IESA WINWire Dec 28 - Jan 3 2014
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Odisha to pitch for inclusion under ESDM training scheme
Source: Business Standard; December 28, 2013

The Odisha government will soon appeal to the Centre to include the state under the newly approved 'Scheme for financial assistance to select six states or Union territories for skill development in Electronics System Design and Manufacturing (ESDM) sector'.

At present, the industry is characterized by high level of import and low domestic content. In Odisha, the IT department has engaged the India Electronics & Semiconductor Association (IESA), the premier trade body representing the ESDM industry, to prepare the draft roadmap for growth of the sector. The new Information and Communication Technology (ICT) policy of the state intends to attract the investors from hardware industry apart from the software industry.

GSA announces chairman of board of directors
Source: CIOL; December 28, 2013

The Global Semiconductor Alliance (GSA), the voice of the global semiconductor industry, announced the appointment of Steve Mollenkopf as the chairman of the GSA Board of Directors for 2014 and 2015.

Mollenkopf serves as CEO elect and president of Qualcomm Inc., leading the company's vision and driving innovation and record growth. He also serves as a member of Qualcomm's Board of Directors.

Simmtronics achieves whopping 10 percent tablet market share in India in Q3
Source: CIOL; December 28, 2013

India's third largest manufacturer Simmtronics Semiconductors has bagged 10 percent market share in the Indian tablet space in the third quarter (July-September) 2013, according to Cyber Media Research India Quarterly Tablet PC Market Review.

Urgent need to boost electronic goods manufacturing: Anand Sharma
Source: NDTV Profit; December 29, 2013

Concerned over increasing imports of electronic goods, Commerce and Industry Minister Anand Sharma has made a case for boosting hardware manufacturing to reduce dependence on imported items.

"IT sector had a skewed growth. In IT enabled services, we are a global leader but we have a huge dependence on imports of electronic goods. That has to be urgently addressed and India has to start making its own chips," Mr Sharma told PTI

LSI India sees growth opportunities in storage, networking
Source: EE Times India; December 29, 2013

"We anticipate that in the next three to four years almost half of all the cell phone calls made in the world will be going through LSI semiconductor. Our vision is that every bit of data shared or stored across the internet and in the cloud touches LSI's silicon," said Raman Santhanakrishnan, managing director, LSI India R&D. .....

iWave Systems; Indian company transiting from services to product space
Source: Electronics Engineering Herald; December 30, 2013

iWave Systems is a Bangalore, India based company, which started in year 1999 as a design services provider. But now if we look at their offerings, iWave has successfully transforming into a product selling company along with maintaining its electronics design services business. Company like iWave Systems sets an example for many Indian companies who are in the electronics design services and interested in entering electronics products business.

Electronics sector ends 2013 on high with Rs 62,000 cr investment proposals
Source:; December 31, 2013

With investment proposals of over Rs 62,000 crore featuring during 2013, the performance of electronic sector overtook that of telecom, once a top notch segment of Indian economy. Though the largest chunk of investment of about Rs 51,550 crore was approved during the year and is yet to close, about 20 entities separately proposed to invest about Rs 12,000 crore in Indian electronics manufacturing sector which is highly dominated by imports.

Compact camera sales fall by 30% in 2013, makers trim production
Source: Economic Times; December 31, 2013

Cheap point-and-shoot cameras may fade out of the market soon. Two top camera makers, Canon and Fujifilm, said they would trim their sub-Rs 10,000 compact camera portfolio in the Indian market with industry sales of such entry-level models having almost halved in 2013, cannibalised by smartphones.

These units, which were until recently heavily advertised and endorsed by celebrities such as Anushka Sharma, Priyanka Chopra and Deepika Padukone, have failed to remain competitive with smartphones, which promise almost equal resolution along with instant sharing capability.

Telecom industry poised for transformation in 2014
Source: Livemint; December 31, 2013

India’s telecom industry is set for a transformation in 2014 that will see it leap from a chronic spectrum crunch to an abundance of the airwaves, offering mobile phone companies opportunities to emulate global business models and offer data services across radio frequency bands.

With mobile penetration in all of urban India well over 100%, the airwaves on offer across all bands can be used solely to drive up data consumption.

10 years of DTH in India: The other electronics revolution
Source: Business Standard; December 31 , 2013

It began on October 2, 2003. And, Dish TV, the first company to launch direct-to-home (DTH) television services, decided to tread slowly. Instead of taking on cable operators head-on in metros and cities, where most subscribers were, the fledgling DTH company decided to focus on rural markets, remote areas and the outskirts of some cities where cable network wasn't available or very poor.

No major takers for govt's fab project, the second time
Source: Business Standard; January 2, 2013

No major technology company has evinced interest in setting up semiconductor chip fabrication (fab) units in India, despite an extended window of opportunity to apply for the government-sponsored project. The Centre plans to subsidise fab units - a complex technology project costing upwards of Rs 25,000 crore - to the extent of 40 per cent and had given an in-principle approval to two consortiums in September 2013. It had also simultaneously opened the floor for others to come forward with their proposals.

Electronic Goods Firms Seek Further Deadline Extension
Source: CXO; January 2, 2013

Importers of electronic products have sought an extension of the January 3 deadline to comply with the Government’s safety certification norms. The deadline has been extended twice earlier - a move that many believe may halt the imports of these products.

The Department of Electronics and Information Technology (DeitY) made it mandatory for all imported electronic goods to comply with Bureau of Indian Standards (BIS) certifications. The decision was taken to regulate the flow of sub-standard electronic products into the country, some of which were also safety hazards. The Government’s regulations are “much similar” to international standards but this is the first time it took a stringent stance, reports the Business Line.

Everything will be imported in India, says MAIT
Source: EE Times India; January 2, 2013

2013 was one of the most exciting years for the Indian electronics industry. Among all major developments, manufacturing remained talk of the town with its share of ups and downs. The year witnessed the landmark approval of setting up of two chip manufacturing facilities in the country, at the same time there were some announcements that shook the industry.

In an unexpected move, India's leading PC manufacturer HCL Infosystems and Wipro announced their plans to quit PC manufacturing business

Sanjeev Keskar, chairman, India Electronics and Semiconductor Association (IESA), termed the move as "unfortunate." He said, "Due to lack of component eco-system computer/laptop/server assembly became a low value add manufacturing and there is no strong differentiator or value proposition vs. the global companies who are aggressive in India market. Eventually lack of local component eco-system affects margins in this business."

On the other hand, IESA President PVG Menon believes that both the inverted duty structure as well as the plethora of local taxes and levies complicates matters for Indian manufacturers. "India signed the ITA-1 part of the WTO Accord in 1997. By 2000, the import duty on all IT products had reduced to zero. This makes it very difficult for Indian manufacturers to compete against multinational companies with global supply chains and economies of scale." He said the industry body has long been asking the government to give deemed-export status to Indian manufacturers of ITA-1 classified products, "so that they have a level-playing field to compete against cheap foreign imports."

IBM, ST Microelectronics only players keen on wafer fabrication unit; government to share 40% of total cost
Source: The Times of India; January 3, 2013

After failing to attract global chipmakers such as Intel and Samsung for setting up a semiconductor wafer fabrication unit, India is going ahead with the two consortia it approved in-principle — IBM and ST Microelectronics.

"The (two) consortia are very bullish," a senior industry executive said. They have accepted the terms of support outlined by the government of India, and they will now work on detailed project reports, which could take as much as six months to be ready for submission.

Special Authority for ITIR to be set up soon
Source: The Times Of India; January 3, 2013

To make Information Technology Investment Region (ITIR) a reality, a special authority, 'Hyderabad ITIR Development Authority', will be set up soon. The authority is likely to be under the AP Industrial Infrastructure Corporation (APIIC) as the latter would act as nodal agency for the ITIR.

Compiled by IESA Research

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