Wistron, a contract manufacturer of Apple iPhones in India, plans to invest Rs 1,150 crore in the Karnataka state, India, during the first phase of operations, The Hindu reported.
Taiwan-based Wistron will progressively manufacture components in Karnataka in Phase II and Phase III.
Apple has given the component manufacturing contract to Wistron. Apple is demanding tax concessions and incentives from the State government.
“There is a long wish-list. As far as the import duties are concerned it is in the court of the Government of India. The Ministry of Electronics and Information Technology, the Department of Revenue and other ministries will have to take a call,” said Gaurav Gupta, principal secretary, Information Technology, Bio-Technology and Science and Technology to the State government.
The Union Government does not want to reduce the duties on components as it will hurt domestic products, he said. Wistron’s rival Foxconn has announced plans to invest $5 billion in Maharashtra.
Apple was testing the waters to see if the State had a robust manufacturing and export ecosystem, Gupta said. “We are engaging with them for the last two years; Wistron has already started operations in a restricted manner in Bengaluru and had upgraded to a new facility,” he added.
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 earlier sounded its commitment to Wistron’s Indian operations. Apple, in a report on supplier responsibility progress earlier, said it provides waste management training and has also introduced women’s health programs at the existing Bengaluru plant.
Apple can cut labor costs in China, where its biggest contract manufacturer Foxconn makes a bulk of iPhones and iPads, by boosting local assembly or manufacturing in India.