Wistron, a Taiwanese contract manufacturer, has signed a memorandum of understanding (MoU) with the Karnataka government to set up a laptop manufacturing unit in the state. The project will involve an investment of Rs 1,500 crore and will create around 3,000 jobs. The company plans to start operations by July 2024 and begin laptop production by January 2026.
Wistron to make laptops for various brands, export 50% of output
Wistron is one of the world’s largest contract manufacturers of electronic devices, and has clients such as Apple, Dell, HP, Lenovo, and Acer. The company already has a presence in India, with a smartphone manufacturing plant in Kolar, Karnataka, and an IT hardware manufacturing plant in Narasapura, Karnataka.
The proposed laptop manufacturing unit will be set up in the vicinity of Bengaluru, and will have a capacity to produce 2.5 million laptops per year. The company will make laptops for various brands, and will export more than 50% of its output to other countries.
The project will also involve the production of Internet of Things (IoT) components and electric vehicle (EV) parts, as part of the company’s diversification and innovation strategy.
Wistron to boost Karnataka’s electronics manufacturing sector, generate employment
The MoU was signed on Wednesday by Wistron’s senior vice president David Shen and Karnataka’s large and medium industries minister M B Patil, in the presence of chief minister Basavaraj Bommai and other officials. The Karnataka government has agreed to provide 32 acres of land for the project, and will also extend various incentives and concessions under its industrial policy.
The project is expected to boost Karnataka’s electronics manufacturing sector, which is already home to several global and domestic players. The state aims to become a hub for advanced manufacturing and technological innovation, and attract more investments and talent in the field.
The project will also generate employment opportunities for around 3,000 people, mostly from the local area. The company will provide training and skill development programs for the workers, and will also collaborate with educational institutions and industry associations for talent acquisition and retention.
Wistron to benefit from India’s IT hardware production scheme, market potential
Wistron’s laptop manufacturing project will also benefit from the government of India’s Production Linked Incentive (PLI) scheme for IT hardware, which was launched in November 2023. The scheme offers incentives of 1% to 4% on incremental sales of IT hardware products such as laptops, tablets, all-in-one PCs, and servers, for a period of four years.
The scheme aims to promote domestic manufacturing and reduce imports of IT hardware products, which are currently valued at around $100 billion per year. The scheme also aims to enhance India’s exports of IT hardware products, which are currently valued at around $1 billion per year.
Wistron will also benefit from the growing demand and potential of the Indian laptop market, which is expected to grow at a compound annual growth rate (CAGR) of 15.7% from 2020 to 2025, according to a report by Research and Markets. The report cites factors such as the increasing adoption of laptops for work, education, entertainment, and gaming, as well as the government’s initiatives to promote digital literacy and connectivity, as the drivers of the market growth.