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Apple supplier Wistron secures land to build new site in Karnataka: sources

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 southern state, two officials said, signalling what could be a vital 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, said the two officials, who asked not to be named as the deal is not public.

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

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 the Cupertino, California-based company'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.

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.

($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. 14:14 IST