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Apple supplier Wistron secures land to build new site in Karnataka

Reuters  |  MUMBAI 

By Sankalp Phartiyal

MUMBAI (Reuters) - A unit of Apple Inc's Taiwanese has won approval from to build a new assembly facility in the south Indian state, signalling a potential expansion of assembly work in

The state government has approved Pvt Ltd's application for 43 acres of land, roughly 65 km (40 miles) from the tech hub of Bengaluru, according to a government document reviewed by

Wistron will invest 6.8 billion Indian rupees ($105 million) to develop this land and manufacture smartphones, internet of things (IOT) products and bio-tech devices, the document said.

Wistron, in its proposal to the state government, said the new plant will create about 6,000 jobs.

"When discussions started, their (Wistron's) requirement was 50-100 acres," a senior government told "But we were not immediately able to provide all the land."

The official, who declined to be named as discussions were not public, added the state had assured Wistron of meeting the company's land requirements.

The expansion of facility could mean a widening of Apple's assembly in as the U.S. has to pay steep duties on devices imported into the country.

Analysts see - one of the world's fastest-growing markets - as key to Apple's ambitions for a bigger global market share as sales have slowed in more mature markets.

Wistron's ICT unit currently assembles Apple's low-cost SE model in Bengaluru. Wistron also does work for a broad range of other

Apple and Wistron did not immediately respond to requests for comment.

Cupertino, Calif.-based Apple has, however, signalled its long-term commitment to Wistron's Indian operations. In a report on supplier responsibility progress earlier this month it said it provides waste management training and has also introduced women's health programmes at the existing

Boosting local assembly or will also help Apple cut escalating labour costs in China, where its biggest Hon Hai Precision Industry Co, widely known as Foxconn, makes a bulk of iPhones and

reported in January that Wistron was weeks away from finalising a land deal in Bengaluru and may soon begin assembly of another Apple model.

The new site at the Narasapura Industrial Area, is located 50 km away from the The site already houses the assembly operations of a number of firms like Honda Motorcycle and Scooter India, and

($1 = 64.9525 Indian rupees)

(Reporting by Sankalp Phartiyal; Editing by Euan Rocha & Shri Navaratnam)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 16:47 IST