Three Apple Suppliers Set to Invest $900 Mn Scheme Entails PLI on Sales of Locally Manufactured Smartphones SANKALP PHARTIYAL New Delhi, 28 September

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Three Apple Suppliers Set to Invest $900 Mn Scheme Entails PLI on Sales of Locally Manufactured Smartphones SANKALP PHARTIYAL New Delhi, 28 September Three Apple suppliers set to invest $900 mn Scheme entails PLI on sales of locally manufactured smartphones SANKALP PHARTIYAL New Delhi, 28 September hree of Apple’s top contract manufacturers plan to invest Ta total of $900 million in India over the next five years to tap into a new production-linked incen- tive plan, according to two people familiar with the matter. Foxconn, Wistron, and Pegatron all plan to make investments under the scheme, said the people. India’s new $6.65-billion produc- tion-linked incentive (PLI) scheme offers companies cash incentives on any increase in sales of locally made smartphones over the next five years, compared to 2019-20 levels. The scheme aims to make India an export manufacturing hub. ON THE ~4,000 cr ~1,300 cr ~1,200 cr Foxconn has applied to invest AGENDA Foxconn Wistron Pegatron about ~4,000 crore ($542 million), while Wistron and Pegatron have committed to invest close to ~1,300 arm in India currently assembles the PLI plan largely to boost iPhone crore and ~1,200 crore, respectively, only iPhones. production, said a fourth person. under the PLI plan, the person said. Wistron, which assembles The commitments will help It is unclear whether the entire roughly 200,000 second-generation Apple diversify its supply chain bey- investment will be targeted at iPhone SEs per month in India, plans ond China, which is locked in a trade boosting manufacturing of Apple to scale that up to 400,000 a month war with the US. devices in India, but the people and by the end of the year, one of the Apple started assembling the industry insiders said the vast people said, as the firm looks to cater low-cost iPhone SE through majority would be focused on to export demand for the device. Wistron’s local unit in the tech hub expanding iPhone manufacturing That plan is expected to create of Bengaluru, in 2017. in the country. roughly 10,000 jobs. It later ramped up production, Foxconn said that as a matter of Pegatron is yet to start Indian with Foxconn beginning to assem- policy it did not comment on spe- operations but has been in talks ble iPhones last year and Wistron cific operations or work for any cus- with several states, with Tamil widening operations. tomer. Apple, Wistron, Pegatron and Nadu emerging a frontrunner for a Local manufacturing helps Apple India's technology ministry, which planned plant to manufacture save costly duties levied on imports formulated the PLI scheme, did not Apple devices, said a third person. of fully-built phones and compo- respond to emails seeking comment. Foxconn, which also assembles nents in India, where the Cupertino, While Foxconn, Pegatron and devices for Xiaomi in India, already California-headquartered tech giant Wistron make devices for companies has enough capacity to meet accounts for just 1 per cent of smart- other than Apple globally, Wistron’s Xiaomi’s needs and is likely to use phone shipments. REUTERS .
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