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Apple Supplier Wistron Expanding Operations in India to Ramp Up Production Capacity: Report

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Apple Supplier Wistron Expanding Operations in India to Ramp Up Production Capacity: Report

Wistron currently assembles Apple’s iPhone SE and iPhone 6S models in Peenya, Bengaluru

Highlights
  • Wistron is increasing the authorised capital of its India unit
  • It aims to finish first-phase expansion of Narasapura plant in H1 2019
  • Wistron is also planning move part of PC and IoT businesses to India

Wistron, a Taiwan-based contract manufacturer, has reportedly revealed that it is expanding its investment in India to increase the production capacity of its plant in Narasapura, an industrial area located about 50 kilometres away from Bengaluru. The company is said to be looking to finish the first-phase expansion of the Narasapura plant within the first half of this year. According to a company filing with Taiwan Stock Exchange (TWSE), the company has increased the authorised capital of its Indian subsidiary to Rs. 3,000 crores for the same.

The first contract manufacturer to start assembling iPhone models in the country, Wistron currently produces the older iPhone SE and iPhone 6S models, but with the expansion, it is expected that the company could expand the assembly lines to add more iPhone models. The company's Narasapura plant already has paid capital of Rs. 180 crores, so the latest investment is a significant shot in the arm for the Indian unit.

With the ongoing US-China trade dispute, China-based companies with US clients are looking for ways to minimise the impact of the tariff war. Expanding in India to produce more devices will certainly help Wistron in avoiding the trade war. Notably, a recent Reuters report claimed Foxconn will soon begin assembling higher-end iPhone models, such as the iPhone XS, iPhone XR, and iPhone 8, in India.

Taiwanese publication Digitimes, which was first to report on Wistron's TWSE filing, writes that Wistron is also looking to move some of its PC, IoT, medical and cloud service businesses to India.

Wistron also has plant in Peenya industrial area of Bengaluru city. It is the same plant that is used to assemble the iPhone SE and iPhone 6S units for the country.

Meanwhile, Apple is reportedly also working with Foxconn, another Taiwanese contract manufacturer, to start assembling the expensive iPhone models like the iPhone X family in India this year. According to a recent report, Foxconn that already assembles phones for Xiaomi in the country, could start doing the same for Apple.

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Further reading: Wistron, Apple, iPhone SE, iPhone 6, Foxconn
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