Wistron to start assembly of key iPhone component in India soon
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Wistron Corp, Taiwan's phone assembler has announced plans to assemble PCBs or printed circuit boards at its new plant in South India.
Apple is pushing to increase manufacturing in India, which is the world's second-largest smartphone market.
Earlier, Wistron had assembled and manufactured Apple's middle-tier device called the ''SE'' in 2017. Currently, iPhones 6s and 7 are also assembled there.
This is the first assembly of PCBs by Wistron in India.
A PCB holds the key components of a phone, including processors, memory, wireless chipsets, which remain at the centre of an electronic device.
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The PCBs usually account for half of the cost of a smartphone.
Wistron is set to open another facility 65 kms out of Bengaluru, which shall become operational by April. The plant will make iPhone 7 and 8 models, with much of it being exported.
Reuters reported that the facility can produce 8 million smartphones annually.
In 2018, Wistron had announced plans for a 30 billion rupee investment in Karnataka.
Foxconn, Wistron's rival began making iPhone XR models in India last year, with PCB assembly happening locally.
The local assembly of PCBs will help Apple save on import taxes on smartphone components, which is levied by the central government to boost local manufacturing.
In the yearly budget, India announced that the taxing import on PCBs will increase to 20 per cent, from an earlier ten.
Apple still makes most iPhones in China but has been scouting other locations amidst the trade war between US and China.
India boasts 1.1 billion wireless connections, with about 480 million smartphones in the country. However, Apple's share based on shipment volumes is just over one per cent.