India offers Samsung and iPhone suppliers new incentives to boost local production

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India is giving more than a dozen companies new incentives to invest in the country’s smartphone industry, bolstering an ambitious campaign from Prime Minister Narendra Modi to rebrand the country as the world’s next manufacturing hub.



a person holding a camera: An employee tests the camera quality of mobile phones on an assembly line in the mobile phone plant of Rising Stars Mobile India Pvt., a unit of Foxconn Technology Co., in Sri City, Andhra pradesh, India, on Thursday, July 11, 2019. Foxconn, also known as Hon Hai Precision Industry Co., opened its first India factory four years ago, it now operates two assembly plants with plans to expand those and open two more. The company was integral to Chinas transformation into a manufacturing colossus, and founder Terry Gou has told India's Prime Minister Narendra Modi that Foxconn could help India do the same. Photographer: Karen Dias/Bloomberg via Getty Images


© Karen Dias/Bloomberg via Getty Images
An employee tests the camera quality of mobile phones on an assembly line in the mobile phone plant of Rising Stars Mobile India Pvt., a unit of Foxconn Technology Co., in Sri City, Andhra pradesh, India, on Thursday, July 11, 2019. Foxconn, also known as Hon Hai Precision Industry Co., opened its first India factory four years ago, it now operates two assembly plants with plans to expand those and open two more. The company was integral to Chinas transformation into a manufacturing colossus, and founder Terry Gou has told India’s Prime Minister Narendra Modi that Foxconn could help India do the same. Photographer: Karen Dias/Bloomberg via Getty Images

The program includes 16 companies involved in making smartphones and components, including Samsung, Austria’s AT&S and several Indian firms. Major Apple suppliers Foxconn, Wistron and Pegatron are participating as well — notable inclusions, given how much Apple has been pushing to grab a larger slice of one of the world’s fastest growing smartphone markets.

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The companies have to increase their production of smartphones in the country to benefit, according to a Tuesday statement from India’s Ministry of Electronics and Information and Technology. They will get incentives worth between 4% and 6% of the sales of certain products made in India over a period of 5 years.

The incentive program is expected to bring 110 billion rupees ($1.5 billion) worth of investment to the country’s electronics manufacturing industry, according to the government statement.

The government’s decision to incentivize smartphone makers isn’t a huge surprise. The industry has been

India approves local smartphone production incentives for Apple suppliers

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The Indian government on Tuesday said it was going to approve incentives to 16 companies, including a trio of top Apple suppliers, under a new plan to boost domestic smartphone production.

Smartphone manufacturing has become a cornerstone of a broader push by India to position itself as an export hub for consumer electronics and other products. The so-called “Made in India” drive will see $6.65 billion allotted toward a product incentive scheme to encourage local smartphone manufacturing.

Of the 16 companies approved in the scheme, three are prominent Apple supply chain partners: Foxconn, Wistron, and Pegatron, according to Reuters. Those companies, all of which help produce various iPhone models, must invest in local manufacturing to earn the incentives, however.

Although the Indian government did not specify how much Foxconn, Wistron, and Pegatron plan to set aside for local production, a previous report suggested that they could invest a combined $900 million.

In addition to the Apple partners, Samsung also received approval in the plan, as well as local Indian smartphone manufacturers like Lava and Micromax.

The $6.6 billion Production-Linked Incentive Scheme offers cash incentives on increases in locally made smartphones over the next five years. Each incentive is worth 4% to 6% of additional sales of goods made within India.

Apple has been expanding its manufacturing footprint in the country in recent years. The Cupertino tech giant has plans to locally produce the iPhone SE sometime in the near future, as well as currently unreleased “iPhone 12” models by mid-2021.

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India approves 16 companies, including top Apple suppliers, for smartphone plan

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NEW DELHI (Reuters) – India on Tuesday said it was approving incentives under a federal plan to boost domestic smartphone production to 16 companies, including top Apple suppliers Foxconn, Wistron and Pegatron.

India’s smartphone industry has become a showpiece for Prime Minister Narendra Modi’s “Make In India” drive. The $6.65 billion incentive scheme is part of the government’s aim to make the country into an export and manufacturing hub.

The companies have to invest to tap into the scheme. The government did not disclose what investment Foxconn, Wistron and Pegatron, which is yet to start Indian operations, will make.

Two sources previously told Reuters these three companies plan to invest a total of almost $900 million in India in the next five years to benefit from the scheme.

Samsung, which runs the world’s biggest mobile phone manufacturing plant on the outskirts of New Delhi, also got approval, India’s tech ministry said in a statement.

Five Indian companies, including Lava and Micromax also got confirmation, the statement said. The approved companies are expected to produce smartphones and components of more than 10.5 trillion rupees ($143.05 billion), the statement also said.

The scheme offers a production-linked incentive involving cash worth 4% to 6% of additional sales of goods made locally over five years, with 2019-2020 as the base year.

(Reporting by Sankalp Phartiyal. Editing by Jane Merriman)

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Cyber Daily: EU Takes Aim at Banks’ Tech Suppliers

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Good day. The European Commission proposed legislation that would stop banks and financial firms from using tech services that present known cybersecurity risks. Regulators would have the authority to require banks to suspend or stop using a company’s services if the flaws aren’t fixed, WSJ Pro’s Catherine Stupp reports.

Other news:
Universal Health Services

restores network after cyberattack and is still reconnecting applications; retailer
H&M

fined $41.6 million for privacy abuses; China tells World Trade Organization that TikTok and
WeChat

bans violate cross-border trade rules.

Also today: Cybersecurity jobs of the future.

Banking Security

EU seeks authority to cut off banks’ tech suppliers if they are found wanting on cybersecurity. Banks and other financial institutions could be forced to cut ties with cloud providers and other technology suppliers under a draft European Union regulation that aims to limit cybersecurity risks to the sector.

National regulators in EU countries could require banks to stop using external technology services if their providers fail to fix cybersecurity problems identified in government inspections. The bill goes beyond existing European legislation mandating cybersecurity rules for the finance sector by requiring technology suppliers to also undergo regulatory scrutiny.

Under the proposed rules, authorities can recommend cybersecurity changes to technology providers, which must respond within 30 days on whether they plan to follow the recommendations. Regulators would then monitor whether financial firms have taken those risks into consideration, and can require them to suspend or stop using a company’s services.

“It could be a massive, massive headache.”

— Richard Parlour, chief executive of law firm Financial Markets Law International, on the proposed EU regulation

Regulators’ decisions to stop banks from using certain suppliers will depend on several factors, including how serious their cybersecurity problems are and whether they

EU Seeks Authority to Cut Off Banks’ Tech Suppliers if Found Wanting on Cybersecurity

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Banks and other financial institutions could be forced to cut ties with cloud providers and other technology suppliers under a draft European Union regulation that aims to limit cybersecurity risks to the sector.

National regulators in EU countries could require banks to stop using external technology services if their providers fail to fix cybersecurity problems identified in government inspections. The bill goes beyond existing European legislation mandating cybersecurity rules for the finance sector by requiring technology suppliers to also undergo regulatory scrutiny.

Under the proposed rules, authorities can recommend cybersecurity changes to technology providers, which must respond within 30 days on whether they plan to follow the recommendations. Regulators would then monitor whether financial firms have taken those risks into consideration, and can require them to suspend or stop using a company’s services.

“It could be a massive, massive headache,” said Richard Parlour, chief executive of law firm Financial Markets Law International.

The draft legislation aims to close gaps in the different ways European countries regulate cybersecurity in the financial sector. Inconsistencies in the way financial firms report cybersecurity incidents to authorities and do security tests can be particularly harmful for the finance sector because of its dependence on technology, it says.

Existing European laws already require financial firms to ensure their suppliers respect data privacy and security requirements, including the General Data Protection Regulation, regulations affecting the financial sector and legislation requiring critical infrastructure operators to report cyber incidents to regulators. The new proposal would be the first law giving regulators the power to stop banks’ contractual agreements with technology providers, experts say.

The European Commission, the EU’s executive body, proposed the legal changes last month. They would take effect after negotiations between EU national governments and the European Parliament, which haven’t started yet and can take several months