No plans to manufacture in India in near future: Pegatron
Taiwan’s Pegatron Corp. ( ), a key supplier of Apple Inc.’s iPhones, said Monday that it has no plans to set up operations in India in the near future and follow its bigger rival Hon Hai Precision Industry Co. ( ) into the market.
Pegatron executives visited India a few years ago to see if it wanted to build a factory there, but conditions were different at the time and Pegatron decided to move its manufacturing sites to China, Chief Executive Jason Cheng told an earnings briefing.
The company has kept a close eye on the development of India’s fast-growing smartphone market and determined that manufacturing in the country would mainly target domestic demand, contributing less to export markets, and require “cooperation with clients,” Cheng said.
The CEO noted that there remain many things to consider about manufacturing in India, and the company “does not have any specific plans to share at present.”
Cheng’s remarks came two days after Hon Hai, known outside Taiwan as Foxconn Technology Group ( ) and a major supplier to Apple, signed a pact with India’s Maharashtra state to invest US$5 billion over five years on a new electronics manufacturing facility.
The announcement could help Foxconn, which also counts BlackBerry, Xiaomi ( ) and Amazon as clients, counter accelerating wage inflation in China and bolster Indian Prime Minister Narendra Modi’s “Make in India” campaign, which aims to turn Asia’s thirdlargest economy into a manufacturing powerhouse.