Contract electronics maker Inventec Corp (英業達) has set up a plant in India, but has not started operations due to a taxation issue involving one of its major clients and the local government.
The company, whose clients include Apple Inc and Xiaomi Corp (小米), yesterday said it has decided to leave the plant idle until the issue is resolved and it is seeking other clients to place orders.
“We can not start operating the plant while a major client has taxation issues with the local government,” an Inventec official, who declined to be named, told the Taipei Times.
The official said the about US$10 million plant was set up in India’s Chennai in Tamil Nadu state in the second quarter of last year to help one of Inventec’s US notebook computer clients meet Indian Prime Minister Narendra Modi’s “Make in India” policy.
The company initially installed one production line for the notebook client, the official said.
However, at the end of last year the US client decided to suspend the manufacture of products at the plant due to the Indian state government’s revised tax policy, the official said.
Currently, there are not sufficient orders from other clients to support the full operation of the plant, as most clients are cautious about the unpredictable global economy, the official said.
The official said that the company does not have plans to give up the Chennai plant, rather it is seeking other clients to jointly explore business opportunities, she said.
An industry source, who refused to be named, as the company is in the final stage of deciding whether to set up a manufacturing plant in India, said complicated tax policies in different Indian states is one of the key issues stalling its decision.
“A main issue in India is that each state has different tariff policies and regulations. It is complicated if you want to manufacture products in this state and sell them in other states,” the source said by telephone.
Taiwan’s Department of Investment Services said tax policies, infrastructure and labor efficiency are the three main reasons Taiwanese manufacturers entered the Indian market.
The cultural and language differences and the instability of electricity supply raise the bar for Taiwanese manufacturers to invest in India, department Director-General Vivian Lien (連玉蘋) said.
“Although the investment environment in India is improving, it is still unfriendly to investors, compared with other Southeast Asian countries,” Lien said by telephone.
TECH SECURITY: The deal assures that ‘some of the most sought-after technology on the planet’ returns to the US, US Secretary of Commerce Gina Raimondo said The administration of US President Joe Biden finalized its CHIPS Act incentive awards for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), marking a major milestone for a program meant to bring semiconductor production back to US soil. TSMC would get US$6.6 billion in grants as part of the contract, the US Department of Commerce said in a statement yesterday. Though the amount was disclosed earlier this year as part of a preliminary agreement, the deal is now legally binding — making it the first major CHIPS Act award to reach this stage. The chipmaker, which is also taking up to US$5 billion
TRADE WAR: Tariffs should also apply to any goods that pass through the new Beijing-funded port in Chancay, Peru, an adviser to US president-elect Donald Trump said A veteran adviser to US president-elect Donald Trump is proposing that the 60 percent tariffs that Trump vowed to impose on Chinese goods also apply to goods from any country that pass through a new port that Beijing has built in Peru. The duties should apply to goods from China or countries in South America that pass through the new deep-water port Chancay, a town 60km north of Lima, said Mauricio Claver-Carone, an adviser to the Trump transition team who served as senior director for the western hemisphere on the White House National Security Council in his first administration. “Any product going
CHANGING JAPAN: Nvidia-powered AI services over cellular networks ‘will result in an artificial intelligence grid that runs across Japan,’ Nvidia’s Jensen Huang said Softbank Group Corp would be the first to build a supercomputer with chips using Nvidia Corp’s new Blackwell design, a demonstration of the Japanese company’s ambitions to catch up on artificial intelligence (AI). The group’s telecom unit, Softbank Corp, plans to build Japan’s most powerful AI supercomputer to support local services, it said. That computer would be based on Nvidia’s DGX B200 product, which combines computer processors with so-called AI accelerator chips. A follow-up effort will feature Grace Blackwell, a more advanced version, the company said. The announcement indicates that Softbank Group, which until early 2019 owned 4.9 percent of Nvidia, has secured a
CARBON REDUCTION: ‘As a global leader in semiconductor manufacturing, we recognize our mission in environmental protection,’ TSMC executive Y.P. Chyn said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday launched its first zero-waste center in Taichung to repurpose major manufacturing waste, which translates into savings of NT$1.5 billion (US$46 million) in environmental costs a year. The environmental cost savings include a carbon reduction benefit of 40,000 tonnes, equivalent to the carbon offset of over 110 Daan Forest Parks, the chipmaker said. The Taichung Zero Waste Manufacturing Center is part of the chipmaker’s greater efforts to reach its net zero emissions goal in 2050, aligning with the UN’s 12th Sustainable Development Goal. The center could reduce TSMC’s outsourced waste processing
RSS