Smartphone giant Apple’s top three contract manufacturers are planning to invest a total of almost $900 million (approximately Rs. 6,630 crores) in India in the next five years to tap into a new production-linked incentive plan, according to reports.
Foxconn, Wistron, and Pegatron all plan to make investments under the scheme. As of now, these discussions are private.
India’s new $6.65 billion (approximately Rs. 48,997 crores) production-linked incentive (PLI) scheme offers companies cash incentives on any increase in sales of locally-made smartphones over the next five years, compared with 2019-20 levels. The scheme aims to help transform India into an export manufacturing hub.
According to reports, Foxconn has applied to invest about Rs. 4,000 crores, while Wistron and Pegatron have committed to invest close to Rs. 1,300 crores and Rs. 1,200 crores, respectively. It is possible that vast majority of these investments would be focused on expanding iPhone manufacturing in the country. While Foxconn, Pegatron, and Wistron make devices for companies other than Apple globally, Wistron’s arm in India currently assembles only iPhones.
Wistron, which assembles close to 200,000 second-generation iPhone SEs per month in India, plans to scale that up to 400,000 a month by the end of the year. That plan is expected to create roughly 10,000 jobs. Pegatron is yet to start Indian operations, but has been in talks with several states, including Tamil Nadu which is emerging as a frontrunner for a planned plant to manufacture Apple devices. Foxconn already assembles devices for Xiaomi in India, and has enough capacity to use the PLI plan and boost iPhone production in the country.