IESA WINWire June 20 - June 26, 2015
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'Make in India': Taiwan's Quanta Exploring Manufacturing Base in India
Source: IB Times; June 20, 2015

Taiwan's Quanta Computer Inc has said it is looking at setting up a manufacturing base in India. "We're gathering materials for evaluation. We're looking into it," Quanta vice-chairman C.C. Leung told reporters on Thursday after the company's annual investor conference. The company's manufacturing units are currently located in China. Apart from being the top contract manufacturer of personal computers, Quanta Computer Inc also assembles Apple watches, says a Reuters report. Leung said that many issues, especially those related to infrastructure, will be considererd before taking a decision. "Can you get convenient transportation and access to ports? Can you get the whole tech supply chain together?" he said. If the company does set up its unit in India, it will give a fillip to PM Narendra Modi's 'Make in India' initiative that aims to make the country a global manufacturing hub. Earlier, iPhone assembler Foxconn had said it would set up 10 to 12 manufacturing units in India by 2020. The electronics contract manufacturer seems to be in discussions with its top client Apple on the proposed investments in India. "Foxconn is sending a delegation of their officers to scout for locations in a month's time," Subhash Desai, Industries Minister of Maharashtra, had said on 12 June.

LG to produce smartphones in India if market share touches 10%
Source: The Economic Times; June 22, 2015

South Korean handset maker LG Electronics is looking to start manufacturing of smartphones in India once it gets to a 10 per cent market share, which it estimates could be achieved by December on the back of just-launched G4. It also plans to invest Rs 1,000 crore in 2015 on research and development (R&D) and marketing. "I reckon G4 is one of the best smartphones introduced in India lately. Leveraging this, my aim is to double our market share and increase the contribution of the of the mobile business to 15 per cent towards our overall revenue," Soon Kwon, managing director, LG India, told ET. "Once we hit the 10 per cent market share (in cellphones), manufacturing will eventually follow." The company currently has a market share of just under 5 per cent, as per market research firm GfK. Its mobile business contributes around 10 per cent toward overall India revenue. LG has two manufacturing units in the country that produce all its white goods, including refrigerators and ACs. Kwon didn't share more details on LG's handset manufacturing plans. The company joins a host of overseas handset makers including Xiaomi, Motorola and Asus, apart from homebred ones such as Micromax, Lava, Intex and Karbonn, that are examining local manufacturing plans. The government made imported phones more expensive.

US' firm BrightSKY commits Rs 500 cr for LED, telecom plant
Source: Business Standard; June 22, 2015

Florida-based company BrightSKY would set up a plant in Chhattisgarh for manufacturing electronics and telecom products. The company inked a deal to execute the proposal. The plant proposed to come up in Naya Raipur — the upcoming new capital city of Chhattisgarh — would manufacture light-emitting diode (LED) bulbs, telecom and 4G WiFi devices. The chief executive officer (CEO) of BrightSKY, Nick Shevillo, said the company had expertise in manufacturing telecom, cellular and LED devices. It had been operating in the US, Italy and China. “The plant would be equipped with modern technology and the products (in Chhattisgarh facility) will be manufactured with smart technique,” he added. The company officials said effective and advanced LED system, and devices would be made available in the state. They said the new generation 4G internet network should be spread across the country. High-speed internet service should be provided in the remote areas of the Bastar region, they added. Under the agreement, the Americian company would be investing Rs 500 crore in the project. It would generate direct and indirect employment for over 600 people. “The state government would provide all necessary assistance to the company (BrightSKY) for setting up the plant in Chhattisgarh and the officials have been given necessary direction in this regard,” Chief Minister Raman Singh said.

Hero Group to invest Rs 500 crore in electronics biz, acquires Mybox
Source: The Economic Times; June 22, 2015

The US$5 billion Brijmohan Lall Munjal - led Hero Group, with presence in over a dozen business verticals, today announced its foray into the rapidly growing electronics sector of the country, with the formation of a new company, 'Hero Electronix'. The decision aligns with the 'Make in India' vision of the government and will help the growth of the sector, further. As its first strategic initiaive, Hero Electronix will acquire a majority shareholding in Mybox Technologies , the largest multi operator manufacturer of set top boxes in the country. Mybox is a leading supplier to marquee DTH and cable operators across India. A company with strong research and development capabilities, Mybox is a venture recognized by the Government of India and approved by DSIR (Department of Scientific and Industrial Research). It is also one of the very few companies engaged in end-to-end design of indigenous set top boxes. The company has lined up investments of Rs. 500 crore in next few years. This will give a huge impetus to the 'Make in India' initiative by helping reduce the imports of electronics into the country." As per the estimates of India Electronic and Semiconductor Association (IESA), the imports of electronics into India currently stand at 65% of the overall demand.

Odisha aims to create 3 lakh jobs in next four years
Source: Business Standard; June 22, 2015

The Odisha government has set up an ambitious target of generating three lakh jobs in the next four years by boosting manufacturing sector. "Chief Minister Naveen Patnaik has asked the Industries department to prepare a road map aiming generation of three lakh employment and expedite the manufacturing sector," Industries Minister Debi Prasad Mishra told reporters here after a high level review meeting. Stating that Odisha's industries sector could achieve the employment target if it concentrated on the ancillary and small scale units, Mishra said the Reserve Bank of India (RBI) has already stated that Odisha attracted 27 per cent of investment in 2013-14. "We need to ensure implementation of investment proposals," the minister said. The chief minister has directed the department to prepare a plan so that 27 per cent of the state's gross domestic product comes from the manufacturing sector, Mishra said. Patnaik has also advised the department to finalise the guidelines for the SEZ policy and Industrial Policy Resolution 2015 soon in order to attract further investments in the state, he informed.

Micromax Invests in ixigo, India’s Leading Mobile Travel Business
Source: Techstory; June 22, 2015

In its pursuit to create a connected mobile services ecosystem, Micromax Informatics Limited, India’s leading smartphone handset player today announced that it has made a strategic investment in ixigo, India’s leading mobile travel search & marketplace. Popular for its innovative travel apps, ixigo helps Indian travellers plan their trips, find the best train & bus services, book cheapest flights, cabs, hotels and more. This investment would further reinforce Micromax’s foray into application services after having pioneered democratization of technology by delighting the consumers with its affordable and innovative product offerings. It will also give ixigo a reach of over 30 million incremental users over the next year.

Talking about the investment, Rahul Sharma, Co-founder, Micromax Informatics said, “Our vision is to seamlessly integrate innovative services into smart devices to create an ecosystem that is valuable for our users. We are really impressed with ixigo’s talented team & its mobile technology. We look forward to working closely with them to build on-demand and one-click travel experiences for Micromax consumers. We will be announcing more such partnerships over the next few months to accelerate our journey into services.”

Samsung Reaches New Milestone, Becomes India’s Biggest Single Brand Retailer
Source: Pitch (blog); June 22, 2015

With the launch of its 2100th exclusive brand store, Samsung has become the biggest chain of single brand retail stores in the country. The brand is celebrating with a 9 day Blue fest, with some of the best offers for consumers. The festival that began on June 20 will continue till June 29.

One of the offers will provide free device care for one year on 7 Smartphone models, which will make owning a Samsung device a pleasurable and stress-free experience. The device care will cover protection from physical and fluid damage for a period of one year on select Samsung Smartphones purchased between 20th and 28th June.

In addition, Samsung is offering up to 15% off on over 100 models of consumer electronics products such as TVs, ACs, Refrigerators, Washing Machines and Microwave Ovens.

SoftBank, Foxconn mull electronic manufacturing joint venture for India
Source: The Economic Times; June 23, 2015

Japan-based telecom and Internet major SoftBank Corp and Taiwan-based Foxconn Technology Group are in talks to form a joint venture for electronics manufacturing in India, as Prime Minister Narendra Modi's 'Make-in-India' push helps the country to become an attractive alternative to China as a manufacturing base.

Foxconn, the world's largest contract electronics manufacturer and maker of the iconic iPhones, will lead the new joint venture while SoftBank will support the former for the same, Masayoshi Son, Chairman & CEO of SoftBank told ET.

He however said that specific details are yet to be finalised, adding that an announcement will be made in sometime.

Foxconn had three plants on the Chennai-Bengaluru highway making phones and components for Nokia. After Nokia went belly-up, Foxconn too scaled down its production and eventually shut down all the three plants, the last of which was inside Nokia SEZ which closed in February.

Imec Expands Strategic Partnership with Toshiba and SanDisk
Source: NewswireToday; June 23, 2015

Nanoelectronics research center imec, announced today at the Imec Technology Forum 2015 (Brussels) that Toshiba Corporation, SanDisk Corporation and imec have expanded their strategic partnership with Toshiba and SanDisk joining imec’s industrial affiliation program on advanced patterning. This program tackles the critical challenges that remain in bringing EUVL to high volume manufacturing. The program also develops other technologies for extending 193nm immersion lithography. Toshiba and SanDisk have been core partners in imec’s industrial affiliation program in Advanced Memory since 2011.

“This expanded agreement with Toshiba and SanDisk represents the next step in our long-term strategic and fruitful partnership. We are proud to join forces and strengthen our collective research competence in advanced patterning,” said Luc Van den hove, President and CEO at imec. “The agreement is a testament of the industrial value and impact our R&D programs have on advanced semiconductor scaling. To date, this program, supported by our world-class infrastructure, represents the largest investment in advanced lithography equipment in the world.”

Transphorm gets $70-million funding
Source: The Hindu Business Line; June 23, 2015

Transphorm, an early stage semiconductor company, has announced a $70-million investment round led by global investment firm KKR.

KKR’s investment follows initial rounds of funding led by funds affiliated with Kleiner Perkins Caufield and Byers, Foundation Capital, Google Ventures, Soros Quantum Strategic Partners, INCJ and Fujitsu.

Transphorm will use this funding to support its growth, product innovation and expansion, the company said in a statement.

“Transphorm was launched to address the urgent and important problem of losses in power conversion, a process that converts electricity from the form it is delivered to the form that is ultimately used,” said Umesh Mishra, Chairman of Transphorm.

“By merging the technological leadership of Transphorm with the semiconductor business expertise of KKR, we are taking a major step forward in solving the global problem of energy wasted in power conversion,” Mishra added.

Foxconn’s second coming could spur a ‘Make in India’ wave
Source:; June 24, 2015

Foxconn Technology Co. Ltd, the world’s largest contract electronics maker, is evaluating plans to build several manufacturing facilities in India including one in a tie-up with Japanese telecom company SoftBank Corp., which is also one of the biggest investors in Chinese and Indian start-ups.

A re-entry into India by the Taiwanese company, which exited the country earlier this year, may spur other electronics makers to set up shop here and start the process of building a comprehensive, ground-up electronics supply chain that is essential for Prime Minister Narendra Modi’s ‘Make in India’ push, experts said.

An eager, business-friendly government and the Indian consumption story, which had lost its sheen over the past three years, may finally attract wary manufacturers.

Hero Group diversifies into Electronics Sector with 'Hero Electronix'
Source:; June 24, 2015

The US$5 billion Brijmohan Lall Munjal led Hero Group, with presence in over a dozen business verticals, has announced its foray into the rapidly growing electronics sector of the country, with the formation of a new company, 'Hero Electronix'. The decision aligns with the 'Make in India' vision of the government and will help the growth of the sector, further.

03 Hero Electronix Logo - RGB 200.JPG
As its first strategic initiative, Hero Electronix will acquire a majority shareholding in Mybox Technologies Pvt Ltd, the largest multi operator manufacturer of set top boxes in the country. Mybox is a leading supplier to marquee DTH and cable operators across India. A company with strong R&D capabilities, Mybox is a venture recognised by the Government of India and approved by DSIR (Department of Scientific and Industrial Research). It is also one of the very few companies engaged in end-to-end design of indigenous set top boxes.

Startups to get easier access to capital
Source: The Times of India; June 24, 2015

According to Ravi Gururaj, chairman, Nasscom Product Council, easier access to capital is crucial to sustain the hyper-growth the country is currently witnessing in the India's startup ecosystem. "The Sebi's decision on the institutional trading platform...relating to broader access to capital, shorter lock-in period, simplified disclosure norms and more liberal valuation parameters will all prove very startup-friendly," he said. Nasscom, the IT industry trade body, was one of the institutionsSebi had consulted while framing guidelines for the startup platform. The startup platform, however, is expected to pick up pace in providing capital to its target companies over the next few years and may not be a fast-paced affair, said Sharad Sharma, co-founder, iSpirt. "It's a positive development and we will see value being created over the next 10 years. In the US, 43% of stock market valuation is cornered by tech companies. In India, this number is 13%, and this will eventually go up," Sharma said.

Promote Mysuru as industrial hub: CII
Source: The Hindu; June 25, 2015

The Confederation of Indian Industries (CII), Mysuru, has urged the State government to develop Mysuru into an industrial hub, particularly for electronic industry.

During an interactive session with Commissioner for Industrial Development Gaurav Gupta here on Tuesday, Chairman of CII, Mysuru, N. Muthukumar, said Mysuru was not only the next IT and ITeS (Information Technology enabled Services) hub after Bengaluru, but had also emerged as the ‘Electronics Engineering’ hub of the State with a majority of the electronics product design and engineering companies operating out of the city.

With many Taiwan companies planning to relocate to India, CII was hoping the State government would promote Mysuru as a destination for them to set up shop, a source in CII said.

Mr. Gupta, in his address, pointed out that Taiwan was planning to establish the Taiwan Electronic Manufacturing cluster and their representatives had recently visited Bengaluru, Kolar and other neighbouring places to identify suitable locations.

Lenovo eyeing smartphones manufacturing unit in India
Source: The Hindu; June 25, 2015

Chinese electronics major Lenovo is looking at the possibility of setting up a manufacturing unit for smartphones and tablets in India.
The company already has a computer manufacturing plant in Puducherry.

“We are exploring the opportunity of setting up a manufacturing unit in the country,” Bhaskar Choudhuri, director (marketing) of Lenovo India said.

This is particularly because of the government’s impetus on ‘Make in India’ as well as the huge opportunity which country presents, he said.

Lenovo, which enjoys leadership positions in sales of laptops, PCs and tablets in India, is also planning to aggressively boost smartphone business in the country.

Compiled by IESA Research

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