AGP Executive Report

Policy & Investment (India): India’s Lok Sabha cleared the Taxation and Other Laws (Amendment) Bill, extending income-tax exemptions for foreign firms supplying electronics contract manufacturing and customs-bonded component storage, while also easing rules for foreign cloud companies using Indian data centres. Trade & Costs (Solar): A reported US 15% tariff on polysilicon imports is framed as protection for US producers but would likely raise costs for US solar and related industries. Tech Supply Chain (Semiconductors): TSMC reportedly has about $1B of finished Apple A20 Pro chips stuck because the required LPDDR5X memory can’t be integrated yet, highlighting how packaging choices can halt production. Energy Storage (India): Pace Digitek posted strong Q1 FY27 results and operationalised an extra 2.5 GWh BESS manufacturing platform, doubling capacity to 5 GWh with plans to reach 10 GWh. Automation & Procurement (India): Enlight Metals launched an AI platform promising 24-hour steel procurement and delivery, cutting transaction processing time by 75%. Industrial Growth (China): China’s machinery sector grew in H1 on smart equipment and high-end machine tools, with profits up sharply. Regulation (US HVACR): The EPA finalized revisions to its refrigerant “Technology Transitions” rule, removing a 2026 installation deadline for R-410A and triggering mixed reactions and lawsuits. Manufacturing Jobs (US): Novolex plans to permanently close a thermoforming plant in Aiken County, affecting 133 jobs. Defense Manufacturing (Europe): ParaZero won an initial order from a Tier-1 European defense manufacturer to integrate its DefendAir Net Pods into an autonomous counter-drone system.

FDA Pressure on Cancer Drug Shortages: Senators Kirsten Gillibrand and Rick Scott urged the FDA to fix shortages of key generic chemotherapy drugs like ifosfamide, carboplatin, cisplatin and oxaliplatin, while protecting patient safety and regulatory standards for imports. Education-to-Industry Pipeline: New Zealand unveiled nine industry-designed secondary subjects for 2029, including next-gen manufacturing and applied intelligent systems, aiming to align school skills with future jobs. Clean Energy Industrialization: Pakistan’s clean-energy push is shifting from rooftop solar adoption to building local manufacturing for panels, batteries and inverters, with calls for stable policy and skills to keep value at home. Tax Monitoring for Poultry Feed Makers: Pakistan’s Islamabad High Court upheld monitoring orders under Section 40B, allowing Inland Revenue officers to oversee production, sales and stock at poultry feed manufacturers. M&A in Medtech Manufacturing: KKR agreed to acquire Integer for about $5.7B, signaling continued consolidation in medical device manufacturing. Supply Chain & Trade Tension: Reports say the Trump administration is preparing tariffs and minimum prices on imported polysilicon to boost domestic solar and semiconductor production. Defense Manufacturing Expansion: Iten Defense broke ground on an Ashtabula County expansion, targeting up to 100 new jobs and new armor production capacity. Automation & Robotics in Aerospace: Kea Aerospace opened a new Christchurch facility with mission control for UAV/spaceflight testing, backed by a growing local aerospace hub.

Biologics Manufacturing Expansion: CSPC and AstraZeneca signed a JV to build a next-gen biologics manufacturing plant in Shijiazhuang, with CSPC holding 51% and using AI-enabled GMP systems alongside AstraZeneca’s global quality and supply-chain know-how. Medical Devices Footprint: Medacta International plans a $85m Spring Hill, Tennessee operations expansion, targeting 200+ jobs and strengthening its U.S. manufacturing base. Energy Grid Hardware Demand: India’s solar buildout is outpacing transmission, keeping transformer and substation makers under pressure to scale and deliver faster, while ALMM List-II rules are reshaping solar cell and module sourcing strategies. EV Engineering Software: Simple Energy expanded Siemens cloud software use (Teamcenter X and Designcenter X) to manage rising EV engineering complexity and variant configuration. AI Data Center Supply Chain: The FCC is drafting a ban on new Chinese-made optical transceivers for AI data centers, but replacement makers face indium phosphide supply constraints. Industrial Growth & Jobs: Indonesia’s Q2 GDP rose 5.29% y/y, with manufacturing contributing 0.90 percentage points to growth. Corporate Moves: GE Vernova announced a $166m Pennsylvania expansion tied to 714 jobs; Holley posted Q2 results with net sales up 3.2%.

EV Incentives: The Philippines approved its P60B Electric Vehicle Incentive Strategy (Evis) to pull investment into local EV manufacturing and strengthen supply chains. Industrial Costs & Energy: Nigeria’s Manufacturers Association launched an Industrial Energy Adoption Programme to cut manufacturers’ power costs and improve competitiveness. Digital Manufacturing: Rockwell Automation says Saudi roaster Arriyadh Roaster chose Plex to boost shop-floor visibility and traceability. Automation in Healthcare: New robotic systems for blood draws and feeding tubes are gaining traction as hospitals face staffing gaps, though U.S. clearance is still pending. Food Manufacturing Jobs: U.S. food manufacturing hit a record 1.77M workers in 2025, even as its workforce share keeps shrinking. Policy & Trade: States sued to block Trump tariffs, arguing they’re undermining manufacturing gains. Semiconductors: SEMI named Arizona as the long-term host for SEMICON West, moving to a spring schedule in 2027. Legal/Compliance: South Dakota is set to receive nearly $1M from a multistate Sandoz generic drug price-fixing settlement.

Industrial Policy & Investment: India’s Taxation and Other Laws (Amendment) Bill, 2026 targets more foreign capital and easier operations by giving clearer, more predictable tax treatment for funds, cloud and data centres, plus extending contract-manufacturing tax benefits for eligible players to 2041. Manufacturing Performance: Latvia’s industrial production rose 0.5% YoY in June, with manufacturing up 5.0% as output gains showed in food, metals, chemicals and electronics. Energy & Industrial Scale-Up: Enphase says it will keep designing and manufacturing critical power electronics in the US, including plans for its AI data-centre solid-state transformer platform. AI for the Factory: Fasoo AI expands data protection to “screen security,” aiming to stop IP leaks via screenshots and screen capture in PLM/CAD/ERP/MES workflows. Dealmaking & Capacity: Prysmian agreed to buy Atkore for about $3.8bn to expand North American electrical infrastructure manufacturing and distribution. Solar Supply Chain: RenewSys India highlights demand for higher-reliability PV encapsulants and backsheets as India’s solar manufacturing ecosystem grows. EV & Logistics Demand: India’s industrial leasing hit a record 36.2m sq ft in H1 2026, led by warehousing and 3PL, with manufacturing and auto activity driving absorption. Corporate Moves: INGENYX launched as an independent medical-device OEM after Teleflex carve-out, while 3D Systems outlined a CEO transition plan.

AI & IP Security: Fasoo AI says screen security is a major blind spot in manufacturing, launching Fasoo Smart Screen to deter screenshot/photo leaks and extend protection to what’s displayed. Workforce Pipeline: New Zealand’s Earn as You Learn programme expands to more regions, paying young trainees while rotating through real manufacturing workplaces. Semiconductor Research: Warwick’s WMG adds two compound-semiconductor experts to boost SiC power device research toward industrial-scale manufacturing. Manufacturing Growth (US): ISM reports July manufacturing at a 4-year high (PMI 55.6), with production and new orders accelerating despite pricing volatility and geopolitical risks. Boeing Supply Chain: FAA certifies the smallest 737 Max 7 after years of delays, clearing another step for Boeing’s production recovery. Domestic AI Hardware Buildout: Wistron opens a $700M Fort Worth facility to assemble and test Nvidia AI superchips, aiming to shorten delivery and strengthen supply resilience. Food & Pharma Policy: HHS revives a revised 340B rebate model pilot despite hospital pushback, while EPA grants Delek biofuel blending relief but denies HF Sinclair hardship waivers. Industrial Expansion: Minth Group breaks ground on a $430M Gadsden automotive campus expected to create 1,300+ jobs.

M&A in healthcare manufacturing: Curium has signed a definitive deal to merge with Lantheus in a transaction valued up to $8.0B, combining theranostics and radiodiagnostics manufacturing and supply across 70+ countries. EV charging hardware: RoadGrid India secured INR 13 crore from India’s Technology Development Board to build a manufacturing and assembly facility for its Universal EV Charger, targeting March 2027 start-up and 2,000 units/year capacity. Semiconductor push: India kicked off Phase 2 of its Semiconductor Mission with ₹127,500 crore to expand chip manufacturing and the wider supply chain. Industrial safety and compliance: China’s industry regulator inspected Chery, NIO and others to tighten product safety assurance and production consistency for intelligent connected vehicles and batteries. Auto recall: Stellantis issued a global recall of 1.5M Ram 1500 trucks (2019-2026) over a manufacturing oversight that could affect seatbelt anchor integrity. Food and pharma supply risks: South Africa faces a phenobarbitone shortage for epilepsy treatment as Sun Pharma upgrades its oral solid dosage facility; meanwhile, FSSAI in India moved to bar certain rum/whisky products over “nature-identical” flavouring claims. Regional factory momentum: UK manufacturing PMI held expansion in July with output rising fastest in nearly two years; ASEAN PMI improved to 52.8, signaling stronger demand and production.

Semiconductor Supply Crunch: South Korea’s chip materials and equipment makers are ramping investments for an AI-driven supply squeeze, but many smaller suppliers lack margins and funding as banks tighten lending. China Industrial Competitiveness: Despite trade and geopolitical headwinds, China’s net goods exports keep rising, with analysts debating whether “below-market” financing and industrial policy—not just subsidies—explain the edge. Automation on the Shopfloor: Chinese robotics firms are pushing AI-powered palletizing and flexible automation overseas as manufacturers seek lower labor costs and faster scaling. India Telecom Manufacturing Zone: India’s DoT and Madhya Pradesh signed an MoU for a 350-acre plug-and-play Telecom Manufacturing Zone in Gwalior, with ₹493 crore for Phase I infrastructure and land support. Defense Manufacturing: Ford is bidding to supply the U.S. Army with prototype tactical Super Duty trucks, aiming to close a major production gap. Energy Inputs Hit Costs: Sulfur prices jumped 134% after the U.S.-Iran war disrupted shipping through the Strait of Hormuz, lifting fertilizer-linked production costs. Global Demand Signals: China’s factory activity contracted in July as new orders weakened and typhoons disrupted output. EV Manufacturing Push (Philippines): The Philippines enters SE Asia’s EV race with a $1b manufacturing subsidy to build local capacity.

Semiconductor Manufacturing Push (India): Prime Minister Narendra Modi virtually laid the foundation stone for ASIP Technologies’ semiconductor assembly, packaging and testing plant in Visakhapatnam, Andhra Pradesh, with an initial ₹460 crore investment and about 96 million units annual capacity, partnering with South Korea’s APACT and targeting advanced 2.5D/3D packaging. Offshore Energy (India): The Union Cabinet cleared “Samudra Manthan,” a Rs 84,084 crore offshore oil and gas exploration scheme through FY2030-31, aiming to cut import dependence and build an offshore ecosystem. Defence Tech (India): DRDO and Hyderabad-based Azad Engineering delivered India’s first indigenous expendable turbojet engine, designed for one-time use in missiles, loitering munitions and UAVs. Regulation & Compliance (Philippines): The BIR ordered tobacco and vape firms to register brands and variants within six months under a new circular, with stamp and graphic warning requirements. Health & Consumer Safety (Tanzania): Doctors warned young people in Tanzania about mixing energy drinks with alcohol, linking the trend to rising non-communicable disease risks. Industrial Diversification (Trinidad & Tobago): Pennywise said FX pressures are pushing it toward manufacturing after retail success. Food Manufacturing Policy (South Africa): ITAC recommended raising peanut butter import duty to 20% to protect local producers.

Semiconductors & Electronics: India’s PM Modi virtually laid the foundation for ASIP Technologies’ ISM-approved semiconductor OSAT unit in Andhra Pradesh, a Rs 2,500-crore project targeting 1,000+ direct jobs and scaling from wire-bond/flip-chip packaging to 2.5D/3D. Semiconductor Markets: TSMC’s record quarter lifted AI-chip demand, but its higher 2026 capex guidance sparked a selloff in semiconductor stocks and spilled into crypto-adjacent miners. Industrial Policy & Zones: India and Madhya Pradesh signed an MoU to create a Telecom Manufacturing Zone in Gwalior, aiming to cut reliance on imported telecom hardware. Manufacturing Compliance & Enforcement: Pakistan’s FBR raided an alleged ghost cigarette factory in Swabi, seizing major production equipment; Egypt urged factories to register on a Manufacturers Support Platform for faster government support. Energy & Materials: Pakistan’s steel melters and re-rollers will pay sales tax based on electricity consumed per unit from July 1, 2026. AI for Pharma: A Martin Dow executive said AI can shift Pakistan’s pharma toward predictive, data-driven “Pharma 4.0” manufacturing. Logistics for Food Manufacturing: Nigeria’s BUA Group will invest $85m to expand Port Harcourt’s terminal, adding 600m quay frontage to boost cargo capacity for its food supply chain. Security & Risk: A Coldcard wallet flaw reportedly enabled theft of at least 594 bitcoin, highlighting manufacturing-grade risks in hardware supply chains.

Nuclear & Energy Tech: China connected Unit 3 of the Changjiang Nuclear Power Plant to the grid, advancing its homegrown Hualong One build and boosting clean output for Hainan’s energy needs. US Workforce & Supply Chain: The Intermountain-West Nuclear Energy Corridor Tech Hub, led by the University of Wyoming’s Manufacturing Works, won U.S. Commerce funding to speed next-gen reactor commercialization and strengthen regional supplier capacity. AI-Driven Power Demand Debate: In the Philippines, lawmakers are challenging Pax Silica’s New Clark City data-center/AI plan, warning it could strain national electricity and be used to justify modular nuclear imports. Industrial Policy: Haryana unveiled an MSME and export promotion policy targeting Rs 55,000 crore in manufacturing investment, 5 lakh jobs, and export growth via subsidies, clusters, and faster approvals. EV Manufacturing Moves: BMW starts 2027 i3 sedan production in Munich in August 2026 as the plant shifts to EV-only output; SWITCH Mobility secured 650 electric bus orders for Mumbai and Pune deployments. Food Safety Enforcement: India’s FSSAI suspended Switz Foods’ licence after inspections found unhygienic conditions, pest infestation, and poor sanitation, ordering a shutdown until fixes are made. Defense Manufacturing: Nigeria’s CDS backed local defence production at DICON, while Benue police arrested suspects in an illegal firearms manufacturing case and recovered AK-47s and pistols. Regional Manufacturing Growth: Royal Enfield reported a 38% jump in July domestic sales and announced Rs 1,225 crore for a new Andhra Pradesh motorcycle plant.

EV Incentives in Southeast Asia: The Philippines operationalized its P60B Electric Vehicle Incentive Strategy (Evis) with a P15B-per-maker support model for EVs produced locally, aiming to pull more manufacturing investment into the country. Semiconductor Push in India: India accelerated its industrial strategy across semiconductors and electronics, with commercial production starting at a CG Semi OSAT facility in Gujarat and Cabinet approval for Semicon 2.0 plus a Mobile Phone Manufacturing Scheme. Semiconductor Supply-Chain Expansion (US): Lam Research is in line for up to $1.7B in investment in Tualatin, Oregon, as local talks move through a state incentive framework. Drone Manufacturing Funding (US Defense): PDW Holdings secured a conditional $820M loan commitment from the U.S. Department of War’s Office of Strategic Capital to expand domestic drone and robotics component manufacturing. Manufacturing Workforce & Automation: Evers & Sons added advanced fabrication systems to boost precision and capacity, while Mission Critical Group partnered with College of Western Idaho to train employees for specialized welding. Policy & Compliance in Manufacturing Tech: Idaho Falls amended its contract with Flock to bar use of city camera data for machine learning or AI training. Industrial Economics Signals: China’s manufacturing PMI slipped to 49.2 in July, while Chicago PMI rose to 57.6, pointing to uneven regional momentum. Local Industry Wins: ADM will invest $16M to expand color solutions production in Kentucky, adding 40+ jobs.

ASEAN Industrial Push: Malaysia urged ASEAN to cut “friction” and coordinate supply-chain roles as global manufacturing shifts, pointing to cross-border zones like Johor–Singapore as a model. Philippines EV Manufacturing: Marcos signed an EV Incentive Strategy (EVIS) program to steer time-bound, performance-based tax support for domestic EV production and build an EV supply ecosystem. Malaysia Growth Watch: Malaysia’s Q2 GDP rose 5.8% on stronger manufacturing and services, with electrical and electronics sales jumping 26.4% in May. China Labor-to-Industry: China will expand job support for retired service personnel into emerging sectors including new energy vehicles and high-end equipment manufacturing. Semiconductor Supply Chain: Linde will invest $1B in Arizona to expand ultra-high-purity gas capacity for a leading semiconductor customer, while SEMI reported Q2 silicon wafer shipments up 7.4% year-on-year on AI demand. China Factory Cooling: China’s manufacturing PMI fell to 49.2 in July, with equipment and high-tech still expanding. India Telecom Zone: India plans a telecom manufacturing and research zone in Madhya Pradesh (Gwalior) with a 350-acre cluster aimed at boosting domestic production. Electric Mobility Milestone: Olectra deployed its 4,000th electric bus in India, handing over units to Himachal Pradesh’s HRTC. Commercial Vehicles: EU registrations rose for vans, trucks, and buses in H1 2026, with electrified vans gaining share. Manufacturing Safety Recall: Toyota recalled 2,015 Urban Cruisers in South Africa over a fuel-gauge manufacturing defect that may delay the low-fuel warning. Energy Infrastructure Buildout: Sterling Green Power Solutions inaugurated a Talegaon plant near Pune to make 100–750 kVA diesel generator sets.

EV Incentives: Philippines President Marcos signed EO 121 to launch the Electric Vehicle Incentive Strategy (Evis), offering up to P15B per enrolled EV model via tax payment certificates, with four slots for manufacturers to build hybrid and battery EVs and parts locally. Energy Policy: India’s transport minister says E20 ethanol-blended fuel has no verified engine-failure link across 20+ crore vehicles, citing lab and real-world use; protests are planned over mileage and damage concerns. Renewables Manufacturing: Tamil Nadu’s wind industry group released an action roadmap tied to a Wind India Leadership Summit, pushing manufacturing hubs, grid readiness, offshore wind and repowering to accelerate investment. Industrial Jobs Risk: Uncertainty over U.S. Army budgeting puts thousands of jobs at Boeing’s Chinook helicopter plant in Delaware County, Pennsylvania, at risk, with local businesses tied to the facility bracing for fallout. Corporate/Legal: Massachusetts court ruled Skechers owes nearly $200k in back excise taxes and interest, rejecting its claim it isn’t a manufacturer. Power & Infrastructure: Nextpower completed its acquisition of Zigor power conversion assets, expanding inverter tech and U.S. manufacturing capacity for solar and energy storage. Packaging Capacity: Sonoco is expanding wood reels manufacturing and assembly in Alabama and Texas to support AI data center and grid modernization demand. Product Safety: Consumer NZ says a UK-recalled “Squeezy Dumplings” toy can still be bought online via AliExpress, highlighting gaps in New Zealand’s product safety system. Cybersecurity: Mining firms face rising cyberthreats as operational tech and cloud-connected systems spread, with attacks targeting disruption and espionage. Healthcare Manufacturing: FDA licensed shelf-stable freeze-dried plasma (Ezplaz) for adult transfusion when other plasma products aren’t available, targeting field and disaster settings.

Rare Earth Push: The Pentagon’s $50M move via MP Materials spotlights a rare-earth supply-chain bet aimed at building a domestic U.S. champion. Semiconductor Manufacturing: K-Test will invest $50M in a Perak wafer testing facility, targeting completion in Q1 next year and strengthening Malaysia’s OSAT ecosystem. EV Industrial Policy: Philippines President Marcos signed an EV incentive strategy to pull EV makers into local vehicle and parts production, aiming to build a regional manufacturing hub. Automotive Supply Chain: L&T says it will set a sovereign connected-vehicle data standard for India and booked a five-lakh EV traction motor order for delivery over three years. Battery Storage Buildout: Mecpower Solutions and Gujarat signed an MoU for a proposed 5 GWh BESS assembly facility. Regulatory Clampdown: Virginia created a new enforcement unit to crack down on illegal vapes, THC/kratom and other intoxicants. Medtech Expansion: CereVasc opened a new Wilmington, Massachusetts manufacturing and R&D facility to support eShunt commercialization plans. Industrial Jobs: International Motors filed a WARN notice for layoffs of 1,341 Springfield workers tied to a Roshel asset sale. Pharma Quality: India says enforcement action hit about 90% of inspected high-risk pharma sites in its quality crackdown.

Workforce & Training: TCAT Dickson launched a new Tile Manufacturing Operator program at its Clarksville campus, adding 600 hours of hands-on training plus embedded certifications to feed local tile and production roles. Automation in Production: KUKA AMP went live at KUKA Toledo Production Operations in Ohio, connecting existing automation with AI decision-making to boost flexibility and productivity in high-volume vehicle body production. CNC for High-Mix Shops: VersaBuilt is showcasing standardized CNC automation at IMTS 2026, aiming to simplify deployment and reduce reliance on robot programming for mills and lathes. Defense & Aerospace Manufacturing: Tekever unveiled its AR6 heavy-lift autonomous aircraft and expanded composites partnership support, with production planned in its Swindon hub by end-2026. Industrial Policy & Energy Costs: Energy UK warned UK manufacturers face sky-high electricity prices and called for bolder policy changes beyond current relief schemes. Auto Supply Chain Pressure: SMMT said UK vehicle production fell 7.5% in the first half, citing tariffs, policy uncertainty, and uncompetitive costs. EV Infrastructure Buildout: BYD is targeting ~500 charging points by end-2026 in the Philippines, urging faster permitting support from government as it scales AC Mobility’s network. Rail Procurement: Canada selected Stadler to supply 45 hybrid battery-diesel locomotives for VIA Rail, bringing final assembly back to Canada. Corporate Results: Algoma Steel reported Q2 results amid its EAF transition, while NWPX Infrastructure posted record Q2 revenue and backlog.