IT {hardware} producers have urged the federal government to drop the contemporary funding clause proposed within the revised production-linked incentive (PLI) scheme being ready for the trade. Below the revised scheme, the federal government has saved the situations to avail of the scheme’s advantages the identical as earlier than.
This and extra in at present’s version of ETtech High 5.
Additionally on this letter:
■ Apple provider Foxconn wins AirPod order, plans $200 million manufacturing facility in India: report
■ Rural web utilization pips city India: report
■ Athera Enterprise Companions appoints Rajiv Mehta as basic companion
IT {hardware} corporations flag PLI’s funding clause amid unused capability
IT {hardware} producers akin to Foxconn, HP and Dixon Applied sciences have urged the federal government to drop the contemporary funding clause proposed within the revised production-linked incentive (PLI) scheme being ready for the trade.
Cause: The producers reasoned that almost all producers have slack capacities that first must be used up earlier than committing to enlargement at a time when world PC and pill gross sales have been steadily declining. At a gathering earlier this month, officers of the ministry of electronics and data expertise (MeitY) had insisted on together with the funding clause, to maintain it according to PLI schemes in different classes. They sought assurances from the trade to fulfill the proposed targets.
Quote, unquote: “We’ve requested the federal government to delink investments from incentives,” stated an trade govt. “Nevertheless, all different PLI schemes have that element linked to advantages, so the federal government is discovering it tough to create a separate mechanism for this explicit scheme,” stated the manager.
What is the subject? The federal government had proposed to extend the IT {hardware} PLI scheme’s outlay by practically 3 times to Rs 20,000 crore and double the motivation charge to 4-5.75% over six years. Nevertheless, even beneath the revised scheme, it has saved the situations to avail of the scheme’s advantages the identical as earlier than. Amongst them is the funding criterion. This requires funding of Rs 500 crore from world companies and Rs 50 crore from native gamers over six years.
ETtech Explainer: is TikTok watching a possible ban within the US?
The US authorities has requested TikTok-parent Bytedance to divest its shares within the well-liked brief video-app platform failing which it could be watching a ban within the nation with over 100 million customers. The state of affairs is comparable in lots of different international locations, which have banned the app or elevated scrutiny of its functioning.
Why the ire? Governments worry the info collected by the platform will likely be handed on to Chinese language authorities since Bytedance, a Chinese language web firm, owns TikTok. In December final 12 months, FBI director Christopher Wray warned that TikTok’s privateness and information assortment insurance policies may permit for the seize of delicate, personally identifiable data
Hostility with the US: TikTok is embroiled in a tough battle with the US authorities and totally different US regulators, with most of them strongly suggesting a blanket ban on the app. A dozen senators launched a White Home-backed Invoice to provide the Joe Biden administration new powers to ban TikTok and different foreign-based applied sciences in the event that they pose nationwide safety threats.
Approach ahead: Dialogue with governments and regulators appears to be the easiest way ahead for TikTok. However, that will likely be an uphill battle contemplating how most Western international locations are skeptical about China, with the US in a full-blown commerce warfare with them as effectively.
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Apple provider Foxconn wins AirPod order, plans $200 million manufacturing facility in India: report
Taiwanese contract producer Foxconn has gained an order to make AirPods for Apple and plans to construct a manufacturing facility in India to provide the wi-fi earphones, Reuters reported on Thursday. The deal will see Foxconn grow to be an AirPod provider for the primary time and underlines efforts by a key Apple provider to additional diversify manufacturing away from China. AirPods are at the moment made by a spread of Chinese language suppliers.
$200 million manufacturing facility in India: The report stated Foxconn will make investments greater than $200 million within the new India AirPod plant in Telangana. It wasn’t instantly clear how a lot the AirPod order could be value. A subsidiary, Foxconn Interconnect Expertise Ltd, plans to begin development of a producing facility within the second half of this 12 months and start manufacturing by the tip of 2024, the report added.
Foxconn eyes extra orders from Apple: Foxconn officers had debated internally for months about whether or not to assemble AirPods because of comparatively decrease revenue margins on making the gadget, however finally opted to go forward with the deal to “reinforce engagement” with Apple. Foxconn vies with Taiwanese rivals akin to Wistron Corp and Pegatron Corp to win extra orders from Apple
Foxconn talks of solo chip run in India: Foxconn is in discussions with the Indian authorities to arrange a semiconductor plant by itself, and with none authorities incentives, a senior official stated.
Athera Enterprise Companions appoints Rajiv Mehta as basic companion
Early-stage VC agency Athera Enterprise Companions, previously Inventus India, which has backed startups akin to HealthifyMe, PolicyBazaar, Euler, amongst others, has appointed Rajiv Mehta as its basic companion. Mehta will be a part of the founding workforce of the Bengaluru-based agency comprising Samir Kumar, Parag Dhol and Rutvik Doshi.
Fund closure: The early-stage VC agency, which made 35 investments aggregating to Rs 863 crore in Indian startups by means of its first three funds, goals to make the primary shut of Rs 300 crore of its fourth fund within the second half of 2023. The fourth fund of Rs 900 crore was launched final 12 months.
Quote, Unquote: “What we noticed within the early stage of e-commerce was pure commerce, which was adopted by meals supply that got here in the previous few years. Now what we see is that something to do with credit score or finance. A number of gamers have entered this area. Our thesis is that what occurred with e-commerce will now occur in well being. Well being will start to come back as a service,” Mehta advised us in regards to the shopper web section.
Earlier fund: By way of its third fund, which was Rs 369 crore in corpus and was launched in 2019, Athera invested throughout 14 new startups together with space-tech agency Pixxel; interactive toys firm Playshifu and automotive firm Euler Motors. By comparability, Athera plans to spend money on round 18 startups by means of the Fund-IV even with a corpus that’s greater than double of its final fund
Stripe raises $6.5 billion: Digital funds processor Stripe, which raised $6.5 billion from enterprise capital giants Andreessen Horowitz, Peter Thiel’s Founders Fund, Normal Catalyst and others, stated on Wednesday it was valued at $50 billion in its newest funding spherical, with its valuation practically halved from its earlier fundraising, amid a tricky financial setting.
Aerem raises $5 million: Solartech platform Aerem stated it has raised $5 million (Rs 41 crores) in funding led by climate-tech investor Avaana Capital. The Mumbai-headquartered firm stated it can make the most of these funds to develop its suite of modern solartech and financing options and construct an ecosystem that brings collectively all of the stakeholders.
Tweet of the day
Infographic Perception | Rural India had 44% extra web customers in comparison with city markets: Nielsen report
Rural India had greater than 42.5 crore web customers, 44% greater than city India, which had 29.5 crore folks utilizing the web recurrently, in accordance with a report by Nielsen. The report titled ‘India Web Report 2023’, additionally talked about that just about half of rural India is on the web, with a powerful progress of 30%, and extra headroom for progress sooner or later.
The report put the entire variety of web customers in India by the tip of December 2022 at 72 crore. The hole between every day customers in city versus rural areas additionally diminished in 2022.
Additionally learn | Report says over 700 million energetic web customers in India as of December 2022
Immediately’s ETtech High 5 publication was curated by Gaurab Dasgupta and Erick Massey in New Delhi. Graphics and illustrations by Rahul Awasthi.
