IESA WINWire Jan 18 - Jan 24 2014
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IBM to expand cloud computing services to India
Source: Business Standard; January 18, 2014

"IBM is continuing to invest in high growth areas," said Erich Clementi, senior vice president of IBM Global Technology Services.

Cloud computing is a term used to describe a variety of computing concepts that involve a large number of computers connected through a real-time communication network like the Internet.

"Today's announcement is another major step in driving a global expansion of IBM's cloud footprint and helping clients drive transformation," said Clementi.

The investment includes a network of cloud centres designed to bring clients greater flexibility, transparency and control over how they manage their data, run their business and deploy their IT operations locally in the cloud.

Posco project will inspire Koreans to invest in India: Park
Source: Oneindia; January 18, 2014

The success of Posco's $12 billion steel project in Odisha will inspire and determine investments by other major Korean firms in India, South Korean President Park Geun-hye said Friday. Addressing a business meeting here, Park, who is on a four-day state visit here, hoped that the Posco plant would start production soon.

The minister said Korean technology and resources were also welcome in IT, electronics, particularly semiconductors and chip-making.

Fresh attempt to boost domestic manufacturing of electronics may not attract hi-tech factories
Source: The Economic Times; January 19, 2014

A TV set top box (STB) made in India is dearer by about the cost of a small Domino's margherita pizza compared to an imported box from China. In a market that is fast shifting from cable TV to direct-tohome satellite TV, the number of STBs needed is huge - about 75 million of the boxes that help decode satellite signals and display content on TV screens would be needed over the next few years.

"A focus on these 25 will help create the ecosystem and scale up manufacturing in the country," says PVG Menon, president, India Electronics and Semiconductor Association (IESA).

So for instance, whilst an STB is made by a few local vendors including Videocon and MyBox Technologies, the manufacturers rely on imports for components that go into the box, like integrated circuits. Says Amit Kharbanda, CEO, MyBox Technologies: "We have localized 35% of the STB, while rest of the components are imported and assembled here." Similarly, for flat TVs, the local value-add (or components sourced locally) is 25% while the rest of the components are imported.

TSMC says demand for mobile devices boosted its Q4 revenue
Source: EDN Asia; January 20, 2014

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 10.9 per cent growth in revenue in the fourth quarter, which ended December 2013, compared to the same quarter a year ago. The company's Q4 net income and diluted earnings per share both increased by 7.7 per cent. The company says the growth can be attributed to the increase in demand for mobile devices late in the year and its improved margins. TSMC said the gross margin for the quarter was 44.5 per cent, operating margin was 32.8 per cent, and net profit margin was 30.7 per cent.

TSMC, however, isn't optimistic about the coming quarter.

Lora Ho, senior vice president and chief financial officer of TSMC, noted in a statement that the company expects its first quarter revenue to decline sequentially by about 6 per cent. It's due to "IC companies' weak seasonal demand and the continuing inventory reductions by the fabless companies," she added.

Korea's World Chip Market Share Rises to 15.8% Overtaking Japan's 13.9%
Source: Korea IT Times; January 21, 2014

Korean semiconductor chip suppliers' share in the world market last year has overtaken that of Japanese makers for the first time in history.

This is a great accomplishment after three decades since Korean chip makers entered the market in earnest. The Ministry of Trade, Industry, and Energy said this on January 20 citing data from the Korea Semiconductor Industry Association and market research firm iSuppli.

Of the US$317.9-billion global sales revenue last year, Korean companies sold $50.1 billion, accounting for a 15.8-percent share. As for the Japanese counterparts, the market share was 13.9 percent, ranking No. 3 in the world. The share of U.S. suppliers such as Intel, Qualcomm, and Micron was 52.4 percent.

Samsung India Wins the Prestigious Golden Peacock Award for its ‘Samsung Smart School’ CSR initiative
Source:; January 21, 2014

Samsung Electronics Co. Ltd, a global leader in technology has been awarded the prestigious ‘Golden Peacock Award for Corporate Social Responsibility 2013’ for its Samsung Smart School initiative. The Award recognises Samsung’s work to improve the quality of education provided to underprivileged children in the country through its CSR initiatives.

Commenting on the award, Mr. Ravinder Zutshi, Deputy Managing Director, Samsung India said, “We are delighted to receive the prestigious Golden Peacock Award for CSR for the third time. For Samsung, Corporate Social Responsibility involves extending our legacy of innovation to create value for society by addressing societal needs and challenges. Through our initiatives to improve the quality of education, such as the Samsung Smart School project, we hope to open newer possibilities that positively transform people’s lives.”

Green light for Industrial Township in Gr Noida
Source: Times of India; January 21, 2014

The government on Monday approved an investment of over Rs 1,700 crore in creating trunk infrastructure such as roads, bus rapid transit system and telecom and IT infrastructure for an industrial township, in an attempt to leverage it to attract private investment of over Rs 33,000 crore near the town in Uttar Pradesh where development has slowed down with attention diverted to the Yamuna Expressway.

Prantij to house new semiconductor unit
Source: The Times of India; January 22, 2014

Prantij in Sabarkantha district has been picked as the location for setting up of a new semiconductor wafer fabrication (FAB) manufacturing facility in the state. Additional chief secretary of the state's industry department said on Tuesday that the facility is expected to attract more than Rs 22,000 crore investments in the region. Of this, Rs 6,000 crore will be invested by the central government.

"The Union government has selected 1,000 acre of land for setting up the manufacturing facility in Prantij, 15 km from Ahmedabad and project will begin soon," Sahu said, speaking on the sidelines of the launch of Gujarat Knowledge Application And Facilitation Centre by Confederation Of Indian Industries (CII) in partnership with the Gujarat government and Gujarat NRE Coke at CII building.

Lenovo in talks again to buy IBM’s server business
Source: economic Times; January 22, 2014

Lenovo Group is in discussions to acquire IBM's low-end server business, and a deal may be signed within weeks, according to a person with direct knowledge of the matter.

Lenovo has completed due diligence, according to the person, who asked not to be identified because the talks are private. The companies failed to agree last year on a price for the assets, estimated to be worth $2.5 billion to $4.5 billion. Lenovo said it's in preliminary talks on a possible acquisition without identifying the target or seller.

Intel invests USD 120mn in Bangalore on infrastructure
Source: Voice & data Online; January 22, 2014

Semiconductor giant, Intel invests USD 120 million on its infrastructure in the India's Silicon Valley, Bangalore. The company will set up a third building (SRR3) on an area spread over 18 acres at Sarjapur Ring Road which is expected to be completed by mid 2015. Currently, it has two buildings - SRR1 and SRR2 in the same campus. While this investment hardly brings cheer to fresh employees in India. Kumud Srinivasan, president of Intel India stated that they have no plans to enhance their workforce currently. Commenting on a recent news report on layoffs at Intel, Kumud said that layoffs aimed at staying in tune with the market's progress. And she added, "The idea is to shift headcount from low priority areas to high priority areas."

Texas Instruments to cut 1,100 jobs, India operations to be affected
Source: The Times Of India; January 22, 2014

Texas Instruments Inc plans to cut 1,100 jobs in the United States, Japan and India, or about 3 percent of its global workforce, in a corporate restructuring to save $130 million by the end of 2014.

The US chipmaker, which in 2012 announced it would lay off 1,700 people as it wound down its mobile processor business, has said it wanted to reduce expenses in its embedded-processing division and in Japan.

New products offer a lot of potential, says Cadence India MD
Source: The Hindu Business Line; January 22, 2014

Ever wonder how the tiny chips that power our gadgets are designed and checked before they are manufactured? Electronic design automation (EDA) is the software that electronic designers use to handle the complexity of modelling and verifying advanced semiconductor chip and system.

Cadence India, a subsidiary of US-based Cadence Design Systems, is a leading provider of EDA solutions globally.

Jaswinder Ahuja, Corporate Vice-President and Managing Director of Cadence India, talks about the growth of the India design centre and the exciting opportunities for innovation

India-born Standford don wins Marconi Prize
Source: Manorama Online English; January 23, 2014

Arogyaswami Joseph Paulraj, a 69-year-old India-born professor at Stanford University, has won the prestigious Marconi Prize 2014 for his pioneering work on developing wireless technology to transmit and receive data at high speeds.

"Paulraj's contributions to wireless technology and the resulting benefit to humankind are indisputable. Every WiFi (wireless fidelity) router and 4G phone uses Multiple Input Multiple Output (MIMO) technology pioneered by him," Marconi Society chairman David Payne said in a statement from California Wednesday.

Samsung and Apple accounted for 17% of total semiconductor demand in 2013: Gartner
Source: The Economic Times; January 23, 2014

Samsung Electronics and Apple remained the top semiconductor buyers in 2013, increasing their combined semiconductor demand by 17 per cent, according to Gartner, Inc. Samsung Electronics and Apple together consumed $53.7 billion of semiconductors in 2013, an increase of $7.7 billion from 2012.

"Samsung Electronics and Apple have topped the semiconductor consumption table for three years running, with their share of the design total available market (TAM) rising from 12 per cent in 20 ..

ZTE plans to manufacture its smartphones at the company’s Manesar plant
Source: The Economic Times; January 23, 2014

ZTE Corp plans to manufacture full range of smartphones at its Manesar plant once its handset business assumes a certain scale in India, a senior company executive said, giving a shot in the arm to the country's plans of toning up its fledgling telecom manufacturing act.

The comments come at a time when the world's fifth-largest telecom gear maker is looking to develop 4G equipment, mobile devices and chipsets in the world's second largest mobile phone market after China.

Compiled by IESA Research

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