Weekly News Updates-India July 26 to Aug 1

Semicon component manufacturers to launch operations in India; 70 startups cut over 17k jobs; Semiconductor DLI Scheme extended to Larger Foreign Companies; Lithium mining by private companies; AMD to invest $400 million in India by 2028; Foxconn and TN on an agreement for Rs. 1.6 crore; Synopsys to establish its center in Bhubaneswar; Disco corp. to open a center in India; India's premium smartphone shipments increased by 112%; PLI 2.0 application deadline extended till August 30

Following Micron, semiconductor component manufacturers to launch operations in India
跟隨美光科技腳步 更多半導體零件商將於印度設廠

The semiconductor ecosystem is starting to become more locally oriented. At least 4 to 5 of the leading suppliers of parts and materials to the semiconductor industry are expected to follow Micron revealed its plans to establish a packaging and testing facility in India, according to industry sources.

Simmtech and Air Liquide, two companies that supply printed circuit boards and high-purity industrial gases for chip production, respectively, are in discussions with the government to begin operations in India.

Source: https://www.thehindubusinessline.com/info-tech/after-micron-semiconductor-component-players-to-set-up-india-operations/article67139311.ece

AMD intends to invest $400 million in India by 2028

AMD plans to invest about $400 million there over the course of the next five years and establish its largest design facility in Bengaluru, India’s southern city.

In Gujarat, AMD CTO Mark Papermaster outlined the chipmaker’s investment ambitions on Friday at the SemiconIndia 2023 conference.

The addition of this new facility, which has a floor size of 500,000 square feet, would increase the total number of AMD offices in India to 10, including establishments in Delhi, Gurugram, Hyderabad, and Mumbai.

Source: https://techcrunch.com/2023/07/27/amd-india-investment/

Synopsys, leader in global chip design, to establish its center in Bhubaneswar

Synopsys, a market leader in Electronics Design and Automation (EDA) with operations in over 25 nations, revealed its ambitions to build a design-focused facility in Bhubaneswar.

In a statement, CMO Odisha stated that the facility, which will gradually expand to 300 chip design engineers performing high-tech roles, will comprise members from top Synopsys teams such as Hardware Analytics and Test (HAT) and Hardware Development Group(HDG), including HDG Analogue and HDG Design/Verification.

They emphasized how the state provides the most extensive package of incentives to both fab and fabless units through its Semiconductor Manufacturing and Fabless Policy, which has obtained Cabinet approval. It also included information about the future O-Chip program, which would offer training assistance and design infrastructure to researchers, startups, and companies.

Source: https://www.business-standard.com/india-news/global-chip-design-leader-synopsys-to-set-up-its-centre-in-bhubaneswar-123073000010_1.html

Disco corp., Japan chip equipment supplier, to open center in India: Nikkei reports
日商Disco crop將在印度設廠

According to a business executive quoted in the Nikkei, Japan’s Disco Corp (6146.T) intends to construct a center in India to service its clients and serve as a foundation for marketing to the nation’s semiconductor industry.

According to the report, the supplier of chipmaking equipment would think about establishing an applications laboratory in India where test cuts and other experimental operations are carried out upon customer request.

Source: https://www.reuters.com/technology/japan-chip-equipment-supplier-disco-set-up-center-india-nikkei-2023-07-31/


70 startups cut over 17k jobs in the first half of 2023

According to information obtained from the staffing and recruitment company CIEL HR, more than 17,000 employees were let go by roughly 70 startups in the first half of 2023. Startups, which normally rely on outside funding for growth, declined after being compelled to reduce expenses and save money due to a reduction in investor funding.

According to the data, sectors that have experienced layoffs include e-commerce (which includes areas like grocery, baby care, and personal care), fintech, edtech, logistics tech, and health-tech. Jobs have been cut at businesses, including unicorns like Meesho, Unacademy, Swiggy, and ShareChat. Byju’s, an edtech company that has been dealing with a number of difficulties, has fired 500–1,000 workers this year on its own.

According to estimates by PwC, funding for startups decreased to $3.8 billion in the first half of 2023 from $18.3 billion in the same time the previous year, showing a year over year loss of roughly 80%.

Source: https://timesofindia.indiatimes.com/business/india-business/70-startups-cut-over-17k-jobs-in-1st-half-of-2023/articleshow/102258572.cms?from=mdr


Government to extend the Semiconductor DLI Scheme to Larger Foreign Companies: MoS IT
印度政府將原專屬本土新創的半導體設計補助金 開放給海外企業申請

Rajeev Chandrasekhar, the minister of state for electronics and IT, announced on Saturday that the government would expand the design-linked incentive (DLI) scheme for semiconductor companies to include larger enterprises, both foreign and Indian. 

$200 million has been put aside by the government to support semiconductor design companies’ innovative efforts. Seven firms have received financial approval thus far for products ranging from image sensors and vector processing to artificial intelligence (AI). The scheme is a component of the government’s $10 billion India semiconductor mission, which was launched in 2021.

Startups and Micro, Small, and Medium Enterprises (MSMEs) as outlined by the Department for Promotion of Industry and Internal Trade (DPIIT) are eligible to apply for the incentives, per the present scheme’s rules. The plan aims to design integrated circuits, chipsets, system on chips (SoCs), and processor cores while also producing local intellectual property in the semiconductor industry.

Source: https://www.business-standard.com/economy/news/govt-to-expand-semiconductor-dli-scheme-to-larger-foreign-firms-mos-it-123072900464_1.html


India provides opportunities for private companies to advance their plans for lithium mining

On Friday during the monsoon session, the Lok Sabha approved the Mines and Minerals (Development and Regulation) Amendment Bill. It makes it possible for private companies to mine essential minerals like lithium, which was previously solely available to state-owned companies.

The bill said that the mineral industry needed to undergo additional changes, especially to increase the exploration and mining of crucial minerals that were necessary for the nation’s economic growth and national security.

It suggests amending the law to restrict exploration licenses to deep-seated and vital minerals. This license will be awarded through an auction in order to conduct operations for prospecting and reconnaissance.

Source: https://cfo.economictimes.indiatimes.com/news/india-opens-doors-for-private-cos-to-give-lithium-mining-ambitions-a-shot-in-the-arm/102203192?utm_source=flipboard&utm_content=other


Foxconn and TN agree on an agreement for Rs. 1.6 crore for a mobile component plant

The largest electronics company in the world, Foxconn, and Tamil Nadu (TN) signed a contract on Monday to construct a mobile component manufacturing plant in the Kancheepuram district. The facility is expected to cost Rs 1,600 crore and employ 6,000 people.

In accordance with its plan to develop an EV production facility in India this year, the global giant is also in discussions with TN over the electric vehicle (EV) market.

Foxconn Group Chairman Young Liu stated to the media in Chennai following the signing of the contract with TN that the company has not yet decided on the site and is currently developing its plans to increase semiconductor and chip manufacturing capacity in India.

Source: https://www.business-standard.com/companies/news/foxconn-signs-agreement-with-tamil-nadu-for-rs-1-600-crore-electronics-unit-123073100323_1.html


PLI 2.0 application deadline extended till August 30
PLI 2.0

The Production-Linked Incentive (PLI) Scheme 2.0 for IT Hardware application deadline has been extended by the Ministry of Electronics and Information Technology. The new application date for the scheme is August 30, 2023.

On May 29, 2023, the PLI scheme for IT hardware was notified via government notification with a Rs.17,000 crore budget outlay. The plan aims to increase domestic large-scale production of IT gear in the nation.

The PLI Scheme 2.0 for IT Hardware is expected to result in the broadening and deepening of the manufacturing ecosystem by encouraging the localization of components and sub-assemblies and allowing for a longer duration to develop the supply chain within the country.

Source: https://www.business-standard.com/india-news/govt-extends-application-deadline-for-it-hardware-pli-2-0-to-august-30-123073100716_1.html


India’s premium smartphone shipments increased by 112% YoY in Q2

In Q2 2023, the number of smartphones shipped in India decreased by 3% year over year (YoY), down from 19% in Q1. Pent-up demand and improved macroeconomic conditions helped the market conclude at a less than anticipated decline, despite the fact that this was the fourth consecutive quarter decline.

According to a blog post by Counterpoint, a worldwide analysis company, the premium category in the country rose by 112% YoY in Q2 2023 and contributed a record 17% to overall shipments. For the third consecutive quarter, Samsung outperformed Apple in the premium market with an 18% share, despite Apple continuing to dominate the ultra-luxury segment with a 59% share. India becomes one of its top five markets.

Source: https://www.thehindu.com/sci-tech/technology/indias-premium-smartphone-shipments-grew-112-yoy-in-q2-2023/article67145424.ece