Wistron Factory Fiasco: What This Means for Apple's Contractors Making iPhones in India
News 18Earlier this month, a fiasco broke out at Wistron’s manufacturing facility in Narasapura. Both the manufacturing majors, along with the troubled Wistron, are among 16 companies that have been nominated in the Indian government’s production-linked incentive scheme that seeks to boost India’s manufacturing sector. As part of its long term efforts, Wistron has promised an investment of Rs 2,900 crore to set up manufacturing facilities in India, and a chunk of this investment will go into specialised equipment that is required for specialised engineering tasks required for making Apple’s iPhones. The two also have manufacturing chain capacity limitations right now, and while Foxconn already manufactures the iPhone XR and iPhone 11 – two of Apple’s most popularly selling iPhones in India right now, it may not have the immediate capacity that would be required to compensate if Wistron’s facilities are taken out of the equation. This will be key to India’s goal of having the electronics manufacturing sector contribute up to 20 percent of India’s economy by 2025, and help prevent fiascos such as the Wistron factory vandalisation from occurring.