Menu

Semiconductors

India’s Data Center Doubling by 2026: What It Means for Infrastructure Investors
Economy, Equities - September 24, 2025

India’s Data Center Doubling by 2026: What It Means for Infrastructure Investors

India’s Data Center Doubling by 2026: What It Means for Infrastructure Investors

The confluence of AI, cloud growth, electrification, and digital services is stressing legacy infrastructure — especially power generation, transmission, and cooling systems. As hyperscalers scale up compute and data center capacity, they demand reliable, low-latency, high-capacity power. But many electricity grids, in India and globally, were not built for the load profiles of AI-supercomputing (high density, variable load, high PUE requirements).
* In 2025, Big Tech (Amazon, Google, Meta, Microsoft) are expected to invest more than US$400 billion in capital expenditure, of which a significant portion goes to data center expansion.
* Globally, McKinsey forecasts that AI workloads will push data center capacity demand 3.5× between 2025 and 2030.
* In the US, data center electricity demand is projected to rise steeply: grids are under strain, and new projects often struggle to get timely grid access or permits.
Hence, infrastructure bottlenecks—especially in power generation, transmission, grid upgrades, cooling, and connectivity—are now a limiting factor on growth, not just compute or chip supply.

India’s data center sector and the “doubling by 2026” projection
That claim—that India’s data center capacity will roughly double by 2026—has grounding in multiple industry projections, though with varying baselines.
* As of 2024, India’s installed data center capacity is often cited around 950 MW (megawatts) for power draw / capacity.
* JLL projects that by end of 2027, India will add 795 MW, rising total to 1,825 MW (i.e. nearly doubling from ~1,025 MW baseline) by then.
* Some forecasts expect India to reach ~1,645 MW by 2026, up from ~835 MW in 2023 (i.e. about a 2× increase) per a market pulse source.
* More aggressive Indian growth forecasts place India’s data center capacity crossing 4,500 MW by 2030, with US$20–25 billion investment in the next 5–6 years.
* India’s data center market is expected to grow to US$24.78 billion by 2033, reflecting strong long-term compounding.
Thus, “doubling by 2026” is a reasonable, moderate assumption (depending on baseline), especially given government push, cloud expansion, digitalization, and data localization rules.

Opportunities in power, transmission, grid modernization, digital infrastructure
1. Onsite / distributed power generation: Because grid access is often delayed by regulatory, permitting or infrastructural constraints, many new data centers are turning to localized power — solar + battery + gas turbines or fuel cells. The 2025 Data Center Power Report (Bloom Energy) indicates that by 2030, about 30% of new sites will rely on onsite power (in “islanded mode”) at least partly. This helps them bypass transmission bottlenecks or grid delays.
2. Transmission and substation upgrades: Even if a data center has generation, it still needs robust, low-loss transmission lines, high voltage substations, and backup paths. Upgrading or building new transmission corridors, high-capacity lines, or “last-mile” power infrastructure is costly and constrained in many jurisdictions.
3. Cooling, thermal management, and water systems: Modern AI compute is high density. Traditional air cooling is increasingly inadequate; many facilities are adopting liquid cooling, immersion cooling, or direct chip cooling. These systems demand more precise infrastructure — chilled water loops, high-capacity pumps, robust plumbing, and redundancy. Industry trend watchers rank liquid cooling and immersion among the top themes shaping data centers in 2025.
4. Grid modernization, smart grid, energy storage: To integrate variable generation (solar, wind), reduce transmission losses, and manage peak loads, grid modernization is essential. Energy storage (batteries, pumped storage) and demand flexibility become key components. Data centers that can flex load or act as grid “demand response” participants may unlock new revenue channels. Indeed, a recent academic study showed that AI-centric HPC data centers can offer grid flexibility at ~50% lower cost than general-purpose HPC centers, by scheduling load intelligently.
5. Digital infrastructure ecosystem: This includes fiber-optic backbone, edge data centers, network backhaul, interconnection, and metro fiber densification. As compute becomes more distributed (edge + national hubs) you need robust connectivity, fiber rings, inter-data center links, and low-latency paths. Each meter of fibre, switching, optical gear, routers, and optical amplifiers is part of “digital infrastructure”.

Risks, constraints, and bottlenecks to watch
While the opportunity is massive, there are constraints:
* Permitting and regulatory delays: Acquiring grid access, environment approvals, land rights, and utility permissions can take years in many jurisdictions.
* Power supply reliability and fuel costs: In some regions, grid-supplied power is intermittent or expensive; local power cost volatility (fuel, gas, backup diesel) can erode margins.
* Water scarcity and cooling constraints: High-density cooling often requires large water usage or chilling facilities; regions with water stress may struggle.
* Capital intensity and upfront time: These projects are capital intensive and have long lead times; firms need strong balance sheets and patient capital.
* Technology risk: Advances in compute efficiency, cooling methods, or chip architectures could reduce power or infrastructure demands, undermining current investments.
* Carbon intensity / ESG constraints: As data centers scale, carbon footprints and regulatory pressure for clean energy sourcing increase. Some projects may be penalized or require carbon offsets.

Why this matters to an investor or asset allocator
Understanding this bottleneck-driven opportunity helps investors spot second- and third-order winners, not just the front-line cloud providers or chip makers. Some potential beneficiary classes:
* Developers/builders of data center campuses who own land + infrastructure rights
* Power generation / distributed energy / microgrid firms
* Transmission & distribution companies doing grid upgrades or switching
* Cooling / HVAC / immersion engineering firms
* Fibre, interconnect, backbone and metro networking providers
* Energy storage and battery systems manufacturers
* REITs / infrastructure funds that specialize in digital infrastructure (if available in your region)
In screening or valuing, investors should look at capital intensity, power cost per watt, PUE (Power Usage Effectiveness), availability of onsite generation, and connectivity redundancy.

Conclusion
The AI era is not simply about chips and algorithms — it is about the colossal infrastructure needed to power them. With global data-center capacity set to triple between 2025 and 2030 and India’s own market projected to double by 2026, the bottleneck lies squarely in energy, transmission, cooling, and digital connectivity. For investors, this presents both a challenge and an opportunity. Those who understand metrics like capex-to-sales ratios, PUE efficiency, and gross margins in memory supply chains can separate durable compounders from speculative plays. The investment frontier is expanding: not just semiconductors and cloud providers, but also power producers, REITs, InvITs, grid-modernization firms, and digital infrastructure developers are poised to capture the upside of this structural supercycle. Prudent allocation today means building resilience into portfolios while riding the wave of AI-driven demand tomorrow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Investment Strategies in an Era of Tariffs: India’s Emerging Role in Global Trade Networks

, , , , , 0 Comment
Read More
Semiconductor Market Set to Cross $1 Trillion by 2030
Economy, Equities, Market News, Markets - September 15, 2025

Semiconductor Market Set to Cross $1 Trillion by 2030

Semiconductor Market Set to Cross $1 Trillion by 2030

PwC forecasts global semiconductor revenues to grow from $627 billion in 2024 to $1.03 trillion by 2030. AI, EVs, cloud computing, and consumer electronics are fueling the industry’s rapid expansion.

A Trillion-Dollar Industry in the Making
The semiconductor industry, often described as the backbone of the digital economy, is poised for unprecedented growth. According to PwC’s latest report, the global semiconductor market is expected to surge from $627 billion in 2024 to $1.03 trillion by 2030, reflecting a robust compound annual growth rate (CAGR) of 8.6%.
This expansion is fueled by accelerating demand for advanced chips across industries, as technologies like artificial intelligence (AI), electric vehicles, and data-driven business models reshape the global economic landscape.

Key Growth Drivers
Artificial Intelligence (AI) at the Core
The rapid adoption of AI in everything from generative models to enterprise automation has created insatiable demand for specialized chips and accelerators. High-performance semiconductors are essential to power machine learning training and inference, cloud AI services, and AI-driven devices at the edge.
Automotive Transformation
The shift to electric vehicles (EVs) and autonomous driving is redefining the role of semiconductors in mobility. Cars are no longer mechanical-first machines but are becoming computers on wheels, requiring system-on-chips (SoCs), sensors, and advanced power electronics. Analysts estimate that the semiconductor content per car could triple by 2030, making automotive one of the fastest-growing end markets.
Data Centers & Cloud Infrastructure
The global migration to the cloud, coupled with exponential data creation, is driving relentless demand for high-performance processors, memory modules, and interconnect solutions. As hyperscalers like AWS, Google, and Microsoft expand capacity, semiconductors remain the core enablers of scalability and efficiency.
Consumer Electronics Demand
Smartphones, wearables, tablets, and connected home devices continue to sustain steady semiconductor consumption. The next wave of augmented reality (AR) and virtual reality (VR) devices, powered by more compact and energy-efficient chips, promises to extend this trend further.

Emerging Industry Trends
The semiconductor industry is not only expanding in size but also undergoing transformational shifts:
• Heterogeneous Integration & Chiplets: Moving away from monolithic designs, chiplets enable cost-effective scaling while boosting performance and flexibility.
• Supply Chain Diversification: Governments are incentivizing local fabrication to reduce dependency on Asia, leading to new fabs in the US, Europe, and India.
• Sustainability Concerns: With energy-intensive fabs and growing demand, companies are under pressure to adopt greener manufacturing practices.
• Talent Competition: Semiconductor design and fabrication are facing global talent shortages, pushing companies to diversify hiring geographies.

Asia-Pacific: The Powerhouse of Chips
Asia-Pacific remains the undisputed leader, contributing more than 80% of global semiconductor revenues and serving as the world’s largest production hub. Taiwan, South Korea, Japan, and China dominate fabrication, assembly, and packaging, supported by strong regional ecosystems.
Despite geopolitical challenges and efforts to diversify supply chains, Asia-Pacific’s dominance is expected to persist, driven by scale, expertise, and cost efficiencies.

India’s Emerging Role in the Semiconductor Ecosystem
India, while a nascent player in fabrication, is carving out a strong position in design and demand. Currently, nearly 20% of the global semiconductor design workforce is based in India, contributing to chip architecture for leading global firms.
The Indian government has rolled out multiple incentives under its Semicon India program, attracting investments in both design and manufacturing. Domestic semiconductor demand is projected to double by 2030, powered by:
• Rapid adoption of smartphones and IoT devices
• Growth in automotive electronics and EVs
• Expanding cloud and data center investments
• Supportive policy frameworks and partnerships with global chipmakers
While it may take years for India to match the fabrication prowess of Taiwan or South Korea, its design talent and growing domestic demand position it as a strategic player in the global supply chain.

What This Means for Businesses and Investors
The trillion-dollar semiconductor future has implications beyond technology companies:
• Investors can expect long-term growth supported by secular demand drivers. However, they must monitor risks around supply chain disruptions, geopolitical tensions, and capital intensity.
• Businesses across sectors must factor semiconductor availability into their strategies, as chips underpin everything from logistics to healthcare.
• Governments will continue competing for semiconductor independence, with policy decisions influencing global market dynamics.

Conclusion: The Backbone of Tomorrow’s Economy
The semiconductor market’s trajectory toward $1.03 trillion by 2030 is more than just a growth story — it reflects the central role of chips in shaping the modern world. From powering AI breakthroughs to enabling electric mobility and cloud computing, semiconductors are the invisible force behind innovation.
India’s growing role in chip design and its push into manufacturing further illustrate how new players are joining the global ecosystem. As the industry expands, it will not only drive economic growth but also reshape geopolitics, sustainability priorities, and technological progress.
For investors, policymakers, and businesses alike, one thing is clear: the future will be built on silicon.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

Vodafone Idea, Anant Raj & Railway Plays Drive Smallcap, Midcap Rally

, , , , , 0 Comment
Read More
Kaynes Technology Faces Investor Scrutiny as CEO Steps Down Despite Strong Fundamentals
business update - June 4, 2025

Tata Electronics Sets Sights on Malaysia for Chip Fab Acquisition

Tata Electronics Sets Sights on Malaysia for Chip Fab Acquisition

Indian conglomerate Tata Electronics is nearing an agreement to acquire a semiconductor plant in Malaysia, seeking to accelerate its global expansion and enhance technical capabilities ahead of significant chip manufacturing ventures planned in India.

Introduction
As the global semiconductor race intensifies, Tata Electronics is preparing to make a landmark overseas investment. The company is in advanced discussions to acquire a semiconductor fabrication or OSAT facility in Malaysia, a country recognized for its deep expertise in chip assembly, testing, and packaging. This acquisition is poised to accelerate Tata’s learning curve and operational readiness as it prepares to launch large-scale chip manufacturing operations in India.

Why Malaysia? The Strategic Rationale
Malaysia is recognized as a favoured hub for semiconductor manufacturing due to several factors:
• Mature Ecosystem: The country boasts a well-established base of chip fabrication, assembly, and testing facilities, supported by decades of industry experience.
• Skilled Workforce: Malaysia offers a deep pool of technical talent, from engineers to operators, essential for high-precision semiconductor processes.
• Government Support: Proactive policies and incentives have made Malaysia a magnet for global electronics and semiconductor firms.
• Proximity to Supply Chains: Its location within ASEAN provides easy access to critical suppliers and customers in the region.
For Tata Electronics, entering Malaysia is not just about acquiring assets—it’s about tapping into a knowledge-rich environment that can help the company leapfrog the steep learning curve of semiconductor manufacturing.

The Acquisition Targets
According to sources, Tata Electronics is in negotiations with key Malaysian semiconductor companies, among them:
• DNeX’s SilTerra: A leading local foundry with advanced capabilities in chip fabrication and packaging.
• Globetronics Technology: Known for its expertise in assembly and testing, offering a relatively low entry cost for acquirers.
• X-Fab: An international company operating in Malaysia, focused on mixed-signal semiconductor foundry services.
These potential targets offer Tata an opportunity to acquire not just physical infrastructure, but also operational expertise, established client relationships, and a trained workforce.

Leadership and Execution
The acquisition initiative is spearheaded by KC Ang, the recently appointed president of Tata Semiconductor Manufacturing. Ang brings over three decades of experience in the global foundry business, including senior leadership roles at Global Foundries and SilTerra Malaysia. His deep industry knowledge and local connections are seen as crucial to the success of Tata’s Malaysia foray.

Boosting India’s Semiconductor Ambitions
Tata Electronics’ initiative is directly connected to its bold expansion plans in India:
• Dholera, Gujarat: Tata has committed ₹91,000 crore to build a greenfield chip fabrication plant, aiming to establish India as a major semiconductor hub.
• Morigaon, Assam: An additional ₹27,000 crore is earmarked for an OSAT facility, focusing on chip assembly and packaging.
By acquiring a running facility in Malaysia, Tata aims to import best practices, technical know-how, and managerial expertise to its Indian operations, reducing execution risk and accelerating project timelines.

Impact on Malaysia’s Tech Sector
Industry analysts believe Tata’s entry could significantly boost Malaysia’s standing in the global semiconductor value chain. The acquisition is expected to:
• Strengthen Malaysia’s position in the market for chip packaging, assembly, and testing services.
• Attract further foreign investment and technology partnerships.
• Generate new jobs and upskilling opportunities for the local workforce.
Given the ongoing US-China trade tensions and shifting global supply chains, Malaysia’s role as a semiconductor hub is set to grow, with Tata’s investment adding further momentum.

Apple, India, and the Global Supply Chain
Tata Electronics’ rising profile is also tied to its growing role in Apple’s global supply chain. As Apple diversifies its manufacturing footprint away from China, India—powered by Tata’s capabilities—is emerging as a key alternative. Tata’s expertise in electronics manufacturing and assembly for Apple’s iPhone has already positioned it as a competitor to established giants like Foxconn.

Challenges and the Road Ahead
While the acquisition promises significant benefits, Tata Electronics will need to navigate:
• Regulatory approvals in both Malaysia and India.
• Integration of new teams and processes.
• Alignment with Tata’s long-term vision for semiconductor self-reliance.
The company’s leadership, deep pockets, and strategic clarity, however, provide a solid foundation for overcoming these hurdles.

Conclusion
Tata Electronics’ planned acquisition of a Malaysian chip fab or OSAT facility marks a bold step in its quest to become a global semiconductor powerhouse. By leveraging Malaysia’s strengths and channeling that expertise into its Indian ventures, Tata is positioning itself—and India—at the forefront of the next wave of semiconductor innovation. The move is set to reshape both the Indian and Malaysian tech landscapes, signaling a new era of cross-border collaboration in high-tech manufacturing.

 

 

The image added is for representation purposes only

Iron Path Capital Launches Materials Platform with Partnership

, , , , , , , 0 Comment
Read More
Trump Tariffs Push US Inflation to Eight-Month High
Economy, Markets - April 14, 2025

Trump Administration's Tariff Policy on Chinese Electronics

Trump Administration’s Tariff Policy on Chinese Electronics

 

The trade war between the United States and China has been one of the most significant geopolitical events of the 21st century. Initially, the U.S. under President Donald Trump’s administration imposed tariffs on a range of Chinese goods, and among the most affected industries has been the tech sector. Chinese-made electronics, including smartphones, laptops, and semiconductors, have been at the center of this conflict. Recently, the Trump administration has indicated that tariffs on Chinese electronics will likely increase or be reinstated, adding more uncertainty to the future of global trade in technology products.

 Trade War and the U.S.-China Tensions

The U.S.-China trade war began in 2018, marking a dramatic shift in trade relations between the two economic superpowers. President Trump’s administration initiated tariffs on Chinese goods as part of an effort to tackle what they perceived as unfair trade practices, intellectual property theft, and a growing trade deficit. This resulted in Chinese products, particularly in the tech industry, facing tariffs that ranged up to 25%. The immediate impact was felt by U.S. consumers, who saw the prices of everyday products rise, from smartphones to laptops.
However, not all products faced tariffs. Several Chinese electronics were temporarily exempt from these duties, including products from major companies like Apple, Dell, and HP. These exemptions were granted to reduce the economic burden on American consumers and businesses. Despite the temporary reprieve, recent comments from U.S. officials suggest that these exemptions could be reversed or that new tariffs may be introduced. This uncertainty continues to affect U.S. businesses and consumers.

National Security and Semiconductor Tariffs

One of the underlying reasons for the U.S. government’s aggressive tariff stance is national security concerns, particularly with respect to technology. Semiconductors, integral to virtually all modern electronics, have become a focal point in the trade war. The U.S. government has raised concerns about China’s growing capabilities in semiconductor production and its potential influence over technology companies worldwide.
Semiconductors are essential not just for consumer electronics but also for military and defense technologies. The U.S. has expressed concerns that China could leverage its control over the global semiconductor supply chain to gain access to sensitive information or disrupt crucial U.S. industries. By imposing tariffs on Chinese-made semiconductors, the Trump administration aims to mitigate these risks by incentivizing U.S. companies to develop their own semiconductor production capacity. However, this approach may have unintended consequences, such as increasing costs for U.S. manufacturers and consumers.

Impact on U.S. Tech Companies

The largest U.S.-based tech companies, such as Apple, Intel, and Nvidia, have faced significant challenges due to the tariffs on Chinese electronics. Apple, which assembles the majority of its products in China, has been particularly impacted. The company has managed to secure some temporary exemptions on certain items like the iPhone, but these exemptions may not last, creating uncertainty for the company and its consumers.
Apple is not alone in facing these challenges. Nvidia and Intel, which depend on Chinese-manufactured semiconductors for their products, are also vulnerable to tariff increases. The prospect of higher tariffs on Chinese-made electronics could increase the production cost of critical components for these companies, potentially leading to higher prices for consumers.
For these companies, a shift away from Chinese manufacturing is not a simple solution. While some U.S. firms have considered moving production to countries like Vietnam, India, or Mexico, this process is expensive and time-consuming. Moreover, these countries lack the infrastructure and labor force needed to match China’s production capabilities, meaning the cost of U.S. tech products could rise, further affecting American consumers.

The Impact on U.S. Consumers

The ramifications of these tariff policies are not just limited to tech companies. U.S. consumers will likely bear the brunt of higher costs if tariffs are reintroduced or increased. Many everyday electronics, such as smartphones, laptops, and gaming consoles, are manufactured in China. These products have been exempted from tariffs in the past, but that could change, leading to higher prices for consumers.
Higher tariffs on Chinese electronics could make it difficult for middle- and low-income families to afford the devices they rely on for work, school, and entertainment. If manufacturers are forced to raise prices due to tariffs, consumers may find themselves unable to access the latest technology. Additionally, if production shifts to other countries, the reduced scale of production could lead to shortages and delays in product availability.
The tech sector’s reliance on Chinese manufacturing is a double-edged sword. While U.S. companies benefit from affordable labor and efficient supply chains in China, the imposition of tariffs brings uncertainty that could ultimately disrupt these benefits. If U.S. companies are forced to find alternative manufacturing locations, the cost increases could hurt both consumers and businesses alike.

Global Trade and the Bigger Picture

Beyond the U.S. and China, the global tech industry is watching these developments with great interest. The uncertainty over tariff policies is creating a fragmented global market, with countries and companies scrambling to establish new supply chains or form trade agreements to reduce their reliance on China. Some countries, like India and Vietnam, are already positioning themselves as alternative hubs for tech manufacturing.
However, this transition is not without challenges. Shifting production away from China will require significant investment in infrastructure and labor, which may take years to achieve. Furthermore, the fragmented nature of the new supply chains could lead to inefficiencies and increased costs for companies that are trying to adapt quickly.
In the long run, the global economy may face more fragmentation as countries attempt to secure their own supply chains and reduce dependency on China. This could lead to a more complex and costly global trade environment, as nations establish new tariffs, trade agreements, and protectionist policies.

 

 

 

 

 

 

The image added is for representation purposes only

Fueling Friendship: India May Boost US Oil Buys

, , , , , , , , 0 Comment
Read More
Rapido vs Ola-Uber: How a Bike Taxi Startup Disrupted India’s Ride-Hailing Market
Equities, Markets - February 26, 2025

India- EU to work together on major industries

India- EU to work together on major industries

 

Overview

India and the EU will work together on semiconductors, telecoms, electric vehicles, and Al, with a focus on secure connectivity. With a budget of Euro 60 million, they seek to standardize EV charging standards and concentrate on battery recycling research. Commitments to market access will also be discussed at high-level discussions.

 

India-EU to cooperate on key industries

In their top-level meeting this week, India and the EU are likely to enhance cooperation in vital infrastructure and technology sectors, including telecom, semiconductors, electric vehicles (EVs), and artificial intelligence (AI). The establishment of “secure and trusted” communications networks will be among the priority areas, providing an alternative to China-led infrastructure projects.

 

To ensure efficiency and compatibility, both sides aim to harmonize EV charging infrastructure standards. A “joint research cooperation” program will also be established with the intention of recycling electric car batteries. The Horizon Europe program and India will have a joint budget of €60 million to fund these projects.

 

India is pushing the EU to commit to more stronger ties in the short term on market access. There have been disagreements, however, with the EU wanting this issue to be dealt with within the framework of the agreed free trade agreement and India demanding explicit mentions in the Trade and Technology Council statement.

 

Previous and Current Meets

On Thursday and Friday, EU President Ursula von der Leyen will visit India with the European Union College of Commissioners. Von der Leyen is visiting India for the third time having traveled to India in September 2023 to attend the G20 Leaders’ Summit and in April 2022 on a bilateral diplomatic visit. Von der Leyen and Prime Minister Narendra Modi have frequently met outside of global gatherings.

 

The EU College of Commissioners’ first-ever trip to India will be one of the first of its kind since the current European Commission’s mandate began in December 2024, following the June 2024 European legislative elections. Von der Leyen and Modi will preside over a plenary session of the College of Commissioners and the Indian government during the visit. While Von der Leyen and Modi will meet bilaterally, College members will also meet with their counterparts one-on-one.

 

The EU said last Friday that Vice-President Virkkunen, High Representative/Vice-President Kaja Kallas, and commissioners Maros Sefcovic and Ekaterina Zaharieva will represent the EU at the second meeting of the Trade and Technology Council, which will also take place during the heavy-duty visit. The EU’s second such bilateral forum is the council with India; the first was with the US and was established in 2021.

 

Conclusion

Through the council meeting, which will be led by the Ministry of Electronics and IT, India is likely to examine more cooperation and purchases with the EU in the semiconductor sector. India and the EU are cementing their ties in strategic sectors such as semiconductors, telecom, electric vehicles, and AI under a shared budget of €60 million. A focus on bringing EV charging systems into harmony as well as pioneering battery recycling technologies is among these. Although access to markets remains an area of negotiation, visits such as the one by EU President Ursula von der Leyen indicate deepening cooperation. The partnership is intended to enhance safe connectivity and offer an alternative to China-driven infrastructure projects, which reflect the strategic value of India-EU relations.

 

 

 

 

The image added is for representation purposes only

FMCG companies initiative to lower replenishment period in rural areas

 

 

 

 

 

, , , 0 Comment
Read More
Chinese Tech Giants Export India-Made Electronics to Global Markets
Equities, Markets - February 3, 2025

Budget 2025: Aims to expand domestic production in electronics industry with help of tariffs relief

Budget 2025: Aims to expand domestic production in electronics industry with help of tariffs relief

Budget 2025 emphasizes on boosting the progress of the electronics industry in India at global level. The Indian Ministry of Electronics and Information Technology is given more than Rs. 26,000 crore of fund allocation which is about 48 percent of growth in fund allocations. It aims to expand production of electronics and semiconductors in India. The government of India announced relief in import duties on some of the important components used for producing smart LED TVs, mobile phones, and other electronic gadgets. To become an international manufacturing hub in the world, India sets up the goal of growth of 500 billion dollars in Indian electronics manufacturing over the year 2030.

Performance of Electronics Industry in India
The Economic Survey of India for the financial year 2024-2025 states that the Indian electronics market shares in the international market is only 4 percent. The Indian electronics market majorly concentrates on assembly. It has made only small developments in component manufacturing and designing.

Despite this, the electronics industry in India was able to make significant progress in reduction of imports, and expansion of exports and domestic production in the country. In the previous 10 years, it was able to increase domestic production to about Rs. 9.52 lakh crore in the financial year 2024 which is an upward trend from the earlier domestic production of Rs. 1.90 lakh crore in the financial year 2015. Apart from this, India has successfully limited its reliance on other countries for smartphones by achieving around 99 percent of production at domestic level.

The main reasons for this strong growth is availability of skilled workforce, cost of labour is low, and also existence of a big market at domestic level. Along with this, the number of incentives, Production linked incentive (PLI), easing of business activities, development of infrastructure, and projects like Digital India and Make in India have helped in encouraging foreign investment and spurring growth in manufacturing at domestic level.

Measures taken by Budget 2025
The budget 2025 pointed out reforms in tariffs for some important electronics materials and components. Its aim is to make India’s electronics industry cost structure effective and efficient in the market. It will result in encouraging domestic production, expansion in investment and more use of materials and components which are produced in the Indian markets only.

Measures taken to promote domestic manufacturing of mobile phones
To encourage manufacturing of mobile phones in India, the actions taken by government of India is to eliminate earlier basic customs duty (BCD) which accounts to 2.5 percent on components used for making mobile phones such as wired headsets, fingerprint reader and scanners, printed circuit board assembly (PCBA), USB cables, camera modules, microphones, and connectors. Now these components are duty-free. It will lead to lower prices of the mobile phones supported by measures taken by the government to increase disposable income of the people.

Apart from this, open cells which are crucial for the production of TV panels like LCD and LED are also made duty-free by the Budget 2025. It is anticipated to give advantage to both manufacturers and consumers in the market due to contraction in the cost of production.

Measures taken to boost electric vehicles segment
For the production of electric vehicles and mobile phones, lithium-ion batteries are one of the crucial elements. To make lithium-ion batteries, materials such as scrap of lithium-ion batteries, cobalt power, and some 12 important minerals are used. Finance ministry of India made a public statement of making these materials duty-free. In the list of no duty, the number of capital goods for production of batteries of mobile phones and electric vehicles are added 28 and 35 capital goods more, respectively. It aims to promote manufacturing of batteries at domestic level in order to achieve the goal for becoming a global hub in areas of manufacturing of electric vehicles and mobile phones as well.

Steps taken to address issue of inverted tariff structure
India faced the issue of high custom duties on importing of components used for production which is higher than duties on finished commodities. The Finance ministry took measures to raise custom duty on components such as interactive flat panel displays to around 20 percent, which was earlier 10 percent.

Measures taken to promote semiconductors
The fund allocation in the budget 2025 for promoting display and semiconductors production in India is about Rs. 7,000 crore in the upcoming financial year compared to previous financial years’ allocation of Rs. 3,816.47 crore. It has also increased the allocation of funds twice which accounts to Rs. 2,499.96 crore. The budget has also raised funds to establish facilities for creation of silicon photonics, compound semiconductors, sensor fab, and other equiment related to semiconductors and to estabilish units like OSAT and ATMP. For this purpose, fund allocation was expanded to about 56 percent which accounts to Rs. 3,900 crore in the upcoming financial year compared to Rs. 2,500 crore in the financial year 2025. It will provide support to the semiconductor projects going on in Dholera by TATA and in Sanand by Micron.

Outlook of Electronics Industry in India
In present times, India is considered as the second biggest producer of mobile phones in the world. Companies like Samsung and Apple share in the mobile phones market in India is about 22 percent and 23 percent, respectively.

The programs like national manufacturing mission, contraction in various tariffs on crucial components used for electric vehicles and other electronics goods will lead to expansion in foreign investment, reasonable prices for consumers segment and expansion in domestic productivity of the country.

The image added is for representation purposes only

Renewable Energy Sector Awaits Budget 2025 for Key Support Measures

, , 0 Comment
Read More
Chinese Tech Giants Export India-Made Electronics to Global Markets
Business, Equities, Market News, Markets - September 17, 2024

Cabinet approves Kaynes' ₹3,300 crore chip plant in Gujarat

Cabinet approves Kaynes’ ₹3,300 crore chip plant in Gujarat

India is making awesome advance in its objective of getting to be a worldwide middle for semiconductors, competing with countries such as the US, Taiwan, and South Korea. The Union Cabinet gave its endorsement on Monday for Kayne’s Sem symbol to build up a unused office for testing and gathering semiconductors. With an assessed fetched of ₹3,300 crore, this extend is the 6th semiconductor company to be endorsed by the government beneath India’s yearning ₹76,000 crore motivating force conspire, which  is aiming to bolster the nation’s chip fabricating capabilities.

The as of late allowed office is expected to have a generation capacity of 60 lakh (6 million) chips per day and be arranged in Sanand, Gujarat. Various businesses, counting mechanical fabricating, car, electric vehicles, shopper hardware, broadcast communications, and versatile phones, will advantage from the utilize of these processors. The plant’s significance in assembly India’s rising require for semiconductors—essential parts of modern electronics—was accentuated by the Service of Gadgets and IT (MeitY).

It’s curiously to note that Telangana was the starting planning area for the Kayne’s Sem symbol plant. But the government proposed moving it to Gujarat, to Sanand, since the range is getting to be a center for semiconductor fabricating. This alter is in keeping with the government’s arrange to build up concentrated clusters of semiconductor fabricating offices, which can encourage industry collaboration and help to streamline operations.

Government Speculation and Back: The advancement of the office will get ₹1,300 crore from the Indian government, which will provide critical money related backing for the Kayne’s Sem symbol venture. This endowment is a component of a bigger program beneath the semiconductor fabricating motivating force program, to which nearly all of the $10 billion designated has been committed. The program has as of now drawn a number of high-profile ventures, such as a $11 billion manufacture plant by Tata Hardware in affiliation with Control chip of Taiwan and three particular chip get together plants by Tata Gather, Micron Innovation of the Joined together States, and CG Control of Murugappa Gather in affiliation with Renesas of Japan.

These progressions highlight India’s resolve to gotten to be a major member in the world semiconductor supply chain. The nation’s activities are particularly relevant in light of the progressing worldwide semiconductor deficiency, which has caused disturbances in a assortment of businesses over the board, counting buyer gadgets and car manufacture.

Future Activities and Arrangement Adjustments: A few semiconductor activities are in the works, in expansion to the Kayne’s Sem symbol office. For case, Zoho has plans for an get together unit for ₹4,000 crore, whereas Israel’s Tower Semiconductor has proposed a ₹78,000 crore creation plant. It is expected that these activities will reduce India’s reliance on imports and increment the nation’s capability for creating semiconductors.

Now that nearly all of the cash from the to begin with $10 billion motivating force program has been committed, the Indian government is getting prepared to dispatch the moment portion of its semiconductor arrange. The organization is supposedly considering of raising the program’s budget to $15 billion. The up and coming stage may bring around a number of advancements, such as giving monetary help for the crude materials and gasses required to make chips, which are fundamental for semiconductor operations to run efficiently.

On the other hand, the government is too considering bringing down the capital consumption appropriations for gathering and testing offices, now and then alluded to as OSAT (Outsourced Semiconductor Get together and Test) units or ATMP (Get together, Testing, Stamping, and Bundling). The current endowment for conventional bundling innovation is 50%. This might drop to 30% for conventional bundling and 40% for cutting-edge bundling arrangements beneath the unused arrange. The government’s choice to move its accentuation from gathering and testing to higher-value parcels of the semiconductor fabricating prepare, such creation, is reflected in this modification.

Regarding innovation exchange costs, the government’s position may moreover experience a significant move. Already, these costs might be secured by organizations that joined forces with others to utilize their chip fabricating advances. But beneath the unused arrange, businesses might have to pay for these costs on their claim. This activity may empower businesses to look for out organizations with more invaluable conditions or to contribute more in building inner capabilities.

Despite numerous deterrents, the government’s semiconductor activity is moving forward. For case, the ATMP plant of Micron Innovation in Sanand is purportedly 133 days behind plan. The primary cause of the delay is the failure to contract sufficient development specialists. These sorts of difficulties emphasize the operational challenges related with setting up large-scale fabricating offices in India, especially in a exceedingly particular industry such as semiconductors.

Furthermore, the government has been inquired to forgo the require for Tata Group’s accomplice, PSMC, to demonstrate that it can deliver 28-nanometer chips, a pivotal innovation for modern hardware. This ask is being considered by the government, but no choice has been made as of yet.

India is continuously figuring it out its yearnings to gotten to be a worldwide middle for semiconductors. Through critical monetary costs and calculated changes to its arrangements, the country is building up itself as a major drive in the world semiconductor showcase. But in arrange for these activities to be fruitful, they must overcome operational deterrents and make beyond any doubt that the motivating force programs are suitably tweaked to coordinate the changing requests of the segment. The up and coming a long time will be basic in assessing if India can satisfy its desire of getting to be a critical center for semiconductor make as it progresses with its semiconductor arrange.

The image added is for representation purposes only

Shriram Finance Targets $1.5 Billion in Overseas Funding

, , , 0 Comment
Read More