iPhone assembler Wistron acquires 43 acres for smartphone unit

Taiwanese contract manufacturer Wistron has acquired 43 acres of land on the outskirts of Bengaluru to set up its second integrated manufacturing facility for smartphones.

 

The unit, which will attract an investment of Rs 7-8 billion, will be constructed in Devanahalli which is around 40 kilometers from the capital city. Wistron's first unit is currently being used to assemble Apple's low-cost iPhone SE smartphone, its first locally manufactured device in India.

 

Wistron has proposed bringing in other Taiwanese manufacturers. It will try to replicate the entire smartphone manufacturing ecosystem at its new unit. The company’s proposal also includes creation of employment opportunity for around 8,000 people in the next three to four years.

 

Karnataka information and technology minister Priyank Kharge confirmed the development and said that while the land has been allocated, the price was under negotiation.

 

“It’s a start. They are looking at bringing a consortium of Taiwanese manufacturers and replicating the entire ecosystem,” he said.

 

It is not clear whether Wistron will utilise the new unit to manufacture upcoming models of Apple’s iPhone.

 

The company’s first unit is underutilised as sales of the locally-assembled iPhone SE have failed to kick off in a big way. Analysts peg sales of the device at 25,000 units a month.

 

“Two weeks after they put in their application we cleared the allocation of the land. Because of our proactiveness in the state, they’re willing to collaborate on other fronts as well. They want to set-up an innovation corridor and a medical device corridor,” added Kharge.

 

Business Standard had first reported on January 8 that Wistron was looking to acquire 100 acres of land at the Taiwanese electronics manufacturing cluster in

 

Devanahalli. While the company has been alloted 43 acres, Kharge said the deal could be revisited as Wistron’s requirements grow.