OCTOBERASIA BUSINESS OUTLOOK9NEWSROOMOIL PRICES WITNESS DISRUPTIONS AS MIDDLE-EAST CONFLICTS ESCALATETokyo Electron Ltd., Japan's leading chip equipment manufacturer, is looking to establish a team of chip engineers in India to align with the Modi government's initiative to boost semiconductor manufacturing in the country. The company aims to hire and train local engineers around 2026, starting with providing technical support to Tata Electronics Pvt, according to CEO Toshiki Kawai. Robotics will increasingly play a role, and support will be offered from Japan both in-person and remotely, although specific hiring numbers were not disclosed.India is actively pursuing international electronics companies and chipmakers to set up operations, in line with Prime Minister Narendra Modi's vision to reduce the technology gap between India and more advanced nations. Apple is ramping up its iPhone production in India, while Tata Group and others are making significant investments in semiconductor fabs. The Indian government is providing incentives to support these ventures, which will require equipment and expertise from global firms like Tokyo Electron.Tokyo Electron plans to hire 10,000 new employees globally over the next five years as demand for domestic chip production rises across several countries. The company, a supplier to Taiwan Semiconductor Manufacturing Co., Samsung Electronics, SK Hynix, and Intel, forecasts record revenue and profits for the fiscal year ending in March. It also expects overall chip demand to double by 2030, driven by artificial intelligence, autonomous vehicles, and efforts towards energy efficiency and carbon neutrality. Oil prices rose slightly on Monday amid growing concerns over potential supply disruptions in the Middle East following intensified attacks by Israel on Iranian-backed forces. Brent crude futures for November saw a modest increase of 16 cents (0.22 percent) to $72.14 per barrel, while the more active December contract gained 10 cents (0.14 percent) to $71.64 per barrel. U.S. West Texas Intermediate (WTI) crude also edged up by 8 cents (0.12 percent) to $68.26 per barrel.Despite recent declines last week, where Brent dropped by 3percent and WTI by 5percent, Monday's gains were driven by escalating tensions in the Middle East. Concerns have risen over the possibility of Iran, a major OPEC producer, being drawn further into the conflict. ANZ Research noted that these tensions increase the risk of potential supply disruptions from Iran.Over the weekend, Israel expanded its military operations, targeting Houthi positions in Yemen and continuing its confrontation with Hezbollah after the killing of its leader, Sayyed Hassan Nasrallah, in Lebanon. The U.S. also stepped up its military presence in the region, with Defence Secretary Lloyd Austin stating that Washington would take necessary measures to defend its personnel if targeted by Iran or its allies.Later in the day, markets are expected to focus on remarks from Federal Reserve Chair Jerome Powell, which could provide insights into the central bank's stance on monetary policy easing. However, downward pressure on oil prices remains as OPEC+ plans to raise output by 180,000 barrels per day in December, along with the resumption of oil exports from Libya. JAPAN LOOKS TO ASSIST INDIA IN ITS CHIP MANUFACTURING ENDEAVOUR
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