IESA WINWire Sep 14 - Sep 20  2013
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8th Anniversary

First ‘Made-in-India’ chip in 2-3 years, says Sibal
Source: The Hindu Business Line; September 13, 2013

The Government on Friday said the first ‘Made-in-India’ chip would be rolled out in the next two-three years.

This follows Cabinet’s decision to approve two fabrication units for which the Government will give tax breaks and subsidies.

The Government will invite other global companies to avail themselves of the incentives.

Setting up semiconductor fab to cut import bill
Source: Deccan Herald; September 13, 2013

The government’s decision of setting up Rs 51,550-crore semiconductor fabrication plants will help India cut its ever-ballooning import bill from $491.48 billion in 2012-13 and pave the way for domestic manufacturing of electronic products.

Tower Semiconductor has partnered with International Business Machines and Jaypee Associates, STM has partnership with Hindustan Semiconductor Manufacturing for the fab.

“It was expected that some day it would be cleared and was part of the recommendations of the committee that I had chaired,” HCL Founder Ajai Chowdhry told Deccan Herald.

The India Electronics & Semiconductor Association (IESA) lauded the announcement and said that some of the world’s leading economies including the USA, France, Germany, Ireland, Japan, Singapore, Taiwan and China besides a number of developing economies like Malaysia and Israel have their own fabs.

Despite Cabinet nod, cloud hangs over fate of chip fab units
Source: Business Standard; September 14, 2013

Despite the go-ahead from the Cabinet on Thursday for incentivising two semi-conductor chip fabrication units, a cloud hangs over their fate as the door has been left open for more players to come in.

While giving 'in-principle approval' to subsidise the two proposed fab consortiums - one led by Jaypee Associates and the other by Hindustan Semiconductor Manufactu-ring Company (HSMC), the cabinet has also asked the department of electronics and IT to actively seek for more proposals in the next four weeks.

According to Sibal, the government got 33 proposals initially, but most of them fell by the way side. Only two reached the evaluation stage and their proposals were later placed before the Cabinet.

India lures chipmakers, says IBM, STMicroelectronics interested
Source: NDTV Profit; September 14, 2013

Two consortia, including IBM and STMicroelectronics, have proposed building semiconductor wafer plants in India costing a total of $8 billion, a minister said after the government approved concessions to lure chipmakers.

India, which wants local production of chips to cut long-term import bills, has renewed a drive to attract investments after a previous attempt failed.

'Consumerism of medical devices offers huge opportunity': ADI
Source: EE Times India; September 16, 2013

While 80% of the medical devices are imported for India's consumption, we are seeing increasing number of designs being done by Indian arms of MNCs and Indian design houses. "Higher performance, more integration, compact size, ultra-low power and in general the consumerism in general the consumerism of medical devices brings about opportunities for semiconductor makers like Analog Devices.

UK keen on collaboration in ESDM and ICT sectors
Source: Cybermedia India Online Limited News; September 16, 2013

Francis Maude, UK minister for the cabinet office and Paymaster General, on his one-day visit to Bangalore today to interacted with Bangalore's stakeholders about open governance issues, the current level of IT implementation and utilisation and more importantly the impact it has on the quality of life.

Maude was here as part of the GREAT Roadshow, a series of niche events aimed at fostering exchange between the UK and India to facilitate trade and investment.

The UK is a model country for delivery of services to citizens and hence is keen to share its experience and expertise in this field with India. E-governance measures such as Sakala and e-Sugum are examples of Karnataka's leadership role in open governance.

'PMA Policy To Aid Indian Chipmakers'
Source:; September 16, 2013

Hindustan Semiconductor Manufacturing Corp., the firm which has received an in-principle nod for establishing an electronic chip making unit hailed present policies of the government, especially the policy that provides preference to domestic manufacturer. It stated that this will be of help to chipmakers.

This firm, which is founded by a group of Non Resident Indians (NRIs) of Silicon Valley, along with France-based ST Microelectronics and Silterra (Malaysia) is one of consortia that has received a green signal for building the proposed Rs 252.5 billion (Rs 25,250 crore) fab unit.

With respect to government procurement, notification has already been issued by the government but the one related to private sector procurement is presently under inter-ministerial consultations. On completion, it will be presented before the government for its approval.

Government plans to fund electronics startups to encourage local manufacturing
Source: The Economic Times; September 17, 2013

The government is finalising plans to fund and incubate technology startups that specialise in electronics as it seeks to encourage local manufacturing and limit import of electronic merchandise, country's second-biggest foreign exchange-drainer after oil. Select educational institutions such as Bangalore-based International Institute of Information Technology and Delhi University are being roped in for housing such incubators, a senior government official told ET.

"Promoting startup incubators is an important part of the policy," said Ajay Kumar, joint secretary, Department of Electronics and Information Technology.

The idea, said PVG Menon, president, Indian Electronics and Semiconductor Association, is to give the entrepreneur a short runway to success and is in line with industry's vision to grow 200 successful product companies and 50 semiconductor companies in India over the next decade.

Industry rejoices as govt approves two Semiconductor fabs
Source: CXO; September 17, 2013

The India government’s recent approval of the setting up of two semiconductor fabrication plants in the country have brought relief to Indian IT, as many in the industry believe they now have a reason to rejoice. In a statement released today, the IT apex body, MAIT welcomed government’s decision to recently approve setting up of two semiconductor manufacturing facilities in India.

Not only MAIT, others in IT/semiconductor believe the long-awaited decision has finally seen the light of the day, as India Electronics and Semiconductor Association (IESA) called it “a highly strategic game changer for India”.

IBM Technology helps Leading Universities in India Prepare Students for the Future
Source: India Education Review; September 18, 2013

IBM today announced that leading universities across India are using IBM's technologies to improve the quality of the education process, introduce new curricula and prepare their students for jobs in the future. IBM has played a pivotal role in providing innovative technology solutions to the Indian education sector.

Zinnov, a leading advisory firm, recently recognized IBM India as the leader amongst MNC (multinational) Technology Centers that have contributed significantly to the development of the University Ecosystem in India, for the third consecutive year.

China to slap anti-subsidy duties on U.S. solar material
Source:; September 18, 2013

China said on Monday that it would impose preliminary anti-subsidy duties on some imports of U.S. solar-grade polysilicon, a move that could intensify trade tensions between the world's two largest economies.

China's Commerce Ministry said it would hit U.S. imports of the material used to make solar panels with relatively low duties of up to 6.5 percent, amid trade frictions in the struggling global solar industry.

That follows the ministry’s much heftier anti-dumping duties – used for goods sold below market value of 53.3 to 57 percent on U.S. polysilicon in July, a move which many saw as a bid to protect China's struggling domestic industry. Washington called those duties disappointing.

HSMC ties up with L&T, IL&FS to set up semiconductor plant
Source:; September18, 2013

The government’s approval last week for plans to set up two semiconductor-manufacturing facilities in India has turned the focus on Hindustan Semiconductor Manufacturing Corp. (HSMC) which, in anticipation of imminent approval, had already signed agreements with infrastructure companies Larsen and Toubro Ltd (L&T) and Infrastructure Leasing and Financial Services Ltd (IL&FS).

“We will be helping HSMC (Hindustan Semiconductor) to design and plan the infrastructure to set up a fab. We will be helping the company to structure the project in the country as we have the expertise to do so,” he added, without disclosing details. A fab also requires around 10 million gallons of water a day and gases such as nitrogen, for which Hindustan Semiconductor will take advantage of the existing partnerships it has with US Filters, a former Siemens affiliate, for water and waste management and France’s Air Liquide for gases.

“With the location of a fab in India, the country could achieve a degree of self-sufficiency in electronics, and partially reduce the very high supply chain risks that India is exposed to, without an alternate source for procurement,” said PVG Menon, president of IESA.

Worldwide semiconductor manufacturing spending to fall 8.5% in 2013: Gartner
Source: My Iris; September 19, 2013

Worldwide semiconductor manufacturing equipment spending is projected to total USD 34.6 billion in 2013, an 8.5% decline from 2012 spending of USD 37.8 billion, according to Gartner, Inc. Gartner said that capital spending will decrease 6.8% in 2013, due to diminishing 28-nanometer (nm) investment from a softening in the mobile phone market.

"Weak semiconductor market conditions that continued into the first quarter of 2013 generated downward pressure on new equipment purchases," said Dean Freeman, research vice president at Gartner. "However, semiconductor equipment quarterly revenue is beginning to improve, and positive movement in the book-to-bill ratio indicated that spending for equipment will pick up in the remainder of 2013. Looking beyond 2013, we expect that the current economic malaise will have worked its way through the industry, and spending will follow a generally increasing pattern in all sectors throughout the rest of the forecast period."

Indian SPs move ahead in R&D Service provider ratings
Source: Cybermedia India Online Limited News; September 19, 2013

Zinnov Management Consulting, a leading Globalization and Market Expansion Advisory firm, today launched its much awaited Rating of Global R&D Service Providers' across geographies. The study titled "Global R&D Service Providers (GSPR) Rating 2013", is an annual study to assist business leaders spearheading global engineering initiatives make right decisions in partner selection across geographies.

According to the Study, the Indian service providers have clearly emerged as the leaders and soon India will have a USD 1 billion Product Engineering Services player in the market. The service providers can be broadly classified into three groups. First group is Wipro, HCL, TCS, Tech Mahindra and Infosys, which has a significantly large product engineering practice and amongst them they cover most of the outsourced R&D activity.

Certificate course in electronics test engg
Source: The Hindu; September 20, 2013

The Centre for Electronics Test Engineering, a government of India training institute, will conduct a month-long skill development and job-oriented programme for engineering graduates belonging to the minority community from September 30. The certificate course will be offered at a nominal fee. Further details can be had on 27181180 and 27181170.

Compiled by IESA Research

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