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ISA WINWire August 12 -19 2011


India plans to boost manufacturing capacity in telecom networks, IT hardware to compete with China

Source: Joji Thomas Philip & Harsimran Julka, The Economic Times, August 12 2011

India plans to undertake a five-pronged strategy to boost its manufacturing capabilities in telecom networks, IT hardware and electronics, and compete directly with China in this space. The telecom and IT departments share the view that major policy changes to kick-start large scale manufacturing in the country can create as many as 100 million jobs - directly and indirectly - by 2025. As the first step, the Centre had invited expressions of interest from both technology companies and investors for setting up two semiconductor fabricators in the country, while also outlining a full package of incentives.

Solar jobs boost U.S. economy

SSource: EETimes, August 12 2011

The year 2010 was a big year for the solar energy industry in the United States. Compared to the measly 2.8 percent GDP growth of the U.S. economy, the solar market grew 67 percent in value, reaching $6 billion last year. In general, U.S. solar companies are adding jobs at a pace that is much faster than the general economy, and employers are highly optimistic regarding their overall revenue growth. In a study released by The Solar Foundation titled "National Solar Jobs Census 2010, the data showed that as of August 2010, the U.S. solar industry employed an estimated 93,500 solar workers, which is roughly double the number of solar workers estimated in 2009.

Venture capital mood cools in Silicon Valley

Source: Richard Waters, VC Circle, August 12 2011

The consumer internet bubble that has been building for the past year in the venture capital world is set to deflate rapidly following the turmoil that has swept through financial markets, according to investors and entrepreneurs in Silicon Valley. While recent stock market debuts such as those of social networking services LinkedIn and RenRen have attracted warnings of a bubble on Wall Street, the signs of financial overheating have been even more acute among private, venture-backed companies at an earlier stage in their development.

China puts the squeeze on Taiwan

Source: Rick Merritt, EETimes, August 12 2011

Taiwan test and measurement vendors complain that mainland competitors with government backing are squeezing them out of the Chinese market. China is putting a competitive squeeze on some of its partners that still use the mainland as a source of low-cost design and manufacturing. Good Will Instrument, a 700-person test and measurement company in Taiwan, is just one of the companies feeling the pinch. Good Will recorded 2010 revenues of $55 million selling spectrum analyzers, signal generators and other gear as much as 20 percent cheaper than big U.S. rivals such as Agilent and Tektronix.

Setbacks may push Europe into a new downturn

Source: Jack Ewing & Julia Werdigier, The New York Times, August 14 2011

Economists may still be debating whether Europe is headed for a sharp slowdown or even a recession, but Steve Knott, who installs home heating systems in Barrow-in-Furness, a port town in northwest England once known for its iron mills, is convinced he already knows the answer. Mr. Knott, 53, who runs Furness Heating Components, has cut his work force to 18 people from 25 and said business was tougher than he had ever seen it. “There’s a lot of competition, and people are just not building that many houses anymore,” Mr. Knott said. Data released on Friday leaves little doubt that the European economy is losing momentum before most countries have even recovered to the level of output they had in 2008, when the recession hit.

Ferreting out the fakes in the chip supply chain

Source: Bruce Rayner, EETimes, August 15 2011

Catching chip counterfeiters is a high-stakes game requiring sophisticated tools, legislative oversight and heavy-handed diplomacy. How do you tell if a component is authentic? Eyeballing the chip is a start, but it won’t be enough. These days, you’ll need a digital camera, a laboratory-grade high-powered microscope, a binocular stereo-zoom reflected-light microscope and, to be on the safe side, an X-ray inspection system. You’ll also need to be trained in the fine art of decapping semiconductor packages, both mechanically and chemically. As the criminals become more sophisticated, catching bogus parts is becoming increasingly difficult and costly. But catch them you must, especially if your company makes equipment for the auto, aerospace, medical or military markets, where bad parts could mean lost lives. Indeed, if you skimp on due diligence or “knowingly” buy counterfeit parts, you may be held liable.

A bull market in tech patents

Source: Steve Lohr, The New York Times, August 16 2011

Google was willing on Monday to pay $12.5 billion for Motorola Mobility in no small part because of its stockpile of 17,000 patents. The patent portfolio, some analysts estimate, could represent more than half of the value of the deal, or more than $400,000 a patent. If so, it was a relative bargain. In June, Apple and Microsoft teamed up with four other companies to pay $4.5 billion for the 6,000 patents held by the bankrupt Canadian telecommunications maker Nortel Networks. That works out to $750,000 a patent or nearly four times the average price for computer, software and telecommunications patents over the last few years, patent experts say.

Quest for patents brings new focus in tech deals

Source: Evelyn M. Rusli, The New York Times, August 16 2011

Tim Boyle/Bloomberg NewsMotorola Mobility holds a treasure-trove of patents. Wall Street bankers and technology executives have been busy with their calculators in the wake of Google’s $12.5 billion offer for Motorola Mobililty. It isn’t just the rich 63 percent premium for the cellphone company that has them rethinking valuations, but how Google justified its price by pointing to Motorola’s trove of patents. Now other companies with large mobile patent portfolios, like Alcatel-Lucent, Kodak, Research in Motion and Nokia are being scrutinized as possible targets for licensing deals or full-on takeovers.

Solar powered $72 tablet PC from Bharat Electronics Ltd

Source: The Economic Times: August 16 2011

Defence focused electronics company Bharat Electronics Ltd (BEL) is expanding its non-defence or civilian businesses. The PSU major, which is the leading supplier of radar, communication and electronic warfare equipments to the armed forces, is foraying into areas like tablet PCs and solar energy. Over the last four-five months BEL's central research lab designed a basic tablet PC costing $72 that will be used by the rural development ministry to conduct a census study on people below the poverty line. A consortium consisting of BEL, Electronics Corporation of India and Industrial Training Institute will conduct the study.

Automobile production registers 13.01 % Y-o-Y growth in July 2011

Source: Ganesh,, August 17 2011

Automobile production in India has registered a growth of 13.01 percent in July 2011 as compared to July 2010. The cumulative production data for April-July 2011 shows production growth of 16.78 percent over same period last year. The Domestic Sales growth rate recorded for April-July 2011 was 13.55 percent. However, the month of July 2011 registered a lower growth rate of 8.99 percent on month to month basis. The Passenger Vehicles segment grew at 4.03 percent during April-July 2011 over same period last year. Passenger Cars grew by 1.12 percent, Utility Vehicles grew by 7.84 percent and Vans grew by 25.42 percent in this period. In the month of July 2011, sale of Passenger Cars decreased by (-) 15.76 percent, Utility Vehicles and Vans recorded growth of 16.33 percent and 16.12 percent respectively. And growth in overall Passenger Vehicles declined by (-) 8.95 percent in the month of July 2011.

Solar parks to get high priority: Farooq Abdullah

Source: The Economic Times, August 18 2011

The government plans to accord high priority to developing large "solar parks", or clusters of units that can generate a total of up to 5,000 megawatts, to help cut costs, Renewable Energy Minister Farooq Abdullah said on Wednesday. Solar parks would be built in the second phase of the National Solar Mission. The mission aims to generate 20,000 mw of power from sunlight in the next decade. Speaking at The Energy and Resources Institute, Abdullah said that solar parks would comprise 25% of the total target capacity under the second phase of the mission. India plans to add 4,000 mw of gridconnected solar power in the second phase between 2013 and 2017. A 'solar park' is a concentrated zone of solar energy development, targeting 3,000-5,000 mw of generation over time, facilitating reduction in costs of the nascent technology.

Millionaire households in India growing

Source: The Hindu Business Line, August 18 2011

The number of millionaire households in India will grow from 2.86 lakh to 6.94 lakh between 2011 and 2020, a growth rate of 143 per cent, said a study by the Deloitte Center for Financial Services. The growth in millionaire wealth in India is expected to vary across different wealth groups. The $5-30 million group in India is likely to see the biggest growth rate at 161 per cent, followed by the $1-5 million group at 142 per cent and the over $30 million group at 115 per cent. The $1-5 million segment is likely to be largest, with 73 per cent of the millionaire households belonging to this group in 2020.

Compiled by ISA Research

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