India and EU seek economic security in turbulent times

The European Union (EU) and India have signed a free trade agreement (FTA) and a defence cooperation deal to seek economic security in a turbulent global environment.

The two most crucial outcomes are the conclusion of an FTA and a security and defence partnership pact.

The landmark trade deal between the EU and India has been Lauded as a major breakthrough for Europe's biggest carmakers, although analysts have flagged competition concerns in one of the world's fastest growing markets.

The deal is set to link almost two billion consumers across the two economies, making it the biggest free-trade agreement by population that the EU has concluded. Talks between the EU and India began in 2007 but were suspended in 2013 before resuming in 2022.

Currently, trade in goods and services between the two regions totals €180 billion annually.

The Commission estimates the agreement will double EU exports to India by 2032 by slashing import tariffs by 96.6%, while the EU will remove duties on over 99% of trade.

The deal is set to open a new market for European cars and other products, showing how the world's middle powers are expanding alliances in response to President Trump's tariffs.

The EU has turned a blind eye to Narendra Modi's friendship with Vladimir Putin to claim the "mother of all trade deals" with India as a victory.

Reference Sources

1. thestarmy - India and EU seek economic security in turbulent times
2. cnbc - 'A day of celebration': What the blockbuster EU-India trade deal means for auto giants
3. wsj - EU and India Reach Free-Trade Deal as World Responds to Trump Tariffs
4. brusselstimes - EU signs historic trade 'deal of all deals' with India
5. telegraph - Modi is real winner in ‘mother of all trade deals’ with EU

Micron plans $24bn memory chipmaking plant in Singapore

US memory chipmaker Micron Technology has broken ground on a new advanced wafer fabrication facility in Singapore that will create about 1,600 jobs as part of a planned investment of roughly $24Bn over the next decade that will support long-term manufacturing requirements and AI-driven demand.

The facility, located within Micron’s existing Nand manufacturing complex in the North of Singapore, will be the country’s first double-storey wafer manufacturing fab. Wafer output is scheduled to begin in the second half of 2028, with the site ultimately providing around 700,000 sq ft of cleanroom space.

Micron makes 98% of its flash memory chips in Singapore.

The expansion comes amid an industry scramble to build AI infrastructure that has left sectors from consumer electronics to AI service providers battling a severe scarcity of all types of memory chips.

Micron said the new investment to build an advanced wafer fabrication facility over the next decade will help it meet growing market demand for Nand memory chips, fuelled by the rise of AI and Data-Centric applications. Production of Nand, a type of memory chip widely used in personal computers, Servers and Smartphones, is expected to start in the second half of 2028. Demand for Nand technology has been skyrocketing in recent months, driven by the rapid expansion of AI and Data-Centric applications.

Reference Sources

1. mothership - Micron invests S$31 billion in new S'pore wafer manufacturing plant
2. nikkei - Micron plans $24bn memory chipmaking plant in Singapore
3. asiaone - Micron plans $30b memory chipmaking plant in Singapore, Money News - AsiaOne
4. wsj - Micron to Invest $24 Billion in Singapore to Boost Chip Production
5. cnbc - Micron to invest $24 billion in Singapore plant as AI boom strains global memory supply

China’s Anta Sports to become top Puma shareholder in US$1.79b deal

Chinese sports shoe and apparel company Anta Sports has agreed to acquire a 29.06% stake in German sportswear company Puma from the Pinault family's Artemis holding company for €1.51Bn ($1.79Bn).

The deal will make Anta the company's largest shareholder.

The deal comes as Puma has struggled to revive sales and follow through on a business overhaul after Arthur Hoeld, a former Adidas executive, took the reins last year.

Anta will pay €35 per share in cash for 43 million Puma shares, giving it a 29% stake.

The price is a more than 60% premium to Puma's last close, according to Bloomberg data, and values the deal at €1.51Bn.

Reuters reported in early January that Anta had offered to buy about 29% of Puma from the Pinault family and had secured financing for the acquisition. However, talks had stalled at the time over valuation.

Reference Sources

1. cnbc - Puma shares surge 20% after Anta Sports buys stake for $1.8 billion
2. thejakartapost - TheJakartaPost
3. nationthailand - China’s Anta Sports to buy major Puma stake in US$1.79bn deal, becoming a top shareholder
4. thestarmy - China's Anta Sports muscles in with US$1.8bil move for 29.1% Puma stake
5. malaymail - China’s Anta Sports to become top Puma shareholder in US$1.79b deal

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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