Wistron makes local call to go beyond iphone

Partners Optiemus to manufacture mobile devices, IT hardware, and electric vehicles

Taiwanese giant Wistron is expanding its business to go beyond manufacturing mainly iphones in India following an agreement with Optiemus Electronics to make mobile devices, IT hardware and telecom products and is now exploring electric vehicles.

Wistron, a $30-billion original design manufacturer (ODM), is not new to the world of electric vehicles. Many years ago, it had teamed up with Chinese automaker NIO to make the electric control systems of cars.

Delhi-based Optiemus is eligible for incentives under the Indian government’s production-linked incentive (PLI) scheme for mobile devices and IT hardware. This is an advantage that Wistron could leverage to manufacture mass-priced products for its customers across the globe from India.

The strategic alliance will design and manufacture tablets, laptops, hearables, wearables, telecom products, Internet of Things/industrial Internet of Things, smart meters and automotive-electric vehicle products under contract manufacturing.

As part of the deal with Wistron, Optiemus will invest over ~1,350 crore over five years. It is aiming at a revenue of ~38,000 crore across all products. It will be working out details, initially on the revenue share and financial details of the alliance, with Wistron soon.

David Shen, president and CEO of Wistron Smart Devices, said: “We wanted an Indian partner to grow the business in the country. PLI will be a key enabler to bridge any gaps in developing the ecosystem for the next decade. It is time to extend our support to our

Indian partner as we embark on a wonderful and exciting journey.”

Wistron has a manufacturing plant exclusively for Apple in Karnataka and is among a clutch of global companies who are eligible for the PLI scheme. The others include Foxconn, Pegatron and Samsung. Wistron also manufactures some laptops for Xiaomi, Dell and Acer in India. Sources said Wistron invested ~1,250 crore between August 2020 and March this year, exceeding its commitment to the Indian government, under the PLI investment requirements, by around 25 per cent.

Unlike Foxconn (the world’s largest maker of the iphone), Wistron did not go in for two separate applications under the PLI scheme – one for Apple and the other for non-apple manufacturers. However, its agreement with Optiemus allows it to continue manufacturing for Apple.