IESA WINWire Sep 21 - Sep 27  2013
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8th Anniversary

IESA Technovation Awards 2013 – Send your Nominations Now
Over the years the Technovation awards have set quality standards for the electronics and semiconductor ecosystem. The Awards will honor India’s best individual contributors and organizations that drive the industry forward; and provide them with a platform to showcase their achievements and product successes. Nominations open till October 15, 2013. Nomination Form available on IESA Technovation Website. Click on the link for details

Chairman's Monthly Message – September 2013

Dear Friends, As I had mentioned when I took over as Chairman, this year is going to be exciting. IESA’s relentless work in the last 3-4 years is beginning to bear fruit.

This month the Govt. of India gave an in-principle approval to the proposal of setting up two chip fabrication units in the country ( ).

This is something we all have waited for a long time. The India Fab will give us the ability to indigenously design and manufacture chips and thus cut down our dependence on imports. The government has already received proposals from two consortiums to set up the India fab: one led by Jaypee Group, and including IBM and Tower Jazz; and the other led by HSMC and including STMicroelectronics and Silterra.

Centre gives Hyderabad IT Rs 2.19 lakh-cr boost
Source: Deccan Chronicle; September 21, 2013

Hyderabad got a major investment boost on Friday with the Cabinet Committee on Economic Affairs (CCEA) approving the state’s proposal for setting up an Information Technology Investment Region (ITIR) in the city.
The ITIR, spread over 50,000 acres, has an investment potential of about Rs 2.19 lakh crore in Information Technology and Electronic Hardware manufacturing over 25 years.

With the approval of the project, the Metro Rail will be extended from Falaknuma till the Shamshabad international airport.

The ITIR will be spread over Gachibowli, Madhapur, Maheshwaram, Mamidipalli, Raviryal and Adibatla in the south and Uppal and Pocharam areas.

India keeps attracting MNC R&D units
Source: The Times of India; September 21, 2013

In a sign that high skilled Indian talent remains much in demand, as many as 25 more global companies have established R&D centres in India since the beginning of 2012. This takes the total number of MNC R&D centres in India to about 1,031. Among those who have entered in the past 18 months are Groupon, Unilever, Expedia, FireEye, Ricoh, Royal DSM, Ruckus Wireless, Abbott, and Sigma-Aldrich, says a just released report by research firm Zinnov.

Shares of Apple, chip suppliers rise as iPhones hit stores
Source: The Economic Times; September 21, 2013

Shares in Apple Inc and key chip suppliers for its new iPhones rose on Friday, as the first day of sales at Apple stores drew long queues and an analyst said the first weekend would likely top the initial sales figures of last year's model.

Hundreds of people queued up at Apple stores in cities including Sydney, Tokyo and New York as Apple launched two iPhone models simultaneously for the first time.

India may soon have its first $1 bn product engineering firm: Zinnov
Source: Smart Investor; September 21, 2013

India may soon have its first $1 billion product engineering services company, proving the country's leadership in the space, management consulting firm Zinnov has said in a latest report.

Even as the report did not share the name of the company which may hit this milestone, it said Wipro, HCL Technologies, Tata Consultancy Services, Tech Mahindra and Infosys are 'significantly large' in this segment. These five companies cover most of the R&D activity outsourced to India, the consulting firm said.

Agilent splitting into two!
Source: EE Times India; September 22, 2013

Agilent Technologies has decided to split itself into two companies. Agilent CEO William Sullivan terms the division as "the biggest and most profound change in our history.""Agilent's history is one of reinvention, starting with our own separation from HP and including four major spinoffs since 2005.

Two India semiconductor fabs approved by Government
Source: Electronics Engineering Herald; September 22, 2013

Setting up of two semiconductor fabrication facilities are approved by government of India. Each one of this facility is proposed by a team of companies.

The one fab which is going to be established near Noida, U.P. is proposed by Jayprakash associates in partnership with IBM and ToweJazz. Technology nodes proposed by this group are 90, 65 and 45 nm nodes in Phase I, 28 nm node in Phase II with the option of establishing a 22 nm node in Phase III.

The other fab that is going to come up near Gandhinagar, Gujarath is proposed by Hindustan Semiconductor Manufacturing Corporation in partnership with ST Microelectronics and Silterra. Technology nodes proposed by this group are 90, 65 and 45 nm nodes in Phase I and 45, 28 and 22 nm nodes in Phase II.

Mr. PVG Menon, President, IESA said “Semi conductor industry is 100% import based and last year alone India consumed semiconductors worth $ 8 billion. Now in order to be self sufficient, FAB will play an essential role towards this as it can give India the technological edge in the global markets.”

38th ELCINA-EFY Awards Announced
Source: Plant Automation Technology; September 23, 2013

Two Special Awards Added to Recognise Contribution and Overall Performance in EMS and Small SME Categories.

The 38th ELCINA-EFY Awards were announced at a ceremony held on September 20, 2013 at India Habitat Centre, New Delhi.

This year the jury for ELCINA-EFY awards has added two special awards to recognise the contribution and overall performance in electronics manufacturing services (EMS) and small and medium enterprises (SME) categories.

The ELCINA-EFY Awards were presented by the chief guest Dr Killi Kriparani, Minister of State for Communications & IT, Government of India. While presenting the awards, the minister emphasised the need for investment in electronics sector in deteriorating economic scenario. Electronics being second largest contributor to imports bill can adversely affect India's growth trajectory.

Fabs in sight at last
Source: Business Standard; September 24, 2013

India's attempt to become a manufacturer of semiconductors (chips that sit at the heart of electronic products) has been full of mishaps, but things seem to be getting off the ground at last. This is after two false starts.

Fabs make heavy demands on the world around them. They are usually subsidised (governments across the world vie with each other with subsidy offers to host them) and require a lot of energy and clean water. India, which was so far lagging behind in offering incentives, has made some progress. After the last Budget, the Indian Electronics and Semiconductor Association noted with appreciation several tax features such as the 15 per cent investment allowance in addition to existing depreciation rules, the hike in import duty on set-top boxes and zero important duty on machinery for fabs.

Bengal pushes for electronics growth
Source: The Telegraph; September 25, 2013

Bengal today sought investments in electronics manufacturing, a sector considered as a thrust area in the state’s new policy on information technology.

Domestic demand for electronic goods in the country is expected to touch $400 billion by 2020 from $75 billion now.

“The top reason to invest in the electronics sector is that it is one of the fastest growing industries in the country that grew from Rs 1.28 lakh crore in 2010-11 to Rs 1.43 lakh crore in 2011-12. In 2012-13, it was valued at Rs 1.77 lakh crore,” Bengal IT secretary Susanta Mazumdar said.

Chip groups Applied Materials and Tokyo Electron to merge
Source: The Shanghai News; September 25, 2013

Applied Materials, Inc, global leader in manufacture of chip making equipment, Tuesday announced a definitive agreement to forge an alliance with rival Tokyo Electron Limited, to create a global innovator in semiconductor and display manufacturing technology via an all-stock combination which values the new combined company at approximately $29 billion (yen2.8 trillion).

Chips are finally up for India
Source:; September 26, 2013

For India, it’s a question of now or never as it renews the dream of becoming a microchip manufacturing hub, decades behind its Asian rivals.
The proposal had been in the works for years until it was stalled by the global credit crisis that followed US investment bank Lehman Brothers Holdings Inc.’s collapse in September 2008.

The industry has long argued that India will need its own fabrication industry to create a full semiconductor ecosystem.
The government’s decision to set up fabs in India will prove to be a “game changer”, according to India Electronics and Semiconductor Association (IESA).

“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 alternative source for procurement,” said P.V.G. Menon, president of IESA.

The move will also help system designers, software developers and chip designers to join hands and develop innovative, indigenous and cutting-edge technology products, said Menon."

STMicroelectronics will build a plant in India microprocessors
Source:; September 26, 2013

The Indian government wants to give the country a clean chip production. Two groups were selected to build two plants, including STMicroelectronics. The company will receive a credit of 10 years and a series of tax incentives.

The government in New Delhi has announced the selection of consortia to build the first two plants microprocessors country. The first, led by Hindustan Semiconductor Manufacturing Corporation (HSMC), includes STMicroelectronics and Malay Silterra. The second, led by Jaiprakash Associates, including IBM and the Israeli Jazz Tower. Each of the two projects provides an investment of approximately € 3 billion.

For example, PVG Menon says, "we have a major problem of lack of resources in education. Develop distance learning through tablets cheap "is one way to address the issue, and have chips domestic low-cost may contribute.

Embedded Systems Solutions Announces Partnership With Coverity
Source: SiliconIndia; September, 2013

Embedded Systems Solutions (ESS), a provider of embedded development tools in India, announces its partnership with Coverity. ESS will be a Coverity channel partner in India focusing on the huge market opportunity in the rapidly growing embedded segment.

Coverity is the leader in development testing, and is the trusted standard for companies that need to protect their brands and bottom lines from software failures.

Compiled by IESA Research

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