IESA WINWire - Feb15 - Feb 21, 2014
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'LG, Samsung mull setting up semiconductor units in India'
Source: Business Standard; February 16, 2014

South Korean multinational conglomerates Samsung and LG are considering setting up units to manufacture electronic chips in India, following the government's clearance to build two such semiconductor units.
Republic of Korea's Ambassador to India Joon-gyu Lee at a recent event said the Indian government wants to get companies like Samsung and LG, which manufacture semiconductors, to start this operation here as well.
"The companies (LG and Samsung) are considering the Indian request. The problem is Indian style of slow processes," Lee said.

India approves 2 semiconductor units worth Rs 63,410 crore
Source:; February 16, 2014

The Cabinet has approved two electronic chip manufacturing plants in the country to be set up by two groups, with players such as STMicroelectronics and IBM, for a total of Rs 63,410 crore.
One of the semiconductor wafer fabrication manufacturing plants will be set up by Jaiprakash Associates Ltd, with IBM and Tower Semiconductor of Israel as partners, an official statement said today.

Electronics industry demands for GST from next fiscal
Source: The Economic Times; February 16, 2014

Stating that present tax system is hindering its progress, the electronics manufacturing industry has demanded implementation of GST in the next financial year.
"While government is making all efforts to promote the electronics manufacturing, the anomalies in tax system are resulting in slowing down our progress and having a regressive impact on the industry," industry body ELCINA's Secretary General Rajoo Goel told PTI.

PVG Menon steps down as President of IESA
Source: Data Quest; February 17, 2014

The India Electronics & Semiconductor Association (IESA), a trade body, representing the Indian Electronic Systems Design and Manufacturing (ESDM) and Semiconductor industry today announced that Mr. PVG Menon, President since mid-2011 would be stepping down from his position w.e.f. from March 31st 2014.
The IESA also announced formation of a Search Committee to look for a new President. Mr. Sanjeev Keskar, Chairman, Indian Electronics & Semiconductor Association (IESA) said, "Mr. PVG Menon has contributed immensely to the further advancement of IESA's goals and mission during his brief and impactful tenure as President. We shall miss his dynamic leadership, and wish him all the very best for his future endeavours."

Interim budget: Excise duty rejig on mobiles may not boost local manufacture
Source:; February 18, 2014

The government’s interim budget proposal to restructure excise duty in a bid “to encourage domestic production of mobile handsets...and reduce the dependence on imports” may appear to be a step in the right direction but it is unlikely to have the desired impact, industry experts and analysts said.
Not only does the existing customs duty on imported handsets make domestic manufacturing unattractive, but also the proposal itself is short-term in nature, they said.
On Monday, the government proposed to impose an excise duty of 6% with centrally-added value tax (Cenvat) credit (for importers of handset), or 1% without Cenvat credit (for those who assemble or manufacture handsets in India), on all categories of mobile handsets.

Union Budget 2014: How it will impact IT/ ESDM industry
Source: CIOL; February 18, 2014

Budget 2014 was an interim budget and hence no significant policy announcements were expected. From the perspective of the IT-BPM sector in India, it helped to communicate the key messages of fiscal consolidation, focus on tax reforms, inclusive growth and thrust of skill development.
Key announcements which will have a positive impact include - continued support to NSDC and other skill building initiatives and steps to ensure MSME's participation in public procurement.

47 Taiwanese electronics firms to set up shop cluster in Bangalore
Source: The Economic Times; February 19, 2014

Taking Karnataka's hardware story to the next level, 47 Taiwanese companies are coming to Bangalore to set up a cluster on 300 acres near the Bangalore International Airport. Work is expected to start within the next few months. The 300 acres will be developed by Taiwanese realty company Century Developers. A convention centre is also due to come up on 36 acres, the civil construction of which is beginning soon.

IT companies flock to Punjab, invest Rs.1000 crore
Source: EE Times India; February 19, 2014


The Punjab government distributed letters of land allotment to 27 IT companies including the software-giant Infosys on Monday to facilitate the construction of their bases in Mohali, a move that aims to make the state an IT hub.
According to IANS, Deputy Chief Minister Sukhbir Singh Badal said that the companies will rake in an investment worth Rs1,000 crore and introduce employment to some 30,000 youth in Punjab in the next three years, adding that 15 companies out of the 27 are of international repute.

Analyst: Chip sales to break 1 trillion mark in 2016
Source: EE Times India; February 19, 2014

According to the latest report from IC Insights, worldwide semiconductor unit shipments, including ICs and optical, sensor and discrete (OSD) devices are forecast to break the one trillion mark in 2016. Semiconductor unit growth is predicted to increase to roughly eight percent this year, added the market research firm.

Gujarat may find it difficult to allot land for Rs 29,000-cr chip plant
Source: The Hindu Business Line; February 19, 2014

Although the Union Cabinet on February 14 approved the setting up of one of India’s two electronic chip-manufacturing plants at Prantij in Himmatnagar district, North Gujarat, the State Government may find it “difficult” to allot land for a project to be set up with a big-ticket investment of over Rs. 29,000 crore.
When contacted, a senior revenue official told Business Line there is simply no land available for the semiconductor project at Prantij. “Some 500 acres of land is available at Vaghpur, but it is meant for a proposed Central University. We have no application from any industry to be set up at Prantij, either.

Taking Karnataka's IT Hardware Growth To Next Level
Source: CXO; February 19, 2014

Taking Karnataka’s IT hardware growth story to the next level, the Karnataka government joined hands with MAIT, the apex body actively representing IT Hardware sector, to organize a Workshop on “India Market Place: IT the unrealized potential”. With Karnataka being touted as the ‘hardware hub of the country’, State IT minister, S R Patil urged for a shift in policy, tax restructuring, better functioning with the union government. In this regard the Minister also stressed the need for MAIT to take an active role on government policy making.

Odisha Invites ESDM Companies To Invest In The State
Source:; February 19, 2014

The Odisha Investment & Export Promotion Office (OIEPO) organised an Interactive Meet with many IT/ITES/ESDM companies and industry organisations in New Delhi. The interactive session aimed toto encourage investments in the financially poor state.
The OIEPO houses in the office of the Principal Resident Commissioner of the state. Dr. Sunil Kumar Bhargava, principal resident commissioner, aimed at highlighting the significant achievements of the state during last 10 to 12 years during the meet. He stated that Odisha has carved out a clear road map for IT/ ITES sector with the adoption of new ICT Policy (2014), which gives much incentives to entrepreneurs to invest and grow in IT/ITES sector, as per a report in Orissa Diary.

Job cuts in IBM India hit the nation hard
Source: EE Times India; February 19, 2014

IBM has begun cutting jobs in India, described as one of the most massive lay-off drive by a technology firm. Poor Q4 results reported last month, marked by a 26 percent drop in hardware revenue, is suspected to be the main cause of layoffs.
Worldwide, IBM employs 430,000 people and reports said some 13,000 jobs are likely to be cut as the tech major performs a "global rebalancing" act, termed "resource action" or RA, that could save about $1 billion in costs.

BEL To Add Rs.620 Crore For Electronic Warfare Products Dev't
Source: EE Times India; February 19, 2014
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Bharat Electronics Ltd (BEL) announced yesterday that it will team up with the Defence Research and Development Organisation (DRDO) to develop electronic warfare products. State-run BEL is expected to invest Rs.620 crore in the next five years for the project, the Indo Asian News Service reported. BEL Chairman and Managing Director S. K. Sharma said at a conference in Bangalore that the products that will be developed under this collaboration with the DRDO will be in further support of India's armed forces. BEL already supplies radars, missiles and sonars to the Indian army, navy and air force. It also previously worked with the DRDO and the Electronics Corporation of India for a mobile integrated electronic warfare system dubbed 'Samyukta,' according to the IANS. Sharma believes that the market potential for electronic warfare systems is roughly Rs.10,000 crore as the need for such advanced equipment wil grow significantly in the coming years. BEL has sold such products valued at Rs.2,000 crore to India's armed forces over the years, said Sharma. He added that it is necessary for engineers to get advanced training in operating electronic warfare systems.

Global Spending on Electronic Warfare to grow to over $9.3 billion, says Strategy Analytics
Source: IT News Online; February 21, 2014

Global spending on RF-based Electronic Warfare (EW) systems is forecast to grow to over $9.3 billion through 2022. While troop withdrawals from theatres such as Iraq and Afghanistan are causing a short-term decline in the number of land-based Electronic Warfare equipment for Electronic Attack (EA) capabilities such as jammers, the general trends towards asymmetric warfare and the use of IEDs will continue to proliferate, leading to continued demand for land-based EW systems: The Strategy Analytics Advanced Defense Systems (ADS) service forecast model, "Land-based EW (EA) and Components Forecast 2012-2022," details global expenditure for EW equipment with future demand segmented in terms of form factors, power outputs and frequency trends.

Compiled by IESA Research

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