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Economic Times
a day ago
- Automotive
- Economic Times
Tata, Merck explore exclusive chemical deal for Dholera semiconductor facility
ETtech Tata Electronics is in discussions with German chemicals giant Merck for a potential exclusive long-term agreement, people aware of the developments told ET. The deal would see Merck become a primary supplier of specialty chemicals and materials essential for semiconductor manufacturing at Tata's upcoming Dholera facility. The Dholera fab, a 91,000 crore ($11 billion) project, is a joint venture with Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan. It's a cornerstone of India's ambitious push to establish a domestic semiconductor ecosystem. As construction progresses and the plant gears up for production by 2026, securing a steady and reliable supply of ultra-pure chemicals is paramount. A potential partnership with Merck will help seal this gap, analysts said. 'Tata Electronics is in active negotiations with Merck,' said one of the persons. ' Tata is evaluating the offer and is yet to sign on the dotted line but securing a chemicals partner is very much on their agenda. It will boil down to whether they agree to the exclusivity.' Semiconductor manufacturing uses more than 150 chemicals and over 30 gases and minerals in the production processes. Analysts said this exclusive partnership would provide Tata Electronics with supply chain stability, a critical factor in the volatile global semiconductor market and will help Merck make a foray into India's burgeoning semiconductor industry.'We have been monitoring semiconductor manufacturing developments in India for the past couple of years,' a Merck spokesperson said. 'We believe that India is becoming an increasingly important partner in the global semiconductor ecosystem. However, at this time it is too early to talk about concrete plans for India. We continue to closely follow opportunities that align with our strategic goals.'Tata Electronics didn't respond to queries. Merck is a global leader in specialty chemicals and serves as a crucial ancillary supplier for both existing and future chipmakers, said Neil Shah, vice president of research at Counterpoint Research. It provides a comprehensive portfolio of high-purity materials, including chemicals, gases, and metrology and inspection solutions. 'These offerings support chipmakers throughout various stages of manufacturing, from deposition and etching to final quality control,' he explained. 'An exclusive agreement between Merck and Tata Electronics would create significant strategic advantages for both companies. For Tata Electronics, an exclusive partnership would ensure a consistent, prioritized, and uninterrupted supply of critical materials, mitigating supply chain risks. Having a special price lock-in often comes with exclusivity.' It will allow Tata Electronics to leverage Merck's extensive supplier experience and R&D capabilities. It could thus lead to the development of robust processes, improved manufacturing yields and an accelerated timeline for their chip production.'For Merck, partnering with Tata Electronics, a key player in India's emerging semiconductor landscape, would be a major strategic win,' Shah said. 'As India becomes a more important market for chip manufacturing, this partnership would provide Merck with significant scale and a strong foothold. This position would enable Merck to expand its operational base in India, invest in local R&D, and potentially benefit from government incentives.'Merck will require a robust ecosystem to establish a successful chemicals plant in Gujarat. This includes not only reliable infrastructure--electricity, water, security, logistics--but also a well-developed upstream supply chain with local partners in raw materials to packaging. Shah said this 'holistic ecosystem' is essential to support and sustain Merck's was the first to report in February that Merck was looking to set up a specialty chemicals facility in India. In May, Union minister for electronics and information technology Ashwini Vaishnaw highlighted that Merck, among other companies, was gearing up for the growth of India's semiconductor industry. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Tariffs, tantrums, and tech: How Trump's trade drama is keeping Indian IT on tenterhooks Good, bad, ugly: How will higher ethanol in petrol play out for you? As big fat Indian wedding slims to budget, Manyavar loses lustre As 50% US tariff looms, 6 key steps that can safeguard Indian economy Stock Radar: JSPL forms Ascending Triangle pattern on weekly charts, could hit fresh 52-week high soon Nifty and business are different species: 5 small-cap stocks from different sectors with upside potential of up to 30% F&O Radar | Deploy Bear Put Spread in Nifty to play index's negative stance amid volatility Wealth creation: Look beyond the obvious in some things; 10 fertilizer sector companies worth watching
CNBC
30-07-2025
- Automotive
- CNBC
iPhone maker Foxconn joins $1 trillion AI data center market with new alliance
Foxconn on Wednesday said it is taking a stake in TECO Electric & Machinery Co., a move that will looks to supercharge its efforts to become a key player in building artificial intelligence data centers. The Taiwanese firm, formally known as Hon Hai, is looking to replicate the success it has had in consumer electronics in the world of AI. It's a play that could unlock Foxconn's access to a potential $1 trillion of spending by companies on data centers in the coming years, according to Counterpoint Research, and will also pit the Taiwanese giant against companies like ABB, Siemens and Mitsubishi Electric. Foxconn will take a 10% stake in TECO as the result of a share exchange. TECO started life as a engine maker for cars but has since extended into areas such as electric vehicles, energy storage and data center construction. Foxconn meanwhile, which assembles Apple's iPhone and is a key partner for Nvidia, manufactures server racks designed for AI workloads. The two companies are now teaming up to bring their expertise together to effectively create a one-stop-shop for anyone looking to set up an AI data center. "The strategic partnership extends the two companies' cooperation in the fields of low-carbon smart factories and energy services, toward being a one-stop solution for data centers going forward," TECO Chairman Morris Li said. The assembly of AI servers has become a key focus as Foxconn looks to diversify its revenue beyond the manufacturing of consumer electronics. AI server revenue is expected to have doubled in the second quarter of the year, Foxconn previously forecast. The company has also shown its willingness to expand into new areas including the assembly of electric vehicles and even manufacturing of semiconductors. "With the AI infrastructure boom, Hon Hai with [a] strategic alliance with TECO aims to extend and tightly integrate the server components and racks value chain from co-design, manufacturing to engineering and infrastructure construction services," Neil Shah, partner at Counterpoint Research, told CNBC. "Hon Hai aims to become a one-stop shop for all the datacenter needs." Tech giants from Microsoft to Google have already laid out plans to spend billions of dollars this year alone on data centers, which includes chips and servers — a market that Foxconn is targeting. Foxconn and TECO said they are targeting business in Taiwan and other parts of Asia, as well as the Middle East and the U.S. The two companies pointed to their footprint in the U.S. and said they plan to "expand American manufacturing and reshape the global supply chain." "The full data center solutions will give strong impetus to Foxconn's business as it takes to take a bigger slice of the overall data center CAPEX (capital expenditure) which includes servers to physical infrastructure," Counterpoint Research's Shah said.
India Today
22-07-2025
- Business
- India Today
Apple AirPods India production faces setback as China tightens rare earth material supply
Apple's plan to make AirPods in India has hit a speed bump, and it has to do with a key material that's mostly controlled by China. According to a report by Moneycontrol, the issue lies in the supply of dysprosium, a rare earth metal used in tiny magnets that help AirPods work the way they do. Foxconn, the company making these AirPods in India at its Telangana factory, has been struggling to get enough of this material. And it's not because of internal mismanagement. The problem is bigger, and it's political. China recently tightened export rules on dysprosium and other rare earth materials, and that's made things difficult for companies operating outside the making this situation more complicated is that it comes just after Foxconn moved more than 300 Chinese engineers out of its Indian facilities. So, the timing has made some people wonder whether this supply issue is a one-off hiccup or something more deliberate. Either way, it's got Foxconn concerned. As per Moneycontrol, the company has flagged the issue to the Telangana government and several central ministries, including the Ministry of Electronics and Information Technology (MeitY), the Department for Promotion of Industry and Internal Trade (DPIIT), and even the Prime Minister's Office (PMO). Everyone's aware now, but solving this might depend on how talks between India and China progress from that said, despite the trouble, Apple's AirPods production in India hasn't stopped entirely. The report further mentions that both Apple and Foxconn had foreseen some of these problems months in advance and managed to build a buffer. So, for now, they're somehow able to keep going. There's also word that Foxconn is working with the Indian and Chinese governments to get something called an End User Certificate, which is required by China before it can allow the export of such sensitive materials. Counterpoint Research's Neil Shah told Moneycontrol that the situation shows just how reliant the tech world still is on China for rare earth materials. And he's right. Dysprosium and other rare earth metals play a critical role in electronics. Without them, it's tough to maintain the same product of now, Foxconn's Indian unit contributes only a small share of Apple's global AirPods production. But it was seen as a key part of Apple's efforts to reduce its dependence on China. This supply roadblock gives an advantage to Apple's other partners, like Luxshare and Goertek, both of whom have production facilities in concern that this kind of disruption could hurt India's electronics manufacturing dreams in the long run, especially under the PLI scheme. If material shortages continue or worsen, it could affect pricing, timelines, and possibly even product features.- Ends
Time of India
21-07-2025
- Business
- Time of India
Smarter phones, steeper prices: AI could push flagship costs up 15% in India
The integration of AI into smartphones is poised to increase flagship handset prices in India by 10-15% due to rising chipset and memory costs. While AI features are expanding to mid-range devices, analysts caution that passing increased costs to consumers could negatively impact sales in a market already facing subdued demand. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: The integration of artificial intelligence (AI) could become a double-edged sword for smartphone brands, with industry executives and experts predicting a 10-15% increase in flagship handset prices in the coming quarters in India due to rising chipset and memory module costs, vital for unlocking full AI late, AI and generative AI (GenAI) capabilities have also trickled into mid-range smartphones , spurred by handset brands and chipset makers' initiatives. However, analysts cautioned that if the rising costs are passed on to mid-range model buyers, it could further dampen shipments in India this year."With the rising chipset costs and also corresponding memory chipset costs to bring the full AI capabilities in a smartphone, the overall cost to manufacture a flagship smartphone will rise," Neil Shah, vice president at Counterpoint Research , told ET."After a point, brands will not have enough room to adjust the BoM (bill-of-materials) costs to keep the pricing the same year after year and will have to raise prices for flagships by at least 10-15% as they move to chipsets with advanced nodes," Shah CH, senior director (product marketing) at Taiwanese chipmaker MediaTek , said the cost to offer premium performance in a smartphone is increasing, but added that consumers are willing to pay more to buy a premium their part, chipset makers and other vendors are attempting to control costs, he said. "MediaTek is part of a very complex supply chain, which also includes memory, display, and camera, and others. Every industry is doing its best to control the costs," he International Data Corporation (IDC) noted that currency fluctuations are also weighing on chipset Joshi, research manager, IDC, said passing on higher costs to consumers could further crimp smartphone sales in India, a market experiencing subdued demand. She added that since AI capabilities are already available in devices priced at over ₹30,000, a price hike could have an industry-wide effect.
Yahoo
02-07-2025
- Business
- Yahoo
Mango Introduces AI-powered Stylist for Personalization
GETTING PERSONAL: Mango, the Barcelona-based global fashion chain, is broadening its use of AI with the launch of 'Mango Stylist,' a virtual fashion assistant for shoppers. The tool, powered by generative artificial intelligence, is designed to make shopping the Mango website easier, faster and more personalized. The Mango Stylist is currently functioning in the brand's women's line, in 10 markets, mainly in Europe and the U.S. Other markets include Spain, Portugal, the U.K., France, Italy, Germany, Austria and Turkey. More from WWD SharkNinja's Neil Shah Talks New 'F1' Movie Sponsorship and APXGP Collaboration Radar Advances Its Inventory Tracking Technology With WhatsApp Partnership, L'Oréal Paris Wants People to Ask Beauty Genius - Not ChatGPT - for Beauty Help The retailer indicated that since 2018 Mango has developed more than 15 machine-learning platforms that apply AI in different areas including pricing, design and customer service. Among the most notable cited by the company are 'Lisa,' to address use cases of its employees and partners, and 'Inspire,' to help the design and product team create prints, fabrics and garments, as well as window dressing, architecture and interior design. Mango Stylist, the company indicated, uses algorithms 'to understand the context and personal tastes of each user, offering them product recommendations tailored to their preferences, as well as the possibility to explore the latest trends and discover Mango product combinations and complete looks through a chat on its e-commerce site and the brand's Instagram account.' The development of Mango Stylist was a result of the collaboration of different Mango teams including IT, data, digital product, styling, design, visual merchandising and customer service. The tool also integrates with Mango's after-sales virtual assistant, 'Iris,' which is already active in several markets. It's providing a single conversational point of contact for customers, which makes it possible to resolve queries at different stages of the shopping journey, from the start of a search for fashion to the after- purchase of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns
