VOL XXIV, ISSUE 04

28 February 2023

Top Stories

Policy Scan

Industry Scan

EMSIF

Business Opportunity

ELCINA Update

Upcoming Events

   INDUSTRY  SCAN                                                                           

General

TSMC To Build Second Foundry In Japan : Reports

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has reportedly started the construction of a second chip factory in southwestern Japan with an estimated investment of $7.4 billion (1 trillion yen). Japan�s Nikkan Kogyo newspaper reported the news first. At its last quarterly earnings call in January, TSMC CEO, CC Wei announced that the company was considering building a second plant in Japan. The company did not elaborate on the statement. TSMC is already constructing its first foundry in Japan in Kumamoto Prefecture, on Kyushu island. The foundry will begin the production of 12 and 16-nanometre semiconductors next year.

Source: https://www.electronicsb2b.com/, February 24, 2023

China�s Gongzhu Municipal Government Announces 200 Billion Yuan To Develop Semiconductor Industry

The municipal government of Gongzhu in China is said to have invested 200 billion yuan, which is around $29 billion to carry out various developments in the semiconductor industry. As per media reports, the authorities invested this amount as both the US and India are undertaking various projects and investing massively in semiconductor manufacturing. For the past few years, China also did the same to lead the global semiconductor sector. The South China Morning Post reported that Guangzhou's Industry Investment Fund of Funds (FoF) will chiefly focus on various semiconductor activities, sophisticated manufacturing and growth of renewable energy. In the meantime, the city�s FoF will carefully look out for financing for early-stage high-tech companies.

Source: https://circuitdigest.com/, February 22, 2023

Why Samsung Electronics Have Chosen India A Key Destination for Investments

As per reports, the South Korea based global electronics giant Samsung is investing massively in India and has also assured to manufacture its upcoming top-notch foldable smartphone in the country. Samsung wants to turn India into a chief manufacturing base of smartphones and other electronics. Earlier, the company has also produced a range of mid to high level phones in India because the country is now emerging into a hotspot for the global smartphone market. Currently, the nation is the world�s second largest market for smartphones and is continuously undertaking efforts to perk-up domestic electronics manufacturing to grab the spot of globe�s No. 1 smartphone market.

Source: https://circuitdigest.com/, February 24, 2023

Government to Unleash A New Program To Solidify India�s Semiconductor Manufacturing

In a further effort to strengthen the growth and revenue of chip manufacturing in the nation, Ashwini Vaishnaw, Union Minister for Electronics and Information Technology, stated that the government is going to unleash a very unique program soon that will make the journey of semiconductor in the country very solid in the coming ten years. In December 2021, the government launched the Semicon India Program, which is worth Rs 76,000 crore. The programme is supporting massively the development of display and semiconductor manufacturing in India. Moreover, the minister also added that various global firms have deeply shown interest to invest in India and many of them have already done the same. This is very imperative to meet the nation�s strategic requirements.

 Source: https://circuitdigest.com/, February 20, 2023

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Information Technology

Information Technology shares gain

Information Technology stocks were trading in the positive zone, with the S&P BSE IT Sector index rising 286.91 points or 0.97% at 29936.26 at 09:46 IST. Among the components of the S&P BSE IT Sector index, NELCO Ltd (up 4.3%), DigiSpice Technologies Ltd (up 4.29%),Cybertech Systems & Software Ltd (up 3.79%),Cressanda Solutions Ltd (up 3.24%),KPIT Technologies Ltd (up 3.17%), were the top gainers. Among the other gainers were Rategain Travel Technologies Ltd (up 3.1%), Mastek Ltd (up 3.02%), Vakrangee Ltd (up 2.53%), Subex Ltd (up 2.28%), and Datamatics Global Services Ltd (up 2.15%). 

Source: https://www.business-standard.com/, February 28, 2023 

Govt to set up centre of excellence for cyber security in Bhubaneswar

The state government has decided to set up a centre of excellence (COE) for cyber security to help police personnel effectively deal with the challenges posed by cyber crooks. The state-owned Odisha Computer Application Centre (OCAC) is planning to set up the centre of excellence in Bhubaneswar to cater to the needs of the state police. The proposed COE will have cyber intelligence, investigation and forensic units along with tools, technology, process, and trained manpower to combat the cyber criminals. One of the key aspects of this project is to have an effective cyber security workforce to help the police personnel in investigating cyber crimes. 

Source: https://timesofindia.indiatimes.com/, February 28, 2023 

India tops list of global internet shut-offs: Report

India enforced as many as 84 internet shutdowns last year and was on top of the list of nations that ordered internet shutdowns for the fifth year in a row, as per a report by Access Now and the KeepItOn coalition. The shutdowns were ordered on various accounts including protests, conflict, school exams, and elections. In 2022, the Internet was shut down 49 times in Jammu and Kashmir, the highest of any state in the country, per the report. This included a string of 16 back-to-back orders for three-day-long shutdowns in January and February 2022 in the region. Authorities in Rajasthan imposed shutdowns on 12 different occasions followed by West Bengal, which ordered shutdowns seven times. 

Source: https://indianexpress.com/, February 28, 2023

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Telecom

DoT nod soon for Vodafone Idea's payment plan

The Department of Telecommunications (DoT) is set to approve a payment plan proposed by cash-strapped Vodafone Idea (Vi) to clear its third-quarter dues � on licence fee and spectrum usage charges � in a phased manner with interest. The company had submitted the plan after the government asked it to provide a tentative date for making the payment as the telco is believed to have paid just around 10% of its statutory dues for the period.

Source: By Kiran Rathee, https://telecom.economictimes.indiatimes.com/, February 27, 2023

Let industry handle USO fund: GSMA�s Mats Granryd

London-based GSM Association (GSMA) believes that satellite players have been over promising and under-delivering, and they can co-exist with terrestrial network operators. The telco group that represents more than 700 telecom carriers worldwide said thindustry is mature enough to handle the Universal Service Obligation (USO) fund itself. In an interaction with ETTelecom�sMuntazir Abbas, GSMA director general Mats Granrydspeaks on a wide range of topics such as India�s recent policy reforms, 5G deployments, captive 5G, network, floor pricing, India�s 6G ambition, 5G network blackouts at airports. Edited excerpts.

Source: By Muntazir Abbas, https://telecom.economictimes.indiatimes.com/, February 27, 2023

Nokia launches new AirScale massive MIMO 5G radios

Finnish telecom gear maker Nokia has launched the new AirScale massive MIMO 5G radios � Habrok � for telecom operators and enterprise networks at the Mobile World Congress 2023. Habrok radios are powered by Nokia�s latest generation of ReefShark System-on-Chip (SoC) and are available in both 32 TRX (Habrok 32) and 64 TRX (Habrok 64) versions, covering all massive MIMO use cases and deployment scenarios, according to a statement by Nokia. The latest massive MIMO radio products will become available in late 2023.

Source: https://telecom.economictimes.indiatimes.com/, February 27, 2023

Government to ease compliance burden in telecom sector

The Department of Telecommunications (DoT) is working on easing the compliance burden by simplifying the existing license regime as a part of procedural reform for mid-to-small sized companies entering into the telecom sector. The department is currently reviewing legalities for the process.

Source: By MuntazirAbbas&Mansi Taneja, https://telecom.economictimes.indiatimes.com/, February 16, 2023

Huawei dominates MWC mobile tech fair despite US sanctions

Attending are 150 Chinese companies out of 2,000 exhibitors and sponsors, with Huawei Technologies Ltd. having the biggest presence. The smartphone and network equipment maker is expanding its footprint by 50 per cent from last year and taking up almost an entire vast exhibition hall at Barcelona's Fira convention centre, organisers said.

Source: https://telecom.economictimes.indiatimes.com/, February 27, 2023

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EV�s & Auto Electronics

How Tamil Nadu�s New EV Policy WIll Perk-up The Sector�s Growth in India

Tamil Nadu�s new electric vehicle policy 2023 was unleashed a day back by the state government, which will offer capital subsidy for both private and public charging stations and also battery swapping stations. Apart from that, the policy also showcases special incentives for re-manufacture and retrofitting. Also, a roadmap will be prepared by the government to electrify all the institutional and public fleets in various phases running in the state. The new policy asserted that the ecosystem of the electric vehicle industry is altering very swiftly and hence, it needs revisions after a certain time and also seamless policy approach.

Source: https://circuitdigest.com/, February 16, 2023

EVs are billed as the future. But a potential skills gap is sparking concerns about cost and safety

From seatbelts to airbags and radios to parking sensors, today�s cars are packed with innovations that have transformed the vehicles we drive. Thanks to growing concerns about emissions from road-based transportation, several big economies are gearing up for another huge change: the mass rollout of electric vehicles. The U.K., for instance, wants to stop the sale of new diesel and gasoline cars and vans by 2030 and will require, from 2035, all new cars and vans to have zero tailpipe emissions. The European Union, which the U.K. left on Jan. 31, 2020, is pursuing similar targets. And over in the U.S., California � America�s most populous state � is banning the sale of new gasoline-powered vehicles by 2035.

Source: By AnmarFrangoul, https://www.cnbc.com/, February 27, 2023

Japan�s Nissan accelerates shift to electric vehicles

Nissan is speeding up its shift toward electric vehicles, especially in Europe where emissions regulations are most stringent, the company said Monday. Nissan Motor Co. said in a statement that it will make practically all its offerings in Europe electric or series-hybrids by fiscal 2026, at 98%. That�s up from the previous target of 75%. In Japan, the company aims to make 58% of its model offerings, up from an earlier target of 55%. Hybrids have both a gasoline engine and electric motor, but a series hybrid uses the motor to power the vehicle�s wheels, or powertrain. The engine powers a generator for the motor.

Source: By YURI KAGEYAMA, https://apnews.com/, February 27, 2023

India Now Stands The Fourth Largest Funded Market in Electric Vehicles; Claims Study

Media reports now claim that India is now the third largest market for electric vehicles in terms of volume of companies. In this sector, the country is now just lagging behind China and the US, but it is also the fourth largest market in terms of funds and investments. According to Neha Singh, co-founder of Tracxn, a start-up data platform, growth booster initiatives by the government such as the FAME II scheme have increased the momentum of revenue of this industry. The scheme has rapidly electrified public transportation, as well as other important issues such as increasing prices of oil and increasing environmental concerns. lso, the Union Budget 2023-24 has unleashed new rules for this industry that includes exemptions on customs duty on capital goods and machineries for the manufacture of EV batteries.  

Source: https://circuitdigest.com/, February 11, 2023

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Defence & Solar

�Smaller, better and cheaper�: The rise of portable drone interceptors 

Manufacturers of counter-drone weaponry say they are increasingly miniaturizing and simplifying their solutions to meet rising demand for man-portable weapons, as recent conflicts have accentuated the importance of mobile capabilities. Man-portable, counter-unmanned aerial systems (C-UAS) have been around for some time, however, with the growing threat of weaponized commercial drones in recent years, their proliferation has accelerated. In a 2019 C-UAS database report compiled by the Center for the Study of the Drone at Bard College, out of 537 market products analyzed, 111 (21%) were hand-held solutions, offered by over 29 different countries. 

Source: By Elisabeth Gosselin-Malo, https://www.defensenews.com/, February 20, 2023

Russia, Ukraine showcase loitering munitions at IDEX arms fair

In a rare setting, for the first time since Russia�s invasion of Ukraine in February 2022, both Russian and Ukrainian companies are exhibiting their weapons in close proximity to each other at the IDEX and NAVDEX exhibitions. Russia, whose arms industry is a key target of Western sanctions, had a larger presence than anticipated at the 2023 edition, not even listed as an official exhibiting country on the conference website. The companies� footprint here shows how Russian firms and government officials seek to intensify ties with countries outside of Europe, where the regime of President Vladimir Putin stands isolated over its brutal assault of Ukraine. 

Source: https://www.defensenews.com/, February 20, 2023 

IAF unveils new doctrine to enhance national defence

The Indian Air Force (IAF) has released its latest doctrine, which marks a significant change in its priorities and capabilities. The doctrine, a founding statement for the IAF, covers issues related to the use of air power and the functioning of the force. The new version places a strong emphasis on the importance of aerospace power to India�s defense, global reach, and future readiness. The doctrine takes into account advancements in technology and the changing environment of international security. However, some critics argue that the IAF�s focus on indigenization and technology may not be enough to handle the challenges it faces. Nevertheless, the IAF�s new doctrine is expected to strengthen its position as a global air and space power. 

Source: https://www.indiandefensenews.in/, February 28, 2023 

Isro successfully conducts flight acceptance hot test of ce-20 cryogenic engine for chandrayaan-3 mission

The flight acceptance hot test of the CE-20 cryogenic engine that will power the Cryogenic Upper Stage of the LVM3 launch vehicle for the Chandrayaan-3 Mission was successfully conducted on February 24, 2023 at the Liquid Propulsion Systems Centre, Mahendragiri in Tamil Nadu. The hot test was carried out for a planned duration of 25 seconds at the High Altitude Test Facility. All the propulsion parameters during the test were found satisfactory and closely matched with predictions. The cryogenic engine will be further integrated with the propellant tanks, stage structures and associated fluid lines to realise the fully integrated flight cryogenic stage. 

Source: https://www.indiandefensenews.in/, February 28, 2023 

Here is how india developed technologies to bypass sanctions against its missile program 

After successfully testing the Prithvi missile in 1988, and the Agni missile in 1989, India faced the sanctions and restrictions of the Missile Technology Control Regime (MTCR). To overcome thIs, the DRDO�s Integrated Guided Missile Development Program (IGMDP) team brought together several DRDO laboratories and various industrial players to develop, manufacture and improve these sub-systems indigenously. While India is now looking to sell missiles to the world, just four decades ago the country had been facing sanctions and restrictions from international bodies to develop its own missile program. After independence, India lacked the indigenous capabilities to design or manufacture its own missile systems or weapons and relied on foreign weapon exports.  

Source: https://www.indiandefensenews.in/, February 28, 2023

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Consumer Electronics

India to cross 1 lakh crore mobile phone exports in 2023: MoS Rajeev Chandrasekhar

The year 2023 will be milestone for India as we will cross Rs 1 lakh crore in mobile phone exports this year, said minister of state for electronics and IT Rajeev Chandrasekhar said on Friday. Speaking on the sidelines of the SemiconIndia Future Design Conference, the minister told PTI that the government expects to approve up to two applications this year to start building electronic chip manufacturing plants in the country. As per reports, the government has received proposals from five companies for setting up electronic chip and display manufacturing plants with investments of Rs 1.53 lakh crore a year ago.

Source: https://knnindia.co.in/, February 25, 2023

Xiaomi's India biz turns around, revenue grows over 9% in FY22

Xiaomi turned around its India business in FY22 with the company's turnover growing more than 9% to Rs 39,099 crore, topping the pre-pandemic revenue achieved in FY20, as per regulatory disclosures made to the Registrar of Companies. According to analysts, the financial performance reveals that he anti-China rhetoric in social media and the strict actions by Indian authorities had no impact on the business of the Chinese company in India. 

Source: By Writankar Mukherjee, ET, February 25, 2023 

LG launches 39thBrand Shop in Mumbai Thane Region

Continuing with its commitment to re-define retailing standards in the Indian consumer durable industry, LG Electronics has opened its 39th Brand shop at Kandivali, Mumbai with its Partner Shreeji Electronics, lead by Shri. Rajesh HimatlalDavda. Designed to meet the current challenging demands of the retail environment in the country, this new LG BEST SHOP M/S Shreeji Electronics, at Kandivali West was inaugurated by Mr. Surinder Sachdeva, Sales Head West Region and Regional Business Head, Mr. Arif Parmar, LG Electronics India Pvt Ltd. The occasion was also graced by Singer & Performer Prajakta Shukre who hummed few Bollywood hits. Paving the way to effectively seize the growing organized retail market and redefine standards for lifestyle retailing, LG is setting up a chain of exclusive premium showrooms all across the country and has chalked out a rollout plan to implement the LG Best Shop experience across various cities. 

Source: https://www.apnnews.com/, February 24, 2023 

2022 Proves Good For Indian TWS Market Shipments

As per the latest report by Counterpoint�s IoT service, India�s TWS market shipments registered 85% YoY growth in 2022. Notably, domestic manufacturing is on the rise as it grabbed about 30% of shipment share in 2022, compared to just 2% in 2021. Counterpoint counts rise in local manufacturing, timely sales events, frequent affordable offerings, and entry of new players as the major driving factors of increased shipments. Unprecedentedly, Indian brands held all the top five spots in the India TWS market. This caused Indian brands to reach their highest-ever share of 80% in 2022. The report added that the average selling price dropped by 20% YoY last year. 

Source: https://www.electronicsb2b.com/, February 24, 2023

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EMSIF

(Special section of the MSME related news under ELCINA Micro & Small Industry Forum)

PMEGP: KVIC releases Rs 100 crore in subsidy to over 3,000 beneficiaries 

Khadi and Village Industries Commission (KVIC) Chairman Manoj Kumar on Sunday released the margin money subsidy of Rs 100.63 crores to 3,083 beneficiaries under the Prime Minister�s Employment Generation Programme (PMEGP) scheme with the sanctioned loan of Rs 296.19 crore for PMEGP projects (new enterprises). This will create new employment opportunities for around 25,000 people, the MSME ministry said in a statement. The subsidy was released during an event organised in the Karauli district of Rajasthan where Kumar also distributed 300 bee boxes including bee colony to beekeepers.  

Source: https://www.financialexpress.com/, February 27, 2023

Account aggregators can rescue MSMEs 

The Micro, Small, and Medium Enterprise (MSME) sector is a critical component for the development of India�s economy, contributing to around 30 per cent of India�s Gross Domestic Product (GDP) and generating employment opportunities for about 11.1 crore people. However, the government figures suggest that the formal sources of credit have reached only 39 per cent of the MSMEs. This gap may be caused not only by a lack of credit supply, but also by the absence of relevant and easily accessible low-cost, low-ticket-size, collateral-free sources of credit through formal banking channels. With the Account Aggregator (AA) Ecosystem serving many relevant use cases for MSMEs� financial inclusion, this article attempts to to simplify the use case of AAs for MSMEs. 

Source: By Manvi Khanna &Aakanksha Mehta, https://www.deccanherald.com/, February 27, 2023 

Union Budget 2023-2024: The Stage is Set for MSMEs in India to Rise Up 

That said, the Union Budget 2023-2024 has presented a comprehensive package of policy announcements that are aimed at reviving the distressed MSMEs in the country. The Honourable Finance Minister, Nirmala Sitaraman has presented a finely-balanced budget that focuses on CapEx spending as the engine of growth and also adequately pays heed to fiscal consolidation. The increased investment in the MSME sector is seen as a testimony of the commitment to building a stronger business ecosystem in the country. This, in turn, will have a domino effect on employment and the Gross Domestic Product (GDP) per capita of the country. Though MSMEs have huge potential to become the growth accelerators for India, there is still a long way to go before this turns into a reality. 

Source: Nitin Sharma, The author is CPO- CredAble& MD � UpScale by CredAble, https://timesofindia.indiatimes.com/, February 26, 2023 

State proposed MSME sin place of shut central PSUs 

The state government is keen on setting up industrial parks or MSME units on lands occu- pied by shut central PSUs. The state industries depart- ment has asked the district magistrates to identify non- agricultural lands along the industrial corridor. The proposed corridor will cover seven districts, namely, East and West Burd- wan, Purulia, Bankura, West Midnapore, Howrah and Hooghly. The state government has proposed to set up an indus- trial park on 166 acres of land of Durgapur Projects. Again it has got 191.06 acres of land of Dhakesh- wari Cotton Mills. The land has been pro- cured by the West Bengal Industrial Development Cor- poration( WBIDC) where an industrial park will come up. 

Source: https://www.thestatesman.com/, February 25, 2023

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ELCINA EVENTS , ACTIVITIES & SERVICES 

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ELCINA Publications

https://elcina.com/roadmap-for-developing-pcb-eco-system-in-india	Roadmap For Developing PCB Eco-System in India Key Findings Indian PCB market and industry size in terms of domestic production, exports, and imports Growth drivers and challenges (needs & gaps) in the Indian PCB industry Growth potential of PCB manufacturing in India and identify enablers for creating & strengthening the domestic value chain Key inputs required viz. investments, technology, and infra eco-system Details of key PCB value chain players � global and domestic, who can be invited to invest to establish a strong PCB industry
https://elcina.com/ems-task-force-report-on-market-industry-analysis-of-ems-sector-in-india	EMS Task Force Report Key Findings Currently EMS Industry (Contract Manufacturing Services) are valued 832 Bn $ and are projected to grow 1055 Bn by 2025. Domestic electronics manufacturing is estimated at USD 75 Bn of which 39 Bn constitutes EMS value. This is divided into 23.5 Bn domestic Mfg. and USD 15.5 Bn PCBS/Sub-Assembly imports. Further USD 53.5 Bn is finished Electronic Goods imports of which USD 17 Bn is EMS value. Thus total EMS opportunity loss is US$ 32.5 Bn (15.5 +17). The report estimates that EMS production can grow realistically from USD 23.5 Bn today to USD 152 Bn by 2025 at CAGR of 45%. This will meet 75% of the countries EMS requirement of US$ 203 Bn by 2025 against a total estimated market of 400 Bn.
https://elcina.com/elcina-task-force-report-on-electronic-components	ELCINA Task Force Report on Electronic Components Key Findings Current status of component manufacturing in India � Areas of competence vs Gaps and inadequacies Components which urgently require investments and growth in domestic manufacturing Emerging technology and new components for upcoming opportunities Constraints and bottlenecks to be addressed Overcoming Policy constraints, WTO (ITA-1) deadlock and Zero Duty issue Strategy for overcoming these constraints Eco-System requirements- Role of Central and State Governments
https://elcina.com/elcina-directory-of-indian-electronics-industry	ELCINA Directory of Indian Electronics Industry 2022-23 Description ELCINA Directory of Indian Electronics Industry � includes the updates on Indian Electronics Industry and a host of additional improved features covering business environment, statistical industry scan, company databases plus various projections. This handy compendium with its easy-to-read format attracts the attention of a growing number of users (within India and abroad) Apart from electronics industry, the users of this Directory range from financial institutions, commercial banks, FIIs, Consultancy organizations as well as industry promotion institutes across the world�.

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