IESA WINWire Jan 17 - Jan 23, 2015
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9th Anniversary

Government to spend Rs 500 crore on tech training to 5.4 lakh people
Source: The Asian Age; January 18, 2015

Government will allocate Rs 400 crore more to a scheme that aims to train about 5.4 lakh people in next five years to cater to the demand of skilled manpower in electronics manufacturing sector.

The government has already approved Rs 100 crore for the first phase of the skill development scheme launched in November 2013. The scheme has been started in eight states of Andhra Pradesh, Telangana, Jammu and Kashmir, Karnataka, Kerala, Uttarakhand and Uttar Pradesh.

"Communications and IT Minister (Ravi Shankar Prasad) has approved second phase of scheme for skill development in electronics system design and manufacturing sector having outlay of over Rs 400 crore," an official source said.

Zee Business Ministerial Conclave: Ministers commit to making 'Make in India' a reality
Source: Daily News & Analysis; January 18, 2015

The vibrant discussion at the Zee Business Ministerial Conclave 2015 held on Friday at the Leela Palace covered every aspect of Prime Minister Narendra Modi's 'Make in India' mission, with the participating ministers expressing their full commitment to making it a reality.

Group chairman Dr Subhash Chandra said with commitment and faith nothing was impossible. He called on people to not dwell on negatives and concentrate on positives to achieve the goal, and begin with preparing a list of imported products that can be manufactured locally.

AP encourages students to develop apps
Source: The Times of India; January 18, 2015

With an eye on fostering entrepreneurial spirit among youth, the AP government on Saturday urged its students to develop apps at its upcoming skill development centres.

The state government will be launching 17 skill development centres all over the state. In fact, chief minister N Chandrababu Naidu will launch one such centre in Vijayawada on January 19 while the rest will be launched electronically, a release from the government said.

Raman sets off on ‘make in Chhattisgarh’ bandwagon
Source: The Times of India; January 18, 2015

Taking a cue from Prime Minister's make in India slogan, Chhattisgarh cabinet on Friday approved the state's industrial policy for 2014-19 with the essence of 'make in Chhattisgarh' by giving priority to manufacturing industries.

The industrial policy, which proposes earmarking of land for mega projects, special packages to promote small units and revival of sick and closed industries, was approved at a meeting chaired by chief minister Raman Singh.

Union Budget Likely To Provide Big Thrust to ‘Make In India’
Source: The Times of India; January 19, 2015

The BJP government's 'Make in India' initiative could get top billing in the 2015-16 Union Budget with tax breaks and other measures for several sectors. Make in India is the centerpiece of the Narendra Modi administration's bid to revive manufacturing activities and create millions of jobs. With the Chinese economy slowing, India senses an opportunity in the industrial sector.

A blueprint for the 25 identified sectors was presented to PM Modi late last month by the secretaries cutting across departments. The proposals, running into several pages, have been circulated to ministries and the budget is expected to give a final stance on several of the fiscal proposals. The tax proposals are part of the one-year roadmap identified by ministries. While some of the moves will boost domestic production and reduce imports, they will also make purchases lighter on your pocket. For instance, there is a recommendation to halve the excise duty on footwear to 6%. Similarly, the commerce department has suggested a reduction in the customs duty on gold and silver from 10% to 2%, a proposal which will have to be weighed in the context of the overall import bill and its impact on the exchange rate.

Soon, Incentives to Set Up BPOs in Small Towns: Telecom Minister
Source: NDTV Gadgets; January 19, 2015

Government will soon finalise a policy providing incentives to companies for setting up BPOs in small towns of the country, Telecom Minister Ravi Shankar Prasad said in New Delhi on Saturday.

"One of the things that I am engaged in is to have proper policy to have BPOs in small mofussil town of India with proper encouragement and incentives. That policy we are going to finalise," Prasad said while speaking at Global Business Summit.

He said the IT profile of India shows hubs in few limited cities like Gurgaon, Pune, Hyderabad, Chennai, Vijaywada, Bengaluru, and Mysore and this needs to be widened across the country, particularly, in small mofussil towns.

"Once that happens, I see a lot of allied activities going to happen. I am writing to chief ministers for provisions of electricity and incentives. Once a BPO comes in small mofussil town of India I see a different India, IT enabled India emerging, " Prasad said.

‘Make in MP’ can’t be achieved sans balanced labour laws
Source: The Freepress Journal; January 20, 2015

“Though, there is vast potential in Madhya Pradesh to become an electronic component manufacturing hub like Gujarat and Maharastra, the need of hour is change in approach of the State Government towards this sector. The labour laws have to be made more balanced and improvement in infrastructure needed for industrial areas. Till then, the dream of ‘Make in MP’ can’t be achieved.”

“Labour polices must be labour-friendly. I don’t support ‘hire & fire’ policy and all industries should not be considered as ‘anti-labour’,” says MD of Vishal Fab (India) Pvt Ltd Sunil Joshi while talking to this correspondent.

K’taka MSMEs to be crucial part of 400Bn Electronic Mfg.
Source: ELE Times; January 20, 2015

Bangalore’s Electronics City MSME cluster receives Rs 120Mn from Central and State governments to design and develop electronic products Monitoring the swelling annual demand across India from the current USD 71Bn to USD 400Bn by 2020 in the Electronics Systems Design and Manufacturing (ESDM) sector, a cluster formed by Micro, Small & Medium Enterprises (MSME) from Electronics City, Bangalore is aiming to cater to at least USD 80Bn of this domestic demand over the next six years. This newly formed cluster in Bangalore’s Electronics City has raised Rs 140Mn from both central and state governments as well as its own members, to support start-ups and SMEs to design, test and develop electronic products..

Government expects investment in electronics manufacturing to double in two years
Source: The Economic Times; January 20, 2015

The government expects investment proposals in electronics manufacturing to "more than double" in the two years to 2017-18, a top official told ET, giving a push to the government's 'Make in India' initiative.

Of 54 proposals received, the Centre has approved 30 requests entailing investments of Rs 6,000 crore, while 24 are in an "advanced stage" and are likely to be cleared before the end of this financial year, Ajay Kumar, joint secretary in the Department of Electronics & IT, told ET.

7 industry insights from semiconductor executives
Source: EE Times India: Electronics Design & Engineering; January 20, 2015

Samsung and GlobalFoundries are seen to get ahead of the race to ship 14/16nm chips this year, while some people express excitement over TSMC's second-generation 16nm process. These are some of the insights taken from the Industry Strategy Symposium, an annual gathering of semiconductor executives, held in California.

The bad news is 3D chip stacks will not be ready for smartphones anytime soon. On another sour note, it probably will take until 2016 before vertical NAND memories are shipping from multiple suppliers in significant volumes. And don't even talk about EUV—few of the attendees here did.

Infineon among The Most Sustainable Companies Worldwide For The Fifth Consecutive Time
Source:; January 21, 2015

Infineon Technologies AG has been included in the Sustainability Yearbook by the Swiss investment company RobecoSAM for the fifth consecutive time. Hence the German semiconductor manufacturer again ranks among the world’s 15 percent most sustainable companies.

Dominik Asam, Chief Financial Officer of Infineon Technologies AG and responsible for sustainability, says: “Once again Infineon is among the top 10 ranked companies of the semiconductor industry – a great acknowledgment of our efforts. Ecologic and economic sustainability is part of Infineon’s daily business. This can be seen in the way we interact with employees, customers and suppliers as well as with authorities and communities in which our sites are located worldwide.”

Push for 'Make in India': Government Set To Correct Taxation Anomalies
Source: The Economic Times; January 21, 2015

To make it more attractive to produce a range of products from diapers to LED lamps and boilers to textiles and electronics in India, the government is looking to correct anomalies in the taxation structure that make it cheaper to import such products than manufacture them locally. With an eye on boosting the Make In India programme, the finance ministry has asked the Tariff Commission to examine the industry's submissions about inverted duty structures in a range of sectors such as textiles, capital goods, engineering products, aluminium, steel and copper products, and yes, diapers. Inverted duties occur when the import duties on a finished product are lower than the import duties on its raw materials that local manufacturers need to rely on. The basic customs duty on diapers, for instance, is 10.64% with a countervailing duty of 6.18%. However, the import duties on the raw materials for diapers — poly film, lycra thread, waist elastic and super-absorbent material — are far higher. Imports from the ASEAN countries, which enjoy a special customs duty of just 3% on diapers, become more competitive. "Such a duty structure means the Indian manufacturer can't compete with imported alternatives," said an official, adding that there is a significant surge in imports in such sectors at the cost of idling domestic capacities.

Samsung and Apple Continue To Lead As Top Global Semiconductor Customers in 2014: Gartner
Source: Silicon India; January 21, 2015

Samsung Electronics and Apple remained the top semiconductor buyers in 2014, representing their combined semiconductor demand by 17 percent, according to Gartner, Inc. Samsung Electronics and Apple together consumed $57.9 billion of semiconductors in 2014, an increase of $3.9 billion from 2013. "Samsung Electronics and Apple have topped the semiconductor consumption table for four consecutive years and their decisions have considerable technology and pricing implications for the whole semiconductor industry," said Masatsune Yamaji, principal research analyst at Gartner. "However, while Samsung Electronics kept its position as the No. 1 largest customer of semiconductor chip vendors, its growth rate in 2014 was lower than the global semiconductor market's growth, firstly because it struggled in the smartphone market, and secondly because it is withdrawing from some parts of the PC market." The top 10 companies bought $125.6 billion of semiconductors, to account for 37 percent of semiconductor chip vendors' worldwide revenue in 2014. This was up from $114.8 billion, accounting for 36.4 percent in 2013. The top 10 outperformed the semiconductor buying market and grew by 9.4 percent overall.

Expect Major Shift in Electronics Manufacturing
Source: CXO; January 21, 2015

Vision summit, the annual flagship event of IESA, is celebrating its 10th year. Scheduled on February 2nd and 3rd at The Leela Palace, Bangalore, the two-day summit will have a number of exclusive sessions by analysts, experts from the government, as well as technology and business thought leaders from across the world. Prior to the summit, M.N. Vidyashankar, President, IESA speaks to CXOtoday about the focus of the Vision summit this year, the state of electronics manufacturing in India and challenges before IESA and other industry bodies to empower electronics manufacturing in the country.

Compiled by IESA Research

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