Apple Partner Wistron May Expand Bengaluru Plant

by CXOtoday News Desk    Jan 03, 2017

wistron

Wistron Corp, a Taiwanese smartphone component manufacturer that counts Apple Inc as a major customer, is seeking approval to expand its Bengaluru plant, Reuters reported on Monday.

Winston, the information and communication technology supplier has requested the Karnataka government to fast-track its application, the report said, citing a high-ranking regional government official.

Apple is also in discussion with the Indian government about the possibility of manufacturing its products in India.

Wistron’s move comes less than two weeks after the US tech giant, in a letter to the federal government in November, outlined manufacturing plans and asked for financial incentives. 

In India too, Prime Minister Narendra Modi is trying to boost technology manufacturing through his ‘Make in India’ initiative started in 2014. The government currently imposes heavy taxes on electronic products like smartphones imported to India to encourage local production. 

“Wistron has approached us to expedite certain clearances with regards to the augmentation and expansion of its existing unit,” said the official, who was not authorized to speak publicly on the matter and so declined to be identified, according to the Reuters report.

Whether Apple will begin manufacturing in India is unknown, but Wistron’s desire to expand “pretty quickly” could represent “several steps in that direction,” the official said.

Earlier this year, Apple went to seek the government’s permission to sell refurbished iPhones in India. The Indian government, however, rejected the proposal, saying refurbished and old electronic products significantly add up to electronic waste. 

Much of Apple’s products are manufactured in China by Foxconn, even though, Foxconn has factories in Southern India and it already assembles smartphones for many brands, including Nokia and Xiaomi, among others.