute to Apple’s robust production ecosystem in the region. Apple, which started manufacturing in India in 2017, now produces the latest iPhone 16 series locally, aligning with its strategic shift from China amidst geopolitical tensions. The tech giant has also ramped up its retail presence with two new stores in Delhi and Mumbai and plans for further expansion.
Editor’s Note: Apple’s iPhone exports from India grew by 33% to $6 billion between April and September 2024, with Foxconn’s Tamil Nadu unit accounting for about half of the total. Tata Electronics, following its acquisition of Wistron’s unit, exported $1.7 billion worth of iPhones from its Karnataka facility, highlighting the expansion of Apple’s local manufacturing capacity. With key suppliers in Tamil Nadu and production of the latest iPhone 16 series, Apple continues to shift production from China while strengthening its retail presence in India.
WTO Delays Ruling on India’s ICT Import Duties Until April 2025
The World Trade Organization (WTO) has agreed to delay its ruling on India’s import duties on certain information and technology products until April 2025, following requests from both India and Chinese Taipei. The dispute, which involves tariffs on high-tech goods such as telephones and data transmission machines, was originally initiated by Chinese Taipei in 2019. India has argued that these products fall outside the WTO’s Information Technology Products (ITA-2) agreement, which it is not a part of, while the WTO panel had ruled in April 2023 that India’s duties violate global trade norms.
The WTO’s dispute settlement body had previously accepted five requests to postpone the adoption of the ruling, as both parties continue bilateral consultations to resolve the matter. The ruling, which would require India to implement changes within 60 days, is now deferred to allow more time for negotiations. This delay comes amid ongoing challenges within the WTO’s appellate body, which is not currently functioning due to disagreements among member countries over appointments.
Editor’s Note: The WTO has agreed to delay its ruling on India’s import duties on certain IT products until April 2025, following requests from India and Chinese Taipei as they continue bilateral discussions to resolve the dispute. The ruling, which found India’s tariffs violated global trade norms, had been deferred multiple times, allowing more time for negotiations amid ongoing issues with the WTO’s appellate body.