Apple’s contract manufacturer Wistron Corp to build a new assembly facility in Bengaluru

  • Apple’s contract manufacturer Wistron Corp to build a new assembly facility in Bengaluru
15-03-2018 | Pratidin Bureau. |

Karnataka Government has approved Wistron Corp, a unit of Apple Inc’s Taiwanese contract manufacturer to build a new assembly facility in the south Indian state, signaling a potential expansion of iPhone assembly work in India.The state government has granted Wistron Infocomm Manufacturing India Pvt Ltd’s application 43 acres of land, roughly 65 km (40 miles) from the tech hub of Bengaluru, revealed Reuters. It will invest 6.8 billion Indian rupees ($105 million) to develop this land and manufacture smartphones, internet of things (IOT) products and bio-tech devices.Wistron, in its proposal to the state government, said the new plant will create about 6,000 jobs.

“When discussions started, their (Wistron’s) requirement was 50-100 acres,” a senior government official told Reuters. “But we were not immediately able to provide all the land.”The official, who declined to be named as discussions were not public, added the state had assured Wistron of meeting the company’s land requirements.
The expansion of manufacturing facility could mean a widening of Apple’s iPhone assembly in India as the U.S. tech giant has to pay heavy duties on devices imported into the country.Analysts see India as one of the world’s fastest-growing smartphone markets and would prove as a key to Apple’s ambitions for a bigger global market share as smartphone sales have slowed in more mature markets.
Wistron’s ICT Service Management Solutions unit currently assembles Apple’s low-cost iPhone SE model in Bengaluru. Wistron also does contract manufacturing work for a broad range of other electronics brands.

Cupertino, California based Apple has, however, signaled its long-term commitment to Wistron’s Indian operations. In a report on supplier responsibility progress it said it provides waste management training and has also introduced women’s health programs at the existing Bengaluru plant.
Apple expects boosting local assembly or manufacturing will also help it cut escalating labor costs in China, where its biggest contract manufacturer Hon Hai Precision Industry Co, widely known as Foxconn, makes a bulk of iPhones and iPads.
The new site at the Narasapura Industrial Area is located 50 km away from the Bengaluru International Airport. The assembly operations of firms like Honda Motorcycle and Scooter India, and Mahindra Aerospace are also located in that site

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