ISA WINWire April 24 - 29 2011


Emerging markets boost US chip industry

Source: Chris Nuttall, Financial Times, April 24 2011http://www.ft.com/

The US chip industry is looking forward to a strong second half of the year after shaking off the effects of the Japanese earthquake and tsunami, weak economic conditions and gloomy analyst predictions. The tablet segment is not cannibalising the PC market to the extent many feared, while increased corporate buying and the strength of demand in emerging markets have been highlighted by semiconductor companies reporting earnings in the past week.

TSMC head sees limit to semiconductor development this decade

Source: Focus Taiwan News Channel, April 25 2011 http://focustaiwan.tw/

The head of the world's largest contract chip maker predicted Monday that after years of major advances, technological development in the global semiconductor industry may soon run its course. Taiwan Semiconductor Manufacturing Company (TSMC) Chairman Morris Chang said at a global technology summit in Taipei that most semiconductor makers see the era of constant technology breakthroughs lasting another six to eight years before reaching their limits. After that, he said, new applications, such as power-saving and video products will emerge as new development trends.

How to boost manufacturing

Source: Ajay Shankar, The Economic Times, April 25 2011 http://articles.economictimes.indiatimes.com/

STo boost manufacturing, two policy areas deserve attention, in addition to infrastructure, skills and the ease of doing business - restricted FDI in retail and undirected government procurement. In these, we do not have any international commitments and have policy space. There has been public discussion on permitting FDI limits in multi-brand retail. This is expected to facilitate development of the cold chain, increase efficiency in movement from farm to market and reduce the gap between what the farmer gets and what the consumer pays, which in India is much too high. Investments both at the farm level as well in the supply chain and food processing would be substantial and geographically dispersed. Apprehensions regarding the impact on small stores could be mitigated by initially permitting a limited number of outlets and that too only in the metros and tier-1 cities. Further calibrated opening up could be considered after review of experience.

Apple moves to No. 1 in handset revenue

Source: Dylan McGrath, EETimes, April 25 2011 http://www.eetimes.com/

Apple Inc. overtook Finland's Nokia Corp. to claim the top spot in handset revenue in the first quarter, when Apple racked up record sales of its iPhone, according to research and consulting firm Strategy Analytics Inc. Alex Spektor, a senior analyst at Strategy Analytics said in a statement issued by the firm that Strategy Analytics estimates that Apple's wholesale revenue for its iPhone handset division hit $11.9 billion in the first quarter, passing Nokia for the first time. Nokia had first quarter handset revenue of $9.4 billion, Spektor said.

TCS, Infosys, Wipro, HCL duel MNCs for bigger US share

Source: The Economic Times, April 26 2011 http://www.ibef.org/

Looking to reach the $20-billion mark within the next few years, India's top technology firms are readying plans to gain a bigger share of their largest market, US, by aggressively chasing contracts being served by multinational rivals now. At least a dozen analysts ET spoke with over the past week said the top four, TCS, Infosys, Wipro , HCL, will grow their revenues by over 20% during year ending March 2012, helped by renewed demand from the top outsourcing markets of US and Europe.

Defence cluster sees big business

Source: Business Standard, April 26 2011 http://www.ibef.org/

The city’s SME cluster, which has evolved over the past few decades around defence research establishment activities, is getting ready for an all-new business environment provided by the offset policy.Until now, what mattered to a vendor was its ability to fabricate components. Now, global corporations setting foot in India are going beyond this technical aspect, since they have to source 30 per cent of the contract value domestically.

Top25: Semiconductor suppliers in 2010

Source: evertiq, April 26 2011 http://evertiq.com/

Continuing its steady rise in the semiconductor industry, Samsung Electronics Co. Ltd. in 2010 came closer to challenging Intel’s chip market leadership than any company had in more than a decade, states IHS iSuppli. The newly released final market share rankings for 2010 show No. 2-ranked Samsung held 9.2% share of global chip revenue, up from 7.6% in 2009. This put the South Korean electronics giant a mere 4.1 percentage points behind perennial market leader Intel of the United States.

India plans $5 billion fab construction

Source: Kariyatil Krishnadas and Peter Clarke, EE Times, April 27 2011 http://www.eetasia.com/

Hoping to revive its semiconductor manufacturing efforts, India recently unfolded a new blueprint for the construction of two local wafer facilities. The government has proposed the establishment of a committee to identify technologies and investors to lead the effort. Among others, the committee would include an adviser to the prime minister on technology issues, the chairman of the National Manufacturing Competitiveness Council and M.J. Zarabi, former chairman of India's Semiconductor Complex. Along with identifying technologies and potential investors, the committee will recommend the level of government support for the fab project and the mix of grants and subsidies. The panel's recommendations will be delivered by July 31.

Govt must have manufacturing policy, says Sharma

Source: msn News, April 27 2011 http://www.eetimes.com/

Industry Minister Anand Sharma today said it would be a "historic blunder" for the country not to have a national manufacturing policy. He said this in the backdrop of reports of opposition from ministries such as environment and labour on the proposal to relax certain laws in the policy. Sharma made these comments ahead of a meeting on the issue convened by Prime Minister Manmohan Singh on May 4.

Wipro fights attrition with salary hike

Source: CIOL, April 27 2011 http://www.eetimes.com/

IT major Wipro Technologies that employs around 122,385 people, has announced salary hikes effective June 1, 2011, in an effort to retain its manpower. The wage hike is in the range of 12 to 15 per cent for its India-based staff and 3 to 4 per cent for employees working at client locations. As high attrition rate is alarming the IT and BPO majors in the country, Wipro said it is working towards employee retention and keeping the employee spirits high.

India to double expenditure on science research

Source: CIOL, April 27 2011 http://www.ciol.com/

India will double its spending on research and development related to science and technology during the 12th Five Year Plan starting next year, Minister of State for Science and Technology Ashwani Kumar said on Tuesday. "The government is giving a big push to science and technology during the 12th Five Year Plan (from 2012-2017). The expenditure on department of science and technology will be doubled to Rs.150,000 crore amounting to 0.6 per cent of country's GDP (gross domestic product)," he told reporters here. The minister said that being the third largest growing economy of the world, India needs to enhance allocations for science and technology.

IEEE-SA launches India smart grid standards project

Source: EETimes, April 28 2011 http://www.eetindia.co.in/

IEEE-SA launches the P2030, a draft guide for Smart Grid Interoperability of Energy Technology and Information Technology Operation (EETI) with the Electric Power System (EPS) and End-Use Applications and Loads, in India. Interoperability has been one of the key concerns in building a smart grid in India, like in many other regions of the world and the project aims to address this. IEEE-SA's India Standards Interest Group (SIG) announced in February 2011 will work closely with IEEE P2030 Working Group to introduce interoperability standards in India later this year, enabling faster implementation of the smart grid.

India, China leading dynamic Asia's growth: IMF

Source: Arun Kumar, iGovernment, April 28 2011 http://www.igovernment.in/

Led by India and China, growth is expected to reach around 8 per cent in emerging Asia, the International Monetary Fund (IMF) said in its latest Regional Economic Outlook (REO). With both exports and domestic demand fuelling rapid economic growth, economic growth in the Asia and Pacific region is expected to remain robust this year and next, the regional outlook released in Hong Kong said. Growth is expected to be led by India and China, whose economies are presumed to expand by 8 per cent and 9.50 per cent, respectively, in the next two years, noted Anoop Singh, Director of the IMF's Asia & Pacific Department

Global semiconductor revenue hits $299.4 billion in 2010

Source: SiliconIndia, April 28 2011 http://www.siliconindia.com/

Reporting the largest ever one-year increase, total worldwide semiconductor revenue reached $299.4 billion in 2010, an increase of $70.7 billion, or 30.9 percent from 2009, reveals a new Gartner report. However, the industry just fell short of the milestone $300 billion revenue threshold. The top 25 semiconductor suppliers accounted for 69.1 percent of semiconductor industry revenue in 2010, and as a group, memory vendors showed the strongest growth.

India can become economically developed by 2020: Kalam

Source: The Economic Times, April 29 2011 http://economictimes.indiatimes.com/

India can become economically developed by 2020 if it maintains a GDP of 10-11 per cent as there are nine more years to achieve 'Vision 2020' goals, former President A P J Abdul Kalam said. "We have nine more years for 2020 and if we maintain 10-11 percent GDP we will be economically developed," he said before a gathering of prominent Indian businessmen and social leaders at Indian Consulate here. Kalam was speaking about the success of Indian Space Research Organization (ISRO) and his 'Vision 2020' to make India economically developed by 2020 at the banquet organised by Indian Consul General, in Chicago , Mukta Dutta Tomar in his honour earlier this week. He said that India's "economic growth must sustain population growth."


Compiled by ISA Research


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