As India considers stricter import controls to empower local tech, two leading global PC manufacturers, Acer and Asustek, plan to enhance their manufacturing operations in the country this year.
What Happened: Both Taiwanese companies view local production in India as a long-term strategy. Acer Chairman, Jason Chen, has described India as the firm’s second-largest market by shipments and revenue after the U.S., and plans to boost sales of consumer notebook computers there this year, Nikkei Asia on Wednesday reported.
Asustek Co-CEO, Samson Hu, echoed this sentiment, stating the company is actively planning to request more component-level production in India as a part of their strategic response to the Indian government’s push for more local manufacturing.
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Another company, Wistron, has acquired a plot in Karnataka, India, intending to establish a maintenance and after-sales service centre for its notebook business. Wistron Chairman, Simon Lin, didn’t dismiss the possibility of turning this facility into manufacturing lines for making PCs in the future.
Why It Matters: This potential shift in manufacturing strategy comes in response to the Indian government’s “Make In India” initiative, which was introduced to stimulate local tech production. This initiative also includes a production-linked incentive program encouraging smartphone manufacturers to build locally, providing rewards for increased output.
Prachir Singh, senior analyst at Counterpoint Research, suggests the Indian government’s desire to increase local manufacturing of IT products may lead to a positive impact, similar to the boost seen with the mobile phone PLI scheme.
India has been a focus of global tech companies’ manufacturing strategies in recent years. Google announced plans to start producing its Pixel smartphones in India by 2024. Walmart also embraced the ‘Make in India’ initiative by introducing Indian-made bicycles in its U.S. stores.
Furthermore, Apple’s production figures in India hit a record ₹1 lakh crore milestone last year, with iPhones worth over ₹65,000 crore being exported.
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Image: Shutterstock/ Kirkam
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