Taiwanese Apple suppliers expand operations in India

28-Nov-2020 Intellasia | TaiwanNews | 6:02 AM Print This Post

Three Taiwanese Apple suppliers are expanding their operations in India thanks in part to generous investment incentives and the American push for “moving factories out of China,” media reported.

Taiwanese electronics manufacturer Pegatron confirmed the news earlier this year that it has registered a company in Chennai as a subsidiary. CNA reported that Pegatron’s construction of a plant at Mahindra World City Chennai is underway and is expected to be completed in December of this year.

The company is Apple’s second-largest contract manufacturer and is said to have invested $10.9 billion INR (NT$4.23 billion) in India through its new subsidiary, Pegatron India. Pegatron is now looking for another plot of land in Tamil Nadu and Andhra Pradesh to set up its second Indian factory.

If construction wraps up on schedule, Pegatron can begin commercial production in June 2021 at the earliest. Meanwhile, Wistron and Foxconn are building more factories in the southern Asian country.

The two companies have been accelerating their expansions into India after receiving a grant approved by the Indian government. Foxconn and Wistron are said to have promised investments of $40 billion INR and $13 billion INR, respectively, in India to receive the production-linked incentive.

Foxconn currently assembles the iPhone XR and iPhone 11, while Wistron produces the iPhone SE, iPhone 7, and iPhone 8.

CNA attributed US-China trade tensions, massive pandemic-related shuffling of global supply chains, and a push by American companies to withdraw from China as having encouraged the three Taiwanese contract manufacturers to bring their production capacity to other countries. India and Southeast Asian countries have been particularly attractive options.

People familiar with the matter told CNA that Taiwanese Apple Macbook manufacturer Quanta Computer is mulling over a plan to move part of its production capacity from China to India.



Category: Taiwan

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