Jumpstarting Taiwan Outreach… IESA TAIWAN INITIATIVE Launch of IESA Taiwan Desk Ashwini K Aggarwal Chairman, IESA Director- Government Affairs, Applied Materials 21/08/2017 @xlAshwini

Content Plan 1 2 The Team IESA 2017 India Green Shoots…and What is happening in India.... How Taiwan can leverage the emerging opportunities

260+ Strong IESA Member Base IESA’S MEMBER BASE INCLUDES A BALANCED MIX OF BOTH MNCS, SMES AND STARTUPS

India – Green shoots in a weak global economy

Stable Government, Popular PM using ‘Digital’ as the growth hack Digital adoption is on a growth trajectory India has an Australia in it, a Brazil in it …and an Africa in it! ( Upper Income groups are on parity with their counterparts in the developed world; there is a vast base of aspiring Middle income group – and there is a vast multitude at the bottom of the pyramid – job creation and economic sustenance is a key government priority)

Digitization, Infrastructure and Economic Sustenance are on an accelerated growth track… 2nd largest internet user country in 2015 100 GW Solar by 2022 (Adani’s World’s largest solar field in TN) 2nd largest smartphone user country in 2017 The Metro Revolution (35 mln people transported daily in ND,’17) Digital adoption is on a growth trajectory…and India is building infrastructure at an accelerated pace….30km/day highway road construction vs 12km/day 3 years back; solar installations doubled to 10GW+ in’16 ->projected at 20GW fresh installations in’17! @ 63% CAGR, forecasted 2nd largest online buyer mkt by 2022 World class National Highways (DMIC Corridor-zero point, Noida Yamuna Eway)

Challenges abound…but there is a visible impact! Our ease of business ranking improved incrementally to 130…but GST roll out in Q3’17; Labor reforms and insolvency bills likely to enable a leapfrog on the ranking by 2018! * Adapted from Zinnov Ecosystem presentation

Optimistic case Projections ESDM sector – Growth across segments Base case Projections Optimistic case Projections

Visible green shoots will take clear momentum by ‘18 Market Outlook Index of Industrial Production turns +ve 5.7% growth in Nov 2016 FY 16-17 GDP @6.7%E despite demonetization; predicted rebound to 7.5% in Fy’17-18 $-Rs equation stable with Rupee under marginal Pressure Electronics Ecosystem kicks off (limited but visible success) Gionee, Foxconn, Cisco looking at manufacturing in India Increasing assembly of final units in India Tessolve ATMP gets financial closure Import substitution a clear focus in GOI India opportunity- Visible Green Shoots… Adani Solar PV off to a running start on $3 bln project, FAT Q3’17, Commercial production Q4’17 20GW Solar demand forecast for ‘17-18 building interest from other manufacturers SCL (GOI enterprise) reactivates 180 nm 6-8” line with 14 AMAT tools/ TJL contract-producing strategic sector chips design-to-device… Twinstar Display fab finalizes Tech Provider (LG) – moving ahead with Phase 1 mSIPS application

How Taiwan can leverage the India Opportunity Think Again...India is evolving from a pure electronics consuming nation Register with and Leverage IESA International Desk for engaging with the right states, right local partners, right creative opportunities.. Engage with marquee events to understand the market Deftronics Aug 31/Sep 1 IOT Next Forum Nov 9/10 TechTronics Conclave Dec 8 IESA Vision Summit Feb 27/28

India Electronics & Semiconductor Association THANK YOU India Electronics & Semiconductor Association

Progressive Advocacy & Regulatory Interface IESA and NASSCOM is working closely with Minister of Defence, to prepare the first Defence Electronics policy for the country Preparing a DPR for this electronics testing and certification and consultancy facility we expect to be set up jointly with the participation by all stake holders including MoD Ministry of Defence Periodic inputs on a number of policy related issues A number of projects like IOT COE’s, Skill Development Market Research and Knowledge partner (IESA EY Report Launched in February) setting up of both brown field and greenfield EMC’s Ministry of Electronics and IT (MeitY) Trying to leverage the SCL fab (which is under Dept. Of Space) for use by some of the fabless design houses to design test chips and early prototypes of concepts and ideas Workshop was organised by ISRO & IESA for its members on February 7, 2017 at ISRO campus focussing on “Electronics for Space Applications – Opportunities for Indian Industry Department Of Space Improve Ease-of-doing business Address MOEF issues Expand industry opportunities Other Ministries/Departments /states

Enable Investment, Innovation & Industry Kickstart the Taiwan Desk Vision More than a feet-on-street $500mln in 5 years translates to a sales quota approach to funnel management Spray-n-Pray to be supplemented by a focused sector-wise panning approach ( POS machines, Solar PV, Display related opportunity scans) Marketing India, Indian ESDM Enhance value to members thru appropriate collaboration engine Expand Innovation Ecosystem, Continue building start-up programs and add an IoT/hardware incubation COE in a strategic state

Enable NETRA-Talent CIGs flagship program Develop industry-ready next generation engineers Leverages Technology Research, In-Chip program, Campus startups Implements a hub-n-spoke scalable model with following immediate goals: Incubation stage 3 campuses, 4+ ESDM startups in each campus Capability building Industrial courses in 5 campus Tech Research In at least 1 campus In-Chip Program Create and test IoT chip (Venus) with collaboration of 5 campuses and industry

Expand Member Program Expand member base Consolidate chapters (Delhi-> Chennai, Pune, Hyderabad) Expand value-to-members Revisit, Revitalize CIG programs Leverage International links/alliances and enable opportunities for India members

How can IESA catalyze the market opportunity Innovate Drive innovation and value creation as focus area for Indian Industry Synchronize Catalyze Upskill, kickstart startups, catalyse change Synchronize India Government, Industry, academia Pull Lead Overseas investor drive/ JVs and mega projects Evangelize Co-create and evangelize Measure…

Jumpstarting startups… IESA INNOVATION INITIATIVE – The i3 Program Ashwini K Aggarwal Chairman, IESA Director- Government Affairs, Applied Materials 15/12/2016 @xlAshwini Event Hashtag #i2Hyd200617

There is an upward migration of the Indian consuming class Demonetization Program is expected to pull the growth rate for FY’16 to 6.7% but the world bank forecasts that this will rebound to 7.5% in coming fiscal year

Current Scenario in the Electronics Sector

Electronics Product Market and Domestic Manufacturing

Total market demand by verticals (%)

Content Plan 1 2 3 The Team IESA 2017 India Green Shoots..and the Startup Opportunity 2 Startup India – SWOT Analysis Analysing the landscape ( TBI, startups & positions) IESA Innovation Initiative CIG Talent / NETRA – driving a hands-on culture/pedagogy CIG Startup Design&Device- incubation to acceleration 3 IESA priorities and on-ground activation plan

India Electronics & Semiconductor Association (IESA) Build Brand India through International Alliances: Bilateral business growth and sharing best practices Established in 2004 - The voice of the electronics, semiconductor and embedded systems industry in India, with 260+ members, including Indian and MNCs Design Houses Embedded Design VLSI Design Board Design Fabless Semiconductors MNC Fabless SME Fabless IP Providers Manufacturers Test/Assembly Capital Equipment Suppliers/Support EDA Government Training, consulting Services University

Content Plan 1 2 3 The Team IESA 2017 India Green Shoots…and Market Opportunity Overview How India can leverage the emerging opportunities 3 IESA priorities and on-ground activation plan