IESA WINWire Aug 08 - Aug 14, 2015
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High-Speed SerDes: The Heart of IoT Products – Techovation Award Winner 2013
Source: EFY; August 8, 2015

This transceiver from Terminus Circuits is first of its kind, designed and implemented in India. It provides the high-performance data processing required for many of the Internet of Things applications.

It took almost three years to claim the finished SerDes IP design. Currently, there are only a handful of companies across the globe that provide such high-speed SerDes IPs. The product is first of its kind developed completely in India and meets the requirements prescribed by the standards bodies like IEEE, and PCI-SIG. The complexity of the design being very high, its development required manpower that had years of experience in designing SerDes IPs and their sub-blocks. Scarcity of highly knowledgeable, skilled and experienced workforce in this field was a challenge.

The product has received the ‘Most Innovative Product of the Year 2013’ award from India Electronic and Semiconductor Association (IESA) in recognition of innovative ideas that were implemented in the design of SerDes, which helped the customers to mitigate their SoC and package complexities.

Imports to be last resort, new defence policy to push Make in India
Source: Business Standard; August 9, 2015

According to sources, the modified Defence Procurement Procedure is expected to be finalised by the end of this month.

With Make in India the new mantra for defence manufacturing, the government has decided against importing equipment unless it is impossible to make it at home and this thrust on indigenisation will reflect in the new Defence Procurement Procedure (DPP), sources said. According to the highly placed sources, the modified DPP, a draft of which is ready and under discussion in the defence ministry, is expected to be finalised by the end of this month. The document, along with provisions for encouraging domestic industry, will have its spirit summed up in a preamble that will stress on Make in India. "The DPP will have a preamble, which will clearly state that every product should be designed, developed and made in India," a highly placed source told IANS, not wishing to be identified by name. "Imports will be allowed only in case we cannot make it in India and as a last resort," the source said, quoting from the preamble. The defence ministry has recently cleared several big ticket proposals under the Make in India initiative and the new procedure will push it further. Among other provisions, the DPP is likely to initiate the process for a Technology Development Fund (TDF), with initial capital of Rs 100 crore, a defence ministry official said.

Foxconn To Invest $5 Billion In Maharashtra For New Electronics Factory
Source: Huffington post; August 9, 2015

Taiwan's Foxconn, the world's largest contract electronics manufacturer and a key supplier to Apple Inc., on Saturday signed a pact with Maharashtra to invest $5 billion over five years on a new electronics manufacturing facility. The announcement was made by Foxconn founder Terry Gou and Maharashtra Chief Minister Devendra Fadnavis in the state capital Mumbai. The Foxconn announcement will bolster Indian Prime Minister Narendra Modi's "Make in India" campaign, which aims to turn Asia's third-largest economy into a manufacturing powerhouse. Gou said Foxconn, the trade name for Hon Hai Precision Industry Co Ltd. which also counts Blackberry, Xiaomi and Amazon as clients, was looking for local partners for the facility in the western Indian state. He declined to say if the Taiwan-based company would make mobile phones at the facility. India could help Foxconn mitigate accelerating wage inflation in China, where it makes the majority of iPhones, and base production sites closer to markets where its key clients want to grow. On Tuesday, Gou said in New Delhi that he was looking at setting up manufacturing.

‘We aim to attract investments that can create lots of jobs’
Source: The Hindu; August 10, 2015

At a time industrial units in Tamil Nadu and Andhra Pradesh are scouting for a place free of controversies to set up their factories, Sri City, a private multi-product operational SEZ (special economic zone) located 60 km from north of Chennai, has emerged as an attractive destination with its world-class infrastructure and industry-friendly ambience. Since its launch in August 2008, the SEZ has attracted manufacturing investments from a range of industries. It is now focused on creating world class social infrastructure in the SEZ. Ravindra Sannareddy, Co-founder and Managing Director of Sri City, spoke to The Hindu about this mega industrial park and its future.

Where does Sri City stand now in terms of attracting industrial investments?
The SEZ is home for about 106 companies from about 26 different countries with proposed investments of about Rs.20,000 crore. Once the ongoing projects such as Isuzu and Cadbury get completed, the total jobs will be about 18,500. Presently, there are about 8,000 direct factory workers and about 2,000 indirect workers such as house-keeping and other support staff. Besides, there are 5,000-6,000 construction workers.

Manufacturing entrepreneurship crucial for 'Make in India': Experts
Source: ET; August 8, 2015

Start-ups in the core manufacturing sectors are poised to play a crucial role in the success of 'Make in India' ambitions, said experts at a panel discussion at the 11th India Innovation Summit 2015 on Friday. "Start-ups in the fields of telecom, defence manufacturing, automobile, Internet of Things, financial technology modules and mobile internet have immense potential to succeed in the scheme of 'Make in India'," said Siddhartha Das, general partner, VentureEast addressing aspiring entrepreneurs at the discussion on "Entrepreneurship - Role of Startups towards Make in India". Ganesh Surayanarayanan, GM, IoT, Cloud and Analytics Solutions, Tata Sons, said that entrepreneurship and startups have become synonymous with e-commerce in the present times and highlighted that encouraging core manufacturing sector entrepreneurship is equally important. Kajal Shah, co-founder of automotive startup Adarin ET revealed that her startup procured venture capital funding after a great difficulty.

CII demands sops to boost manufacturing in medical devices sector
Source: The Economic Times; August 10, 2015

Industry body CII has submitted a set of recommendations to the Department of Pharmaceuticals (DoP), demanding promotion of the components and ancillary industry in the Preferential Market Access (PMA) policy to give boost to the medical devices sector. Besides, it has also demanded incentives for exports and manufacturing, access to low-cost capital, tax sops, etc. "Access to low-cost capital through soft loans, subsidised land and assured power and water supply combined with tax incentives and single-window clearance, would certainly build a stronger business case in India," said Pavan Choudary, Co-Chairman, CII Medical Technology Department. Regarding implementation of the PMA Policy, Chairman of CII Medical Technology Department Himanshu Baid said: "Without the availability of indigenous components, the PMA policy will not yield any results as already seen in the electronics and IT hardware sector since the last four years." "Before the implementation of PMA policy in medical devices and equipment sector, there is a need to properly analyse the components of manufacturing capabilities in India". The industry body emphasised that manufacturing business case in India is quite challenging.

Chinese Imports Choking Indian Enterprises
Source: The New Indian Express; August 10, 2015

Cheap Chinese imported items are giving tough competition to Indian micro, small and medium enterprises (MSME), parliament was told on Monday. These MSMEs manufacture electrical and electronics, mechanical and metallurgical and chemicals, glass and ceramic products. As many as 12 product groups, largely manufactured by the Indian MSMEs, were adversely affected by Chinese imports, according to the data compiled by the director general of commercial intelligence and statistics. "Imports from China for the 12 affected product groups grew at a higher rate than all the other countries combined during 2011-12 to 2014-15," union Minister for Micro Small and Medium Enterprises Kalraj Mishra told the Lok Sabha in a written reply on Monday. Indian imports from China for the 12 product groups accounted to 74 percent of the total imports from China in 2014-15," he added. "The government has been imposing anti-dumping duties, permitted under the WTO, for restricting imports when such imports have been established as unfairly affecting the market for goods and services produced by Indian industries," Mishra said. The anti-dumping duties are executed by the Directorate General of Anti-dumping and Allied Duties (DGAD). The government also imposes safeguard duties to protect domestic industries against a surge of imports from other countries.

Taiwanese electronics firms express interest in Sri City
Source: The Hindu Business line; August 11, 2015

A Taiwanese delegation of electronics industries toured Sri City industrial hub on Monday and expressed interest in setting up a manufacturing enclave. The team of over 20 members headed by Francis Tsai, Chairman, India Economic & Trade Committee of Taiwan Electrical and Electronic Manufactures' Association (TEEMA) and Vice Chairman, GETAC Technology Corporation visited Sri City on Monday.

The visit assumes importance in the backdrop of Taiwanese major Foxconn setting up a base for mobile phone manufacturing and rolling out India made Xiaomi phones. Kim Y C, Tsai, Chairman & CEO, Mobiletron Electronics Co., Ltd. and Director, TEEMA, and Samuel Kuo, President, Tyohm Electronic Works Co. Ltd., Director, TEEMA were part of the delegation which had the complete spectrum of manufacturers. Francis Tsai said, “All our members expressed satisfaction over the facilities available in the EMC and are impressed with the prevailing investment friendly climate. They are keen to set up production units here.” Satish Kamat, President, Sri City Operations outlined the features in the electronic manufacturing cluster (EMC) proposed at Sri City.

Make in India: Xiaomi teams up with Foxconn, Redmi 2 Prime manufactured in Andhra Pradesh
Source: Firstpost; August 11, 2015

Xiaomi has launched the all-new Redmi 2 Prime in India at Rs 6,999. Apart from the usual superior specs at affordable price, what sets the device apart is it adheres to PM Modi’s ‘Make in India’ initiative. Yesterday Hugo Barra had tweeted about the big leap clearly hinting at the Make in India announcement at Vizag in the pipeline. The event took place in Visakhapatnam and the device was announced in the presence of CM Nara Chandrababu Naidu and Amitabh Kant, Secretary, Department of Industrial Policy and Promotion (DIPP). Shri Nara Chandrababu Naidu said, “We have great faith in young leaders and young companies like Xiaomi. These new generation companies and entrepreneurs will be key to the success of Andhra Pradesh and India. We are happy to partner with Xiaomi as they set up their first manufacturing unit in India, as part of the Make in India program. We believe this partnership will provide new opportunities to youth of the state and develop an electronics manufacturing ecosystem of global standards in Andhra Pradesh. We welcome Xiaomi to Sunrise Andhra Pradesh and India.” Xiaomi has partnered with Foxconn to manufacture smartphones in India.

Internet of Things is worth $750-900 million in East India: Study
Source: Firstpost; August 11, 2015

Companies operating in the 'Internet of Things (IoT)' space have a potential to churn $750-900 million from the east Indian states, a study said. According to a joint report from PriceWaterhouseCoopers and Confederation of Indian Industries, West Bengal - which has the sole metro city in the east - is the most likely candidate to make the most of the concept, which enables objects to send and receive data at all times and communicate with each other using sensors and other micro devices. "Considering that West Bengal's share in the country's IT and ITeS revenue is around 4 percent, we can assume that the share of the eastern Indian states in the country's IoT revenue will be approximately 5 percent. This will mean potential revenue in the range of $750-900 million (roughly Rs. 4,781 crores - Rs. 5,737 crores) to be tapped from the region," the report said. The study said the five east Indian states are fast evolving as lucrative destinations for the information technology (IT) and information technology enabled service (ITeS) sectors. "While these regions were traditionally regarded as rich in terms of skilled resources and fostered academia through seminal educational institutions, they have been given a further boost through steps that are being taken by the respective governments for their digitization," it said.

Chinese vendors triple smartphone share in India
Source: PCWorld; August 11, 2015

Chinese vendors tripled shipments year-on-year in the second quarter in the Indian market, indicating that low-cost vendors are posing a challenge to global players like Apple in a very price-sensitive market.

The Chinese vendors have been successful by a combination of strategies, including online flash sales and by pushing low-cost 4G phones, priced at between US$100-150, a market that was unattended by Indian and global vendors, according to research firm IDC.

Lenovo, Xiaomi, Huawei and Gionee together got a 12 percent share of the Indian smartphone market, double from a year ago. Smaller Chinese vendors like Vivo, Oppo and OnePlus would have garnered less than 5 percent of the market, said IDC research manager Kiranjeet Kaur on Tuesday.

26.5 million smartphones were shipped to India in the second quarter of 2015, up by 44 percent from 18.4 million units for the same period last year, according to IDC. But almost 50 percent of the smartphones shipped in India were priced at below $100, which shows a significant difference between the Indian market and the neighboring Chinese market, where only about one-fifth of the smartphones sold were priced at sub-$100.

Foxconn becomes India's largest electronics manufacturer
Source: Manufacturing Global; August 11, 2015

Foxconn, the world’s largest contract electronics manufacturer, has signed a $5 billion deal to set up R&D and hi-tech manufacturing facilities in India within five years, according to reports. The $5 billion pledge is the largest foreign investment into India’s tech manufacturing sector and a boost for the government’s “Make in India” campaign. The Taiwan-based firm, which manufactures for a host of global device brands like Apple, BlackBerry, Amazon, Motorola, Xiaomi and Sony, has the bulk of its factories in China.

Also on Monday, leading Chinese smartphone maker Xiaomi announced that it will now manufacture its devices in India in partnership with Foxconn.

Going by the recent spate of announcements, Foxconn is becoming one of the most aggressive foreign investors in India. Last month, the company announced that it would inject $20 billion into India’s solar sector along with Japan’s SoftBank and India’s own telecom firm, Bharti. Reports suggested that another Foxconn joint venture with billionaire Gautam Adani’s Adani Group could focus on making iPhones and iPads.

Foxconn is also rumoured to have allocated billions of dollars for India’s e-commerce and technology startups, and is said to be close to finalizing a $500 million investment into online retailer, Snapdeal.

Karnataka to Sign MoU for Electronics Cluster
Source: The New Indian Express; August 12, 2015

Karnataka is taking a major step to emerge as a global hub for manufacture of electronic hardware by preparing the stage to sign a Memorandum of Understanding (MoU) with a Taiwanese group to set up an Electronics Industrial Cluster near Bengaluru International Airport, Devanahalli. The MoU will be signed with Taiwan Electronics and Electrical Manufacturers Association on Wednesday, Additional Chief Secretary in the Department of Commerce and Industries Ratnaprabha told Express. Karnataka’s move comes against the backdrop of Taiwanese electronics manufacturing giant Foxconn’s recent $5 billion deal with the Maharashtra government to set up a manufacturing unit in that state. Foxconn had shown interest to set up its manufacturing unit in Karnataka too. Its representatives had met officials from the State Industries Department in this connection. When asked whether Foxconn representatives too would be part of the Taiwanese delegation visiting the state, Ratnaprabha declined to divulge details. The Taiwanese Electronics Hardware cluster is to be developed on 300 acres by a Taiwanese realty company, Century Developers. More than 45 Taiwanese companies have shown interest to set up manufacturing units here.

Haryana's Industrial Policy: Special emphasis on MSMEs, incentives for mega projects in aerospace, defence sectors
Source: The New Indian Express; August 12, 2015

WITH A special focus on manufacturing and services enterprises, especially balanced regional growth of MSMEs, the Haryana government on Tuesday announced its new Industrial Policy. The government described the Industrial Policy as “Enterprises Promotion Policy 2015”, with an aim to envisage ease of doing business and enhancing competitiveness of the industry. The policy was approved by the State Cabinet that met under the chairmanship of Haryana Chief Minister, Manohar Lal Khattar, here today. “The new policy aims at attracting investment of over Rs one lakh crore, will create four lakh jobs and accelerate economic growth to more than eight per cent. The new Policy will catalyse Haryana’s position as a pre-eminent investment destination and facilitate balanced regional and sustainable development supported by a dynamic governance system and wide scale adoption of innovation and technology”, Khattar told mediapersons after the State Cabinet meeting. The government announced that Industrial Policy-2015 shall ensure a “hassle-free business” through a “new industrial regime by automatic approvals and decentralisation in the State”.

Pune set to become an Electronics Hub
Source: ET Telecom; August 12, 2015

The Union government has given its nod to the Pune-based Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) to set up a brownfield electronics cluster in Pimpri industrial area. The project will come up with a proposed investment of Rs 70.88 crore.

How does the MCCIA propose to go about the process?
The India Electronics and Semiconductor Association (IESA), a trade body representing the Indian electronics system design and manufacturing (ESDM) industry, is assisting the Maharashtra government in setting up this cluster. The trade body has signed a memorandum of understanding (MoU) with the MCCIA for collaboration under the EMC scheme of the Department of Electronics and Information Technology, Government of India. We have set up a special purpose vehicle called the MCCIA Electronics Cluster Foundation, which is a not-for-profit company under Section 8 of the Indian Companies Act. This SPV has invited other electronics manufacturing companies to become members. It proposes a financial model wherein the services of the common facility centre will be available for them at a low-cost on 'pay per use' basis. Non-members can also avail of these facilities.

UP inks Rs. 500 crore deal for IT clusters
Source: Hindustan Times; August 14, 2015

The state government on Thursday inked a memorandum of understanding (MoU) between Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) for establishment of Electronic Manufacturing Cluster (EMC) at Greater Noida. Apart from fetching an investment of ` 500 crore, the business agreement signed by UP Development Systems Corporation Ltd (UPDESCO) is expected to provide job opportunities to one lakh people. Chief secretary Alok Ranjan, who was present on the occasion, said 210 acres of land for establishing the first phase of EMC at Greater Noida had been allotted by the development authority. He said Taiwanese entrepreneurs would be setting up the units in this EMC. Later on, in the next phases, electrical and electronic manufacturers would be invited to set up their units on nearly 1000 acres of land under this project. Keeping in view the rising demand for electronic products, there were enormous possibilities of investment in this sector at Greater Noida, as it has excellent transport facilities, entrepreneurship, skilled manpower, technical expertise, the CS said.

Compiled by IESA Research

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