India Urged to Forge Partnerships with Taiwan and Japan to Boost Semiconductor
India should deepen its collaborations with Taiwan and Japan to strengthen its semiconductor
industry, according to a report by Elara Securities. The report notes Taiwan’s dominance in
global semiconductor manufacturing, with 78% of the world’s fab production and over 312
Taiwanese firms leading the sector. However, despite India’s government incentives, Taiwanese
semiconductor giants like TSMC have shown little interest in investing in the country, partly due
to geopolitical tensions. Taiwan’s companies are instead focusing on expanding in the U.S.,
Japan, and Europe, while Japan is training Indian workers in semiconductor technologies.
The report highlights the recent partnership between Tata Group and Taiwan’s Powerchip
Semiconductor Manufacturing Corporation (PSMC) to build a 28-nanometer fab plant as a
positive step for India’s fledgling semiconductor ecosystem. It also calls for India to improve its
infrastructure, intellectual property protection, and regulatory framework to attract global
investments. With domestic demand for semiconductor chips expected to exceed $100 billion by
2030, India has the potential to position itself as a non-China alternative amid shifting global
trade dynamics.
https://manufacturing.economictimes.indiatimes.com/amp/news/hi-tech/india-urged-to-deepen-
ties-with-taiwan-japan-for-semiconductor-growth-report/113363284
Editor’s Note: India is encouraged to strengthen its semiconductor industry by partnering
with Taiwan and Japan, as highlighted in a report by Elara Securities. While Taiwan
dominates global manufacturing, companies like TSMC have been hesitant to invest in
India due to geopolitical issues, focusing instead on the U.S. and Europe. However, India’s
recent collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation
represents a promising step forward, and the country must enhance its infrastructure and
regulatory framework to attract more global investments.
India’s GCC Count Reaches 1,700 in FY24, Revenue Surges 40% to $64.6 Billion:Nasscom-Zinnov Report
The number of global capability centres (GCCs) in India rose to 1,700 by the end of fiscal year
2024, generating $64.6 billion in export revenue, a 40% increase from $46 billion in FY23,
according to a Nasscom-Zinnov report. The GCC sector now employs over 1.9 million people,
up from 1.66 million in the previous fiscal year. The report highlights India as the “GCC Capital
of the World,” with 17% of the global technology capability centres based in the country, and
projects that by 2030, the sector’s revenue could grow to $99-105 billion with a workforce of up
to 2.8 million.
While large enterprises initially drove the growth of GCCs, mid-market enterprises and global
unicorns have increasingly set up centres in India. Around 40 global unicorns now maintain
GCCs in the country. Additionally, more than 220 GCC units are located in Tier-II and Tier-III
cities like Ahmedabad, Kochi, and Coimbatore. The report also emphasizes the growing role of
women in leadership, with over 1,100 women leaders in global roles within India-based GCCs.
The GCC ecosystem is also becoming key in fostering innovation, sustainability, and localized
market solutions.
https://economictimes.indiatimes.com/tech/technology/indias-gcc-count-rises-to-1700-in-fy24-
revenue-up-40-at-64-6-billion-
report/articleshow/113249180.cms?_gl=11hnnh7u_gcl_auMTg1MzE5MzQxNC4xNzI2NDU 3ODA2_gaMTM4MDAwNjY1MS4xNzI2NDU3NjY2_ga_WZ3Z4GGVRC*MTcyNjY1Mz
E5MS4zLjEuMTcyNjY1NTk0Mi41Ni4wLjA.&_ga=2.80960407.1475751949.1726653190-
1380006651.1726457666&from=mdr
Editor’s Note: India’s global capability centres (GCCs) reached 1,700 by the end of fiscal
year 2024, generating $64.6 billion in export revenue—an impressive 40% increase from
the previous year. With a growing workforce and a notable presence of global unicorns and
mid-market enterprises, India is positioned as the “GCC Capital of the World,”
anticipating revenue growth to $99-105 billion by 2030.
Foxconn-HCL Joint Venture to Set Up Semiconductor Assembly Unit in Uttar Pradesh
Taiwan’s Foxconn Technology Group and India’s HCL Group are planning to establish an
outsourced semiconductor assembly and testing (OSAT) unit in Uttar Pradesh, according to a
report by Livemint. Foxconn will hold a 40% stake in the joint venture, with an investment of
$37.2 million. The companies aim to strengthen India’s semiconductor ecosystem, with Foxconn
deploying its build-operate-localize (BOL) model to support local communities. The unit is
expected to be located near the upcoming Jewar airport in Noida, with state authorities already
allotting 30 acres of land for the project.
The venture, which is still in the early stages with a non-binding memorandum of understanding,
could mark Uttar Pradesh’s first semiconductor project, pending central government approval.
The location was chosen due to HCL’s strong presence in Noida, providing the company with a
home base advantage. This development comes amid increasing interest in India’s
semiconductor sector, with the government receiving nine proposals for semiconductor fabs and
OSAT units following Micron Technology’s $825 million investment in the country./
https://swarajyamag.com/news-brief/foxconn-hcl-joint-venture-likely-to-set-up-semiconductor-
assembly-unit-in-uttar-pradesh-report
Editor’s Note: Foxconn Technology Group and India’s HCL Group are planning to
establish an outsourced semiconductor assembly and testing (OSAT) unit in Uttar Pradesh,
with Foxconn holding a 40% stake and investing $37.2 million. Located near the upcoming
Jewar airport in Noida, the venture aims to enhance India’s semiconductor ecosystem and
leverage HCL’s local presence, although it is still awaiting central government approval.
This initiative follows a surge in interest in India’s semiconductor sector, highlighted by
multiple proposals for semiconductor fabs and OSAT units after Micron Technology’s
significant investment.
Yotta, Nasscom, and Telangana AI Mission Launch Shambho Accelerator for Cloud & AI
Startups
Yotta Data Services, in collaboration with Nasscom AI and the Telangana AI Mission, has
launched the Shambho Accelerator Program to support Indian startups specializing in cloud and
AI technologies. The program will provide selected startups with access to up to $200,000 in
credits for Shakti Cloud, India’s fastest AI-HPC supercomputer, along with mentorship, technical
support, and business networking opportunities. By offering access to state-of-the-art AI
infrastructure and training, Yotta aims to empower startups to develop innovative solutions in
fields such as cloud computing, data science, and high-performance computing.
Sunil Gupta, Co-founder & CEO of Yotta Data Services, highlighted that the initiative is part of
Yotta’s mission to democratize supercomputing for Indian startups, enhancing India’s AI
innovation and contributing to the nation’s $5 trillion economy goal. Sangeeta Gupta, Senior VP
at Nasscom, emphasized the importance of programs like Shambho in equipping AI startups with
the resources needed to succeed in the rapidly growing AI sector. The accelerator also aligns
with India’s growing reputation as a global research and development hub, particularly in
emerging technologies such as AI, blockchain, IoT, and robotics.
https://yotta.com/media/press-release-yotta-nasscom-and-telangana-ai-mission-launch-shambho-
accelerator-program-for-indian-startups/
Editor’s Note: Yotta Data Services, in partnership with Nasscom AI and the Telangana AI
Mission, has launched the Shambho Accelerator Program to support Indian startups in
cloud and AI technologies, offering up to $200,000 in credits for access to advanced AI
infrastructure. This initiative aims to democratize supercomputing for startups and bolster
India’s position as a global hub for research and development in emerging technologies,
contributing to the nation’s $5 trillion economy goal.
Indian Scientists Develop ‘Brain on a Chip’ Technology, Paving Way for AI Revolution
Researchers at the Indian Institute of Science (IISc) have developed a groundbreaking “brain on
a chip” technology that mimics the human brain’s ability to store and process data, a leap forward
in neuromorphic computing. Capable of handling 16,500 states within a molecular film, the new
technology could dramatically improve AI hardware, bringing complex tasks like training large
language models (LLMs) to personal devices with greater energy efficiency. The research, led by
Sreetosh Goswami from IISc’s Centre for Nano Science and Engineering, in collaboration with
Texas A&M University and the University of Limerick, was published in Nature. This system
could address key challenges in AI development, such as hardware limitations and energy
inefficiency.
The breakthrough is significant for India’s tech landscape, with Prof Navakanta Bhat
emphasizing its potential impact on the India Semiconductor Mission and national technological
leadership. The IISc team is now working on creating an integrated neuromorphic chip, with
plans to translate the innovation into a system-on-a-chip for industrial and consumer
applications. Supported by the Ministry of Electronics and Information Technology, the fully
homegrown effort could position India as a leader in AI hardware development on the global
stage.
https://www.msn.com/en-in/money/news/indian-scientists-develop-brain-on-a-chip-tech-say-
can-democratise-ai/ar-AA1qqEZX?ocid=finance-verthp-
feeds&apiversion=v2&noservercache=1&domshim=1&renderwebcomponents=1&wcseo=1&bat
chservertelemetry=1&noservertelemetry=1
Editor’s Note: Researchers at the Indian Institute of Science (IISc) have developed
innovative “brain on a chip” technology that mimics human brain functions, potentially
revolutionizing AI hardware with enhanced energy efficiency and the ability to handle
complex tasks like training large language models on personal devices. This significant
advancement, supported by the Ministry of Electronics and Information Technology,
positions India to play a pivotal role in AI hardware development and bolsters the
country’s aspirations within the India Semiconductor Mission.
NXP Semiconductors to Invest Over $1 Billion in India, Doubling R&D Efforts
NXP Semiconductors announced plans to invest more than $1 billion in India, significantly
boosting its research and development efforts in the country. Speaking at the Semicon India
conference near New Delhi, CEO Kurt Sievers said the Dutch company would double its R&D
initiatives in the coming years. With four semiconductor design centres and 3,000 employees in
India, NXP is in talks with industries such as automotive to expand its footprint in the country, as
India looks to strengthen its presence in the global semiconductor industry.
India, aiming to rival global chipmaking powerhouses like Taiwan, has allocated $10 billion to
foster its semiconductor ecosystem. Prime Minister Narendra Modi emphasized the country’s
growing role, highlighting that India contributes 20% of the global chip design talent and is
preparing a semiconductor workforce of 85,000 professionals. Major players like Nvidia, AMD,
and Micron have also expanded their presence in India, further underscoring the nation’s rising
importance in the global semiconductor landscape.
https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/nxp-semiconductors-
invest-more-us1-billion-india-it-boosts-rd-efforts
Editor’s Note: NXP Semiconductors plans to invest over $1 billion in India, significantly
enhancing its research and development efforts while doubling its initiatives in the coming
years. This investment aligns with India’s ambition to strengthen its semiconductor
ecosystem, with the government allocating $10 billion to compete with global chipmaking
leaders and highlighting the country’s contribution of 20% to global chip design talent.
Tata Electronics Partners with Tokyo Electron to Boost India’s First Semiconductor Fab
Tata Electronics has signed a Memorandum of Understanding (MoU) with Japanese chipmaking
equipment manufacturer Tokyo Electron (TEL) to advance India’s semiconductor ecosystem.
The collaboration focuses on front-end fabrication and back-end packaging technologies for
Tata’s semiconductor fab in Dholera, Gujarat, and its assembly and testing facility in Jagiroad,
Assam. The partnership will also involve workforce training on TEL equipment and support
ongoing R&D initiatives, positioning India to meet global demand for semiconductor
technologies in key sectors such as autonomous mobility, green energy, and AI.
With a Rs 91,000 crore investment, Tata Electronics’ Dholera facility aims to produce 50,000
wafers per month by December 2026. Additionally, the Rs 27,000 crore assembly and testing
facility in Assam, expected to begin operations by mid-2025, will be India’s first semiconductor
unit in the Northeast. Both projects are set to create over 27,000 jobs, contributing to India’s
strategic goal of becoming a global semiconductor manufacturing hub.
https://swarajyamag.com/technology/tata-electronics-enlists-tokyo-electron-in-push-for-indias-
first-fab
Editor’s Note: Tata Electronics has partnered with Tokyo Electron to enhance India’s
semiconductor ecosystem, focusing on front-end fabrication and back-end packaging
technologies for its upcoming semiconductor fab in Dholera, Gujarat. This collaboration,
which includes workforce training and R&D support, aims to produce 50,000 wafers per
month by December 2026, contributing to Tata’s strategic investments of Rs 91,000 crore
and Rs 27,000 crore for facilities in Dholera and Assam, respectively, while creating over
27,000 jobs.
Government Streamlines Mergers for Overseas Startups into Indian Arms; Nazara Acquires Stake in Stan for $2.2 Million
The Indian government has fast-tracked the approval process for overseas-headquartered startups
merging with their Indian subsidiaries by eliminating the need for National Company Law
Tribunal (NCLT) clearance. This move will simplify the transition for Indian startups based
abroad seeking to move back to India. The Ministry of Corporate Affairs has notified the
Companies (Compromises, Arrangements & Amalgamations) Amendment Rules, 2024, set to
take effect on September 17, further boosting India’s startup ecosystem.
In other news, gaming company Nazara Technologies has acquired a 15.86% stake in
blockchain-based esports startup Stan for $2.2 million through a secondary transaction. Nazara’s
CEO Nitish Mittersain said the investment aligns with their vision to lead in the growing esports
space. Stan had previously raised $2.7 million from investors earlier this year, cementing its
position as a key player in mobile-first gaming and fan engagement.
https://www.cnbctv18.com/business/startup/startup-digest-reverse-flipping-nazara-stake-stan-
glas-trust-plea-insolvency-proceedings-byjus-inmobi-19474814.htm
Editor’s Note: The Indian government has streamlined the merger process for overseas
startups with their Indian arms by removing the requirement for National Company Law
Tribunal (NCLT) approval, effective September 17, 2024, thereby facilitating smoother
transitions for startups relocating to India. In a related development, Nazara Technologies
acquired a 15.86% stake in blockchain-based esports startup Stan for $2.2 million, aligning
with its strategy to strengthen its presence in the growing esports sector.
CCI Introduces New Rules for Digital Mergers and Acquisitions in India
Effective from September 10, mergers and acquisitions involving digital firms with substantial
operations in India must now seek approval from the Competition Commission of India (CCI).
Under the new CCI (Combinations) Regulations, 2024, deals surpassing ₹2,000 crore or
involving firms with at least 10% of global users or gross merchandise value in India will require
regulatory clearance. Non-digital firms with annual gross merchandise value or turnover
exceeding ₹500 crore in India will also be subject to mandatory approval, ensuring smaller
transactions remain exempt from scrutiny.
The regulations, aimed at capturing significant digital sector deals that could previously evade
oversight, apply to both signed and ongoing transactions. Legal experts have highlighted the
need for parties to carefully assess deal values, including direct, indirect, and deferred payments
made within two years of the relevant date. The new rules also reduce the review period for
mergers from 210 days to 150 days, streamlining the regulatory process for businesses.
requires approval for mergers and acquisitions involving digital firms with significant
operations in the country, specifically for deals exceeding ₹2,000 crore or involving
companies with at least 10% of global users or gross merchandise value in India. The new
CCI (Combinations) Regulations, 2024, also apply to non-digital firms with annual gross
merchandise value or turnover above ₹500 crore, ensuring that smaller transactions
remain exempt from scrutiny. Additionally, these regulations streamline the review process
by reducing the merger review period from 210 days to 150 days, allowing businesses to
navigate regulatory requirements more efficiently.
Jabil to Invest ₹2,000 Crore in Tiruchirappalli, Expanding Apple’s Supplier Ecosystem in
India
In a significant boost to India’s electronics manufacturing sector, American multinational Jabil
Inc is set to invest ₹2,000 crore to establish a facility in Tiruchirappalli, Tamil Nadu. This move
is expected to create 5,000 jobs and strengthen the state’s position as a leading electronics
manufacturing hub. Jabil, a major supplier for Apple, Cisco, and HP, joins 14 Apple suppliers
operating in India, seven of which are already based in Tamil Nadu. This investment is part of
Apple’s broader strategy to ramp up production in India through key suppliers like Foxconn,
Pegatron, and Tata Electronics.
Tamil Nadu has emerged as India’s top electronics exporter, with exports reaching $9.56 billion
in 2023-24, largely driven by the surge in iPhone production. The state’s electronics
manufacturing capacity is being further bolstered by global players adopting the China Plus One
strategy, which encourages diversification outside China. With the establishment of Jabil’s new
plant, the region surrounding Tiruchirappalli is expected to become Tamil Nadu’s third major
electronics cluster, creating economic growth and employment opportunities across central
districts.
https://www.business-standard.com/industry/news/apple-supplier-jabil-to-set-up-rs-2-000-crore-
mfg-unit-in-tiruchirapalli-124091000078_1.html
Tiruchirappalli, Tamil Nadu, to establish a facility that will create 5,000 jobs and enhance
the region’s status as a key electronics manufacturing hub. As a major supplier for Apple,
Jabil joins a growing list of 14 Apple suppliers in India, seven of which are already based in
Tamil Nadu, supporting Apple’s strategy to increase production in the country. This
investment aligns with Tamil Nadu’s emergence as India’s top electronics exporter, with a
focus on diversifying manufacturing outside China, and will likely transform the area into
the state’s third major electronics cluster.