IESA WINWire July 11 - July 17, 2015
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Govt launches Rs. 5,000 crore project for northeast's telecom infrastructure
Source: ET Telecom; July 11, 2015

The central government has launched a Rs. 5,000 crore ambitious project for the development of telecommunications in the northeastern states, union minister Ravi Shankar Prasad said here on Saturday. The project will be implemented in the next five years, the minister for communications and information technology said after laying the foundation stone to operationalise the new international internet gateway linking Cox's Bazar in southeast Bangladesh. After the commissioning of the international internet gateway, northeast India would be at par with the rest of the country in internet connectivity, thereby boosting the region's economy, education, tourism, banking and other services, he said. "Prime Minister Narendra Modi has said development of India will remain incomplete if the northeast region continues to be underdeveloped." He said the Digital India initiative that was launched on July 1 by Modi will transform the country.

Tata Motors secures Rs. 900 crore order from Indian Army
Source: Mint; July 11, 2015

India’s biggest auto maker Tata Motors Ltd expects to double revenue from the defence business to Rs.3,000 crore in three years as the Indian government encourages manufacturing of military equipment by local companies via the “Make In India” programme. “The current order book is Rs.1,500 crore and we want to double it in next three years. The ministry of defence intends to promote indigenous supply base for FICV (futuristic infantry combat vehicle),” said Vernon Noronha, the company’s vice-president, defence and government business. Prime Minister Narendra Modi’s emphasis on defence equipment forming part of his Make in India campaign to encourage manufacturing and attract foreign investment has seen a scramble among companies readying manufacturing capabilities in the segment. India’s defence budget allocation ie estimated at $620 billion between fiscal years 2014 and 2022, of which 50% will be capital expenditure, according to a report released in February by lobby group Federation of Indian Chambers of Commerce and Industry and financial services company Centrum Capital Ltd.

Why Foxconn is looking at India as its Next Manufacturing Hub?
Source: Tele Analysis; July 12, 2015

On his recent India visit, Terry Gou, founder of Foxconn announced opening up of 10-12 manufacturing facilities and creating one million jobs by 2020 in India.

Why is Foxconn looking at India as its next manufacturing hub?

Over the years, Foxconn has build its core competencies in the field of ICT, precision machinery, opto electronics, materials, automation equipment, software, e-commerce to build up an “Integration, Innovation, Design, Manufacture – Sales, Marketing” (IIDM-SM) technology manufacturing and services platform. And Foxconn wants to leverage on IIDM-SM and also add new growth opportunities by building India as its next manufacturing hub after China. All this will help the company to grow in new geographies and also increase its market share in respective categories.

Foxconn is looking at India for four reasons – Chinese economy, India opportunity, government support, building complete eco-system and export market

Odisha on the radar of mobile handset makers
Source: Business Standard; July 12, 2015

Odisha may emerge as the manufacturing hub of mobile handsets and associated components with its proposed electronics manufacturing cluster (EMC) drawing the attention of manufacturers.

The Indian Cellular Association (ICA), the apex body of the mobile phone industry, is in talks with the state government to explore possibilities of manufacture of mobile phones and their components here.

"We have initiated discussions with the Odisha government. Preliminary talks have been held with the industries and IT departments. The proposed EMC seems to be a good site for mobile handsets and electronic components manufacturing. Apart from Odisha, we are in talks with the governments of Uttar Pradesh, Maharashtra, Telengana, Gujarat and Andhra Pradesh", said Pankaj Mohindroo, national president, ICA and chairman of the fast track task force constituted by the Department of Electronics and Information Technology (DeiTY). The proposed greenfield EMC cluster planned over 215 acres of land on the city's outskirts, is expected to house over 100 electronics manufacturing units with an employment potential of 10,000-12,000 which will be a mix of skilled and semi-skilled personnel. The state hopes to draw investments of over Rs 2000 crore for this cluster.

Gartner Says Worldwide Semiconductor Sales Expected To Reach $348 Billion in 2015, a 2.2 Per Cent Increase From 2014
Source:; July 12, 2015

Worldwide semiconductor revenue is forecast to reach $348 billion in 2015, a 2.2 percent increase from 2014, but down from the previous quarter's forecast of 4.0 percent growth, according to Gartner, Inc.

"The outlook for the major applications that drive the semiconductor market, including PCs, smartphones, and tablets, have all been revised downward. This, combined with the impact of the strong dollar on demand in key markets, has resulted in a lower semiconductor forecast for 2015," said Jon Erensen, research director at Gartner. "The typical second-quarter bounce did not materialize this year, and as a result, the semiconductor industry is more back-end loaded and dependent on a strong third-quarter rebound, driven by Windows 10 and the ramp-up to the holiday season.”

In the smartphone market, Apple's iPhone is the bright spot for the market with strong unit growth and increasing average selling prices (ASPs), driven by the strong performance of the iPhone 6 and iPhone 6 Plus.

Govt to appoint CEOs for smart cities
Source: The Times of India; July 12, 2015

For smart cities, the government will appoint CEOs, who will drive the concept and execution rather than leave these tasks to municipal bodies alone. The guidelines released by government for rolling out the scheme to develop 100 smart cities says that each smart city will have a special purpose vehicle (SPV) like that for Metro rail projects where managing directors are sole in-charge. These will be will be headed by a full time CEO for a fixed term of three years. The SPV will also have nominees of Centre and state governments besides representatives from urban local bodies. Sources said this is a part of the major institutional reform that has been introduced to expedite execution. "Government officers, senior corporate executives and even independent experts can be hired for this job," said a ministry official. However, the SPV will also have a board of directors, which will be headed by a divisional commissioner, collector, municipal commissioner or head of development authority.

Karbonn to invest Rs 800 Cr for mobile production in India
Source: Moneycontrol; July 13, 2015

Home grown mobile phone company Karbonn has earmarked an investment of Rs 800 crore over a period of next three years for manufacturing mobile phones in India. "We will be investing up to Rs 800 crore on mobile devices manufacturing in the next three years. Production at ourNoida plant in UP and Telangana plant will start within the next two quarters," Karbonn Mobiles Executive Director Shashin Devsare told PTI. "In a year, we expect local production to meet 60-70 percent of our domestic market requirement," he added. According to Cybermedia Research report of 2014, Karbonn Mobiles was one of the main contenders for the third position in terms of market share in mobile devices business in India. "We are not dependent on external funding. We are the only brand that has announced two manufacturing unit. Out of the total, Rs 450 crore has been allocated for our Telengana plant and Rs 100 crore we have invested in setting up Noida assembly unit," Devsare said. Karbonn is a joint venture between Jaina Group and Bangalore based electronics manufacturing firm United Telecom Limited. The company will be looking at making entry level phones priced in the range of Rs 2,000- 7,000 a unit. Mobile phone companies are looking to make handsets in India after the government in its budget increased duty for imported devices.

Texas Instruments mulls partnerships with start-ups
Source: The Hindu Business Line; July 13, 2015

Semiconductor major Texas Instruments is looking to partner with start-ups in India to quicken chip development cycles and go to market faster in new areas such as automotive and industrial machines.

Talking to BusinessLine, Santhosh Kumar, Managing Director of Texas Instruments India, said that while the company is using its R&D facility in Bengaluru to do its technology work, it also believes that partnerships are important to be at the cutting edge of innovation. “Our strength is in analog chip design and with trends like Internet of Things (IoT) catching up, start-ups could help speed up our growth,” he added.

An analog chip is a set of small analog circuits that are designed on a single piece of semiconductor board. “We are constantly looking at ways to fasten chip development process,” said Kumar.

Only `Made in India' Chips for Defence
Source: Economic Times Epaper (Kolkata); July 14, 2015

India is considering a proposal to make it mandatory for the strategic sectors of Defence, Space and Atomic Energy to use `made in India' chips in an initiative that will meet not only national security needs but also kick start the domestic semiconductor manufacturing business that has been struggling to take off.

Sources said that preliminarily talks on the matter have already taken place and a meeting that included top government representatives from the strategic departments of space, atomic energy , information technology and defence research took place at the Niti Ayog recently.

M N Vidyashankar, President of the India Electronics & Semiconductor Association (IESA) told ET that the government initiative to promote India made chips in the strategic sector will be a `major boost'. “It will be a good kick start to the industry. Given the kind of funding required, investors are in two opinions. There will be a lot of comfort is there is a defined market that includes defence, space and other strategic areas,“ he said.

Make in India: Govt may make strategic sector source chips from local manufacturers
Source: The Economic Times; July 14, 2015

India is considering a proposal to make it mandatory for the strategic sectors of Defence, Space and Atomic Energy to use 'made in India' chips in an initiative that will meet not only national security needs but also kick start the domestic semi-conductor manufacturing business that has been struggling to take off. Sources said that preliminarily talks on the matter have already taken place and a meeting that included top government representatives from the strategic departments of of space, atomic energy, information technology and defence research took place at the Niti Aayog recently.

At the heart of the issue is the setting up of two semi-conductor fabrication facilities in India that were cleared by the UPA government in 2013 but have still not taken off given a lack of direction and government support for the very high investment units. Officials say that the government is aware that 'Made in India' chips and electronics are necessary in national interest, given the dependence currently India has on imported products that can be rigged and bugged. "There is a fear of overdependence on foreign sources for such a vital thing. Cases of spurious and even suspicious electronic parts from abroad have come to light, making it necessary for at least the core strategic sectors to have an Indian option," an senior official told ET.

China's Tsinghua prepares $23 bln bid for U.S. chip maker Micron – sources
Source: MSN India News; July 14, 2015

China's state-backed Tsinghua Unigroup Ltd is preparing a $23 billion bid for U.S. memory chip maker Micron Technology Inc (MU.O), in what would be the biggest Chinese takeover of a U.S. company, people familiar with the matter said.

The technology conglomerate is prepared to bid $21 per share for Micron, a 19.3 percent premium to the stock's close on Monday. The offer could come as early as Wednesday, a person close to Tsinghua told Reuters, although a Micron spokesman said it had not received an offer.

A successful bid would consolidate Tsinghua Unigroup's position as a champion for China's technology development, after it struck deals and research partnerships with international firms in the semiconductor industry.

The company is controlled by Tsinghua University in Beijing, which counts President Xi Jinping among its alumni, and is backed by China's central government.

China has attached strategic importance to the development of domestic semiconductor, server and networking equipment industries amid fears of foreign cyberspying.

electronica India 2015 and productronica India 2015 set for unprecedented success
Source:; July 14, 2015

electronica India 2015 and productronica India 2015, the leading trade fairs for electronic components and manufacturing, will take place from September 9-11, 2015. The events are appreciated by the stakeholders as it takes a 360 degree view of the electronics industry as a whole, all under one roof. Two months before the trade fairs will open their gates, the exhibition space of electronica India is sold out and over 80 per cent for productronica India 2015 have already been booked, with a fast developing waiting list of exhibitors. International key players and innovative companies from different continents will take part at electronica India and productronica India.

The ecosystem around the electronic components and electronic manufacturing companies has reached a marked improvement by the general economic recovery and the financial and economic crises. All sectors of this industry are now heading for growth.

With the Government of India's flagship program 'Make in India' - to push local manufacturing - and initiatives like 'Smart Cities' and 'Digital India', the industry expects to reduce its dependency on electronic import by 50 per cent by 2016-17.

IT, telecom firms chip in with Skill India programmes
Source: The Hindu Business Line; July 15, 2015

Technology and telecommunication companies on Wednesday said they will initiate different programmes as part of the Skill India Mission announced by Prime Minister Narendra Modi.

The Cellular Operators Association of India, which represents major telecom operators including Airtel, Vodafone and Idea Cellular, has announced an outreach programme to connect with 440 million young people for promoting the ambitious Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme for which aims to skill 24 lakh youth across the country within a year.

One of the biggest hurdles facing skills training in India is reaching out to the youth in the remote areas of the country. COAI’s outreach programme, aims to address this challenge. Initially, a pilot project in Bihar covered a subscriber base of over 2.2 crore people and the same is now being rolled out nationwide by the COAI core members to cover nearly 440 million subscribers with the launch of the PMKVY scheme.

China's Huawei gets security clearance to manufacture in India for booming market
Source: Reuters India; July 16, 2015

Chinese telecoms giant Huawei Technologies has won security clearance to manufacture telecoms equipment in India, paving the way for it to become the first major Chinese brand to supply locally made products for one of the world's biggest markets for mobile phones.

The green light from the Ministry of Home Affairs, confirmed by an official on Wednesday, comes 19 months after Huawei first applied for a manufacturing licence, amid wrangling over national security concerns. It also marks a significant boost for Prime Minister Narendra Modi's 'Make in India' campaign.

"India is an important overseas market for Huawei," Allen Wang, president of Huawei's consumer business group in India, told Reuters on Wednesday. "We aim to become a top three brand in India within three years."

A spokesman for Huawei in India said separately the firm had not received official communication from the government, and declined to comment further

Microsoft’s YouthSpark to train 35,000 youth by 2016
Source: Cybermedia India Online Limited News; July 16, 2015

Welcoming Prime Minister Narendra Modi’s goal to develop a bank of skilled India through his National Mission for Skill Development (NMSD), software major Microsoft said that it will train more than 35,000 youths in the next 18 months.

“Our digital literacy, skill building and entrepreneurship programs have touched 5 crore people in 20 states across India over the last decade. Continuing this commitment, we will soon commence a large scale digital literacy project under the global Microsoft YouthSpark program for marginalized communities, with a special focus on girls and young women. This program will run across 70 YouthSpark-Project Jyoti centers and is expected to train more than 35,000 young people in the next 18 months,” informed Bhaskar Pramanik, Chairman, Microsoft India.

IESA welcomes the launch of the mission since it targets to harness the country’s demographic dividend through appropriate and large scale skill development effort, which in turn should make India a country of choice to address global skill shortage.

Compiled by IESA Research

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