Business News This Week #22 | NFWorld Latest News
Micron Semiconductor plant in India | Swiss Bank Annual Data | Tata Power: Randstad Report | UK Public Debts | Hyundai EV Investment – Business News This Week
Check out the Top 5 Prime Business News this week in the NF World Latest News section below. This section covers the weekly summary of Economic, Stocks, Industry and Cryptocurrency related Business News.
Micron to Establish $2.75 Billion Semiconductor Assembly and Test Plant in Gujarat
Leading computer storage chip manufacturer Micron has announced its plans to establish a semiconductor assembly and test plant in Gujarat, India, with a total investment of $2.75 billion. The company aims to expand its global manufacturing base and better serve customers in India and worldwide.
Strengthening the Semiconductor Ecosystem: Micron’s Contribution to Supply Chain Diversification
Micron’s assembly and testing factory, financed partly by the Indian government, will play a vital role in building a robust semiconductor ecosystem that promotes supply chain diversification. This initiative aligns with global efforts to prevent technological dominance by any single country, particularly in high-end technology sectors.
Micron’s Expansion Plans and Commitment to Serving Indian and Global Customers
Micron President and CEO Sanjay Mehrotra expressed excitement about India’s efforts to develop its local semiconductor ecosystem. The establishment of a new assembly and test facility in India will facilitate the company’s expansion and enable it to cater to the needs of customers in India and across the globe.
Support from Indian Government: Modified ATMP Scheme and Fiscal Incentives
Micron’s project has received approval under the Indian government’s “Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme.” The central government will provide 50% financial support for the total project cost, while the state of Gujarat will offer incentives amounting to 20% of the project cost.
Phased Construction and Job Creation: Micron’s Impact on Employment
The construction of the new assembly and test facility in Gujarat is expected to commence in 2023. Phase 1, featuring 500,000 square feet of planned cleanroom space, is projected to become operational by late 2024. This ambitious project will create up to 5,000 direct jobs and 15,000 community jobs over the coming years, boosting employment opportunities in the region.
Micron’s Investment Transforming India’s Semiconductor Landscape
The investment made by Micron in setting up assembly and test manufacturing in India marks a significant milestone in the country’s semiconductor roadmap. The move will fundamentally transform India’s semiconductor landscape, contributing to its growth as a semiconductor nation and bolstering the burgeoning semiconductor ecosystem.
Micron’s commitment to sustainability will be reflected in the assembly and test facility’s operations, aligning with the company’s global environmental commitments and local regulations.
In summary, Micron’s establishment of a semiconductor assembly and test plant in Gujarat signifies a substantial investment aimed at enhancing the semiconductor ecosystem, serving customers, and creating employment opportunities. This move contributes to India’s semiconductor growth trajectory and aligns with Micron’s commitment to sustainability.
Annual data from Switzerland’s central bank shows an 11% decline in funds parked by Indian individuals and firms in Swiss banks, amounting to 3.42 billion Swiss francs (approximately Rs 30,000 crore). This drop follows two consecutive years of increase and is mainly attributed to a sharp plunge of nearly 34% in customer deposit accounts, which reached a seven-year high.
Official Figures vs. Alleged Black Money: Clarifying the Data
It is important to note that the reported figures represent official data provided by banks to the Swiss National Bank (SNB) and do not indicate the extent of alleged black money held by Indians in Switzerland. Additionally, the data exclude funds held by Indians, non-residential Indians (NRIs), or others through third-country entities.
Components of the Decline: Customer Deposits and Other Liabilities
The total liabilities of Swiss banks towards their Indian clients at the end of 2022 amounted to CHF 3,424 million. This figure includes CHF 394 million in customer deposits, CHF 1,110 million held via other banks, CHF 24 million through fiduciaries or trusts, and CHF 1,896 million as other amounts due to customers in the form of bonds, securities, and various financial instruments.
Swiss Bank Data vs. BIS Locational Banking Statistics
The Bank for International Settlements (BIS) locational banking statistics, considered a more reliable measure for Indian deposits in Swiss banks, reported an 18% decline in such funds to USD 94.4 million (Rs 781 crore) in 2022. This figure includes deposits and loans of Indian non-bank clients of Swiss-domiciled banks.
Switzerland’s Support in Combating Tax Fraud and Evasion
Swiss authorities have consistently emphasized that assets held by Indian residents in Switzerland should not be considered as black money. They actively cooperate with India in its fight against tax fraud and evasion, as demonstrated by the automatic exchange of information in tax matters between the two countries since 2018.
India’s Ranking and Other Countries’ Funds in Swiss Banks
In terms of foreign clients’ money, the United Kingdom holds the highest position with CHF 309 billion, followed by the United States with CHF 133 billion. India ranks 46th on the list, with funds amounting to CHF 3.99 billion. Other countries such as the West Indies, France, Germany, Hong Kong, and Singapore also feature prominently in the top 10.
In conclusion, the recent data highlights a decline in Indian funds held by Swiss banks in 2022. The figures represent official reports and should not be equated with alleged black money. Switzerland continues to collaborate with India in combating tax fraud, while the ranking of countries’ funds reveals the global presence of assets in Swiss banks.
According to Randstad India‘s annual report, Tata Power Company has been recognized as the most attractive employer brand in the country. Climbing from 9th position in 2022, Tata Power Company scored highly in financial health, reputation, and career progression opportunities. This remarkable performance propelled the brand to the winning spot.
Amazon and Tata Steel Secure Spots in the Top 3
Amazon, the renowned e-commerce giant, climbed the rankings to become the runner-up in this year’s survey. Following closely behind is Tata Steel, another new entrant in the top three positions of the REBR 2023 list.
Leading Companies in the Top 10 Attractive Employer Brands
Tata Consultancy Services (TCS), a prominent IT major, secured the 4th position in the top 10 most attractive employer brands. Microsoft, Samsung India, Infosys, Tata Motors, IBM, and Reliance Industries also feature in the esteemed list.
Big Basket Tops the List of Startup Employer Brands
The report highlights Big Basket as the most attractive startup employer brand in India. This online megastore has captured attention with its compelling employee value proposition.
Employee Preferences: Sectors and EVP Drivers
The survey revealed that automotive, IT, ITeS, Telecom, FMCG, Retail, and e-commerce are the sectors that employees find most attractive. Among the employee value proposition drivers, work-life balance, good reputation, and attractive salary and benefits hold significant importance.
Work-Life Balance and Supplementary Income Influence Attractiveness
The report emphasizes that work-life balance, good reputation, and attractive salary and benefits are the primary considerations for the Indian workforce when choosing an employer. Work-life balance is particularly crucial for women. Furthermore, 91% of employees interviewed agreed that an employer becomes more attractive when they allow additional jobs or assignments for supplemental income.
Viswanath P S, MD, and CEO of Randstad India, stated that organizations worldwide recognize the importance of people in driving business success. The report provides insights into the talent pool’s perception of ideal employers, helping organizations identify areas to focus on and bridge any gaps in their employer branding strategies.
The Office for National Statistics (ONS) announced on Wednesday that Britain’s public sector net debt has surpassed 100% of the UK‘s gross domestic product (GDP) in May. This development comes as borrowing turned out to be higher than expected.
Public Sector Net Debt Exceeds 100% of GDP for the First Time Since 1961
The ONS reported that public sector net debt, excluding debt from state-controlled banks, reached a staggering £2.567 trillion ($3.28 trillion), equivalent to 100.1% of the GDP. This marks the first time since 1961 that the debt has surpassed the 100% threshold. It’s worth noting that during the COVID-19 pandemic, the debt briefly crossed this threshold before being revised downward.
May Borrowing Higher Than Expected
In May, government borrowing amounted to £20.045 billion, according to the ONS. This figure exceeded economists’ expectations, as a Reuters poll had projected public sector net borrowing, excluding state-owned banks, to be £19.5 billion.
These results highlight the significant financial challenges faced by the UK government and the impact of the ongoing pandemic on the country’s economy. It underscores the need for careful fiscal management and strategic planning to address the rising debt levels and ensure sustainable economic recovery.
Hyundai Motor has revealed its ambitious investment plan of approximately 109.4 trillion won ($85.4 billion) to be executed by 2032, with a significant portion dedicated to addressing the industry’s shift towards electric vehicles (EVs).
Hyundai’s Investment in EVs and Production Expansion
The renowned automaker, ranking among the world’s top 10 by sales alongside affiliate Kia Corp, announced that around 35.8 trillion won will be allocated to EVs during the 2032 period. Their goal is to sell 2 million EV units annually by 2030. With a focus on its largest market, the United States, Hyundai plans to increase the production of EVs significantly. By 2030, 75% of its U.S. production will be dedicated to EVs, a remarkable rise from the current 0.7%.
Investment in Batteries and Collaboration
Hyundai Motor aims to enhance its competitive edge in battery technology and develop next-generation batteries. The company plans to invest 9.5 trillion won over the next decade to achieve this. By approximately 2025, Hyundai aims to introduce advanced lithium-iron-phosphate (LFP) batteries with increased energy density and improved low-temperature efficiency. Additionally, Hyundai plans to secure over 70% of batteries through joint ventures by 2028, ensuring a stable supply.
Strategic Partnerships and Growth Targets
To reinforce its position in the EV market, Hyundai Motor will collaborate with specialized companies and startups. The company also intends to establish joint ventures with battery manufacturers. Hyundai’s goal is to achieve an operating profit margin of 10% or higher in the EV business by 2030.
Market Adjustments and Future Plans
In China, Hyundai Motor will halt production at another plant, in addition to the closure of its fifth plant. The company also plans to streamline its model lineup, reducing the available options from 13 to eight, with a strategic focus on SUVs and luxury brand models under Genesis.
Hyundai’s comprehensive investment plan demonstrates its commitment to the EV revolution and positions the company to become a key player in the rapidly evolving automotive industry.
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