IESA WINWire July 20 - July 26  2013
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Government targets Rs 24,000 crore IT revenue in next 7 years
Source: The New Indian Express; July 19, 2013

The State Government is aiming high. It has set its sight on generating revenue of Rs 24,000 crore from information communication technology (ICT) sector in next seven years to jump up the ladder and position itself along with Andhra Pradesh and Karnataka.

The current software exports of the State stands at Rs 1,940 crore which puts it among the top 10 States in the country but the new draft of ICT Policy aims at bigger things. It targets to attract top 10 IT/ITES and top five electronic system design and manufacturing (ESDM) companies to the State by 2020 while raising its total ICT revenue, which includes exports of software, IT services, domestic consumption and training, to Rs 24,000 crore.

All caps off telecom sector, but will the dollars roll in?
Source: Deccan Herald; July 21, 2013

The telecom industry has given thumbs up to the UPA government’s latest decision to increase the foreign direct investment (FDI) cap from 74 per cent to 100 per cent in telecom saying it would reinvigorate a sector which is in severe debt.

According to him, the telecom operators who want to run a company without Indian partners, will have to procure sensitive products used in telephone operations like chips and routers from domestic manufacturers. The government will encourage telecom operators to invest in manufacturing of telecom equipment.

PC chip market improving slowly; Intel and AMD grew revenues in Q2 2013
Source: Electronics Engineering Herald; July 21, 2013

The two major indicators of PC semiconductor chip market, Intel and AMD's revenues are released for 2nd Q 2013. Intel has reported a second-quarter revenue of $12.8 billion, operating income of $2.7 billion, net income of $2.0 billion and EPS of $0.39.

"In the second quarter, we delivered on our quarterly outlook and made several key product announcements," said Intel CEO Brian Krzanich. "In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company."

India Exploring Electronics Manufacturing Opportunities With Taiwan
Source:; July 22, 2013

In a bid to boost the domestic manufacturing, India is eyeing at manufacturers in Taiwan. A joint delegation of industry and government, led by Dr Ajay Kumar, joint secretary, Department of Electronics and IT, participated in Computex 2013. The electronics event was organised by Taiwan Computer Association (TCA) at Taipei, Taiwan in June this year.

The delegation included Dr. Omkar Rai, DG, STPI, D. P. Singh, additional director, DeitY, Pankaj Mohindroo, president, Indian Cellular Association, N.K. Goyal, president, CMAI, Dr. Ramanna Rao, president, LEDMA and MD, MIC Ltd., Anwar Shirpurwala, executive director, MAIT, Sravanan Chandra Mouleeswaran, vice president, SriCity, Daleep Kaul, head, business development, Sify Technologies, Gaurav Mahindroo, executive assistant, MD, RICO Auto Industries, Devesh Tyagi, director, STPI and Bijesh Kumar Roul, deputy director, India Cellular Association.

Ezetap launches 1st 'Made in India' mobile point of sale unit
Source: Business Standard; July 22, 2013

Ezetap today launched the first domestically manufactured and globally certified mobile point of sale device, also known as debit or credit card swipe machine, for less than $50.

"Competing head-to-head against global payments companies using devices manufactured in China in the fast-growing Mobile Point-of-Sale market, the entire Ezetap solution from its card reader to service platform has been 100% designed and developed in India," Co-Founder and CEO of Bangalore-based Ezetap, Abhijit Bose said in statement.

Scientists Create E-skin Bandage That Acts as Health Monitor
Source:; July 22, 2013

An electronic skin is being created by scientists that responds to touch by instantly lighting up. The more intense is the pressure, the brighter is the light emitted.

Ali Javey, UC Berkeley associate professor of electrical engineering and computer sciences, said that with the interactive e-skin, they have showed an elegant system on plastic that can be wrapped around different objects to enable a new form of human-machine interfacing.

This latest e-skin builds on Javey's earlier work using semiconductor nanowire transistors layered on top of thin rubber sheets.

Business groups urge Biden to press India on concerns
Source: Thomson Reuters; July 23, 2013

U.S. business groups on Monday urged Vice President Joe Biden to press India's leaders this week to reverse course on a number of government policies they said unfairly harm U.S. companies that do business in the world's largest democracy.

"Unfortunately, many U.S. companies are facing serious issues doing business in India," the U.S. Chamber of Commerce, the National Association of Manufacturers and some 40 other groups said in a letter to Biden, who will meet with Indian Prime Minister Manmohan Singh in New Delhi on Tuesday.

"In the manufacturing, agriculture, telecommunications, biopharmaceutical, solar energy, entertainment, semiconductor, and other sectors, many companies face measures that are discriminatory, unfair, and/or inconsistent with international norms."

Our vision is to create 1.2 million jobs for Karnataka by 2020: T V Mohandas Pai
Source: Business Standard; July 23, 2013

In a week or so, in a pioneering development, the major arteries of Bangalore's commercial hub - Brigade Road and MG Road - are going to be blanketed with free Wi-fi as a de-facto kick-off to the Karnataka Information and Communication Technology Group (ICT) 'Vision 2020', headed by Manipal Global Education Services Chairman T V Mohandas Pai. He talks to Rajiv Rao about the plan's prospects.

When will free Wi-fi in Bangalore become a reality?
All the equipment has been installed and is being tested. It took more time than we anticipated because of all the power connections, approvals and security clearances that we had to obtain. We should go live in about a week.

OEM chip spending returns to growth in 2013
Source: Cybermedia India Online Limited News; July 23, 2013

After a flat year in 2012, global purchasing of semiconductors by the world's top electronic brands is set to return to growth in 2013, as Apple Inc. and Samsung Electronics contend to claim the title of biggest spender.

The total available market, or TAM, for semiconductor spending by major original equipment manufacturers (OEM) in 2013 will rise to $265.2 billion this year, up 4.2 percent from $254.4 billion in 2012, according to a Semiconductor Spend Analysis Market Tracker Report from information and analytics provider IHS. Spending by year-end will be at its highest level in six years, with expenditures in 2014 forecast to make another modest jump to $279.4 billion.

Import Of Electronics, Mobile Phones To Be Reduced To Support Rupee
Source:; July 23, 2013

To encourage the inflow of foreign institutional investment into the country and form a pro-growth policy, some experts have suggested reducing the import of electronics. The current move by the Reserve Bank of India to raise the rates is having a detrimental effect on the growth while encouraging foreign debt which is considered as hot money.
While the “feel good” factor will now take a long time to come by, cutting back of the rates by RBI will at least do some justice to the situations and the market can “feel better”.

Government turns venture capitalist
Source: Business Line; July 24, 2013

The Government will soon issue guidelines for giving financial support to start-up firms working in the field of electronics.

It will consider providing 15-25 per cent of the total investment for such projects through fund managers, including ICICI Bank, Kotak Mahindra Bank or any big IT company.

“This will be the first time in the country that we will have a system by which the Government can effectively stimulate private sector in research and development because we have one of the lowest intensity of R&D work as part of the GDP (less than 1 per cent) now,” a senior official at Department of Electronics and Information Technology told Business Line. Once the guidelines are prepared, the Government will also fix its return on investments (around five per cent). A high-level committee is working on preparing the guidelines under the chairmanship of R. Chidambaram, Principal Scientific Adviser to Government of India.

Apple iPhone sales record 400% growth in India, Cook acknowledges country's importance
Source: The Economic Times; July 25, 2013

KOLKATA: Apple Inc CEO Tim Cook has taken a U-turn on his stance on India, saying iPhone sales in the country beat all expectations to soar 400% in the April-June quarter just a year after he famously said he loved India but felt business opportunities were much more elsewhere.

In a conference call from the firm's Cupertino headquarters, Cook acknowledged the importance of India, which outpaced Apple's growth in its core markets.

Planning Commission spurns Department of Electronics's Rs 25,000-crore fab manufacturing plan
Source: The Economic Times; July 25, 2013

The Planning Commission has shot down the Department of Electronics and IT's Rs25,000-crore plan to set up dedicated fab manufacturing units in the country, citing possible subsidy outgo to the private sector, dealing a big blow to the industry. "This would amount to giving subsidy to a private company... This is not how the government works," said a Planning Commission official, requesting anonymity.

Mobile growth dip takes shine off Samsung's record profit
Source: Reuters India; July 26, 2013

Samsung Electronics Co Ltd announced a $1 billion increase in investment on Friday, hoping a strong recovery in semiconductors will make up for weakening smartphone growth as it faces mounting pressure to produce eye-catching new gadgets.

The high-end smartphone market, which Samsung dominates along with Apple Inc, is slowing and the South Korean giant is struggling to convince investors it can crack the rapidly growing low-end segment, where its rivals include China's Huawei Technologies Co Ltd and ZTE Corp.

Samsung on Friday reported a 47.5 percent rise in April-June operating profit of a record 9.53 trillion won, in line with its estimate.

Compiled by IESA Research

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