The Taiwanese electronics company, Wistron, is reportedly planning to withdraw from India after over 15 years of doing business in the country. As per a report by BusinessLine, Wistron will likely approach the National Company Law Tribunal and the Registrar of Companies to dissolve its India operations within the next year.
This move comes after Wistron’s iPhone manufacturing facilities in Karnataka were taken over by Tata Electronics last month. Wistron’s Karnataka facility constitutes the largest portion of its overall business in India and currently employs 12,000 people.
Wistron’s plans for IoT and EV space
Apart from the South Indian facility which accounted for a substantial portion of iPhone production in India, Wistron had plans for the Internet of Things (IoT) and expanding production in the electric vehicle (EV) space. However, the company will now wind down all its operations except the services business for the repair and maintenance of Apple products.
Tata Electronics takeover and Wistron’s history in India
Wistron’s first India subsidiary was incorporated in 2008 as a sales and maintenance service center called “ICT Service Management Solutions (India) Private Limited.” The 44-acre Bangalore facility of Wistron has eight assembly lines and currently manufactures iPhone 14 and iPhone 12 models. Wistron is one of three Taiwanese iPhone manufacturers in India, along with Foxconn and Pegatron Corp. While Foxconn owns the lion’s share in the manufacturing of Apple iPhones in India, Wistron’s Karnataka facility played a significant role in iPhone production.
Impact of Wistron’s Exit on Indian Manufacturing
The news of Wistron’s exit is a setback to India’s manufacturing sector, which has been trying to become self-reliant and attract foreign companies to invest in the country. The exit of a prominent company like Wistron, which has been in the country for over 15 years, raises questions about the ease of doing business in India and the government’s commitment to the Make in India initiative.
Overall, Wistron’s withdrawal from India is a significant development in the country’s electronics manufacturing landscape. While the company will continue its services business in India, the closure of its other operations will have an impact on local employment and the Indian manufacturing industry as a whole.
