Indian state officials say Wistron will invest in Telangana in 2023

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Officials from the information, electronics and communications technology (ITE&C) department of the Indian state of Telangana told DIGTIMES Asia that electronics manufacturing services (EMS) giant Wistron Corp has decided to to invest in Telangana to produce products related to consumer electronics and electric vehicles (EV).

“They will engage in product manufacturing in the sense of primarily consumer electronics and electric vehicle-related products with some of the existing customers and probably new customers,” said Sujai Karampuri, director of electronics division of ‘ITE&C. “Details will be finalized in January 2023.”

A spokesperson for Wistron declined to comment on the matter.

Karampuri and his colleagues came to Taipei to meet with Wistron executives and 32 supplier partners on September 1, to brief them on Telangana’s investment environment and answer any questions they may have about investing in India. “So basically the idea is that it’s not just Wistron but its suppliers also have to be satisfied in India,” said Karampuri, who pointed out that Wistron will set up manufacturing units for the consumer electronics and electric vehicles in Hyderabad.

“Several locations are offered for them around the city ring road, one park in the north of Hyderabad and the other in the south,” said Aaditya K, co-director of electronics, electric vehicles and ESS at ITE&C.

Wistron already has a production center in Bengaluru, in the state of Karnataka adjacent to Telangana. In addition to producing iPhones for Apple, Wistron has also collaborated with local companies such as Optiemus Infracom to produce consumer electronic gadgets, according to Jingyue Hsiao, editor-in-chief of DIGITIMES Asia.

The Telangana state government will not only provide capital grants, but also subsidies for electricity, water and transport to attract foreign direct investment (FDI), according to Karampuri. “We also offer employee-related incentives, which means if you are a company, which creates a lot of labor, part of the labor salary is actually paid as a subsidy of the state.”

According to the ICT policy developed by the Telangana State Government for 2021-26, the target is to create around 350,000 jobs in the electronics and electric vehicle manufacturing sectors and attract 30 billion dollars of investments over the next five years.

“Telangana has one of the best infrastructure among the states of India, and many American tech giants such as Google, Amazon, Apple and Microsoft have all set up R&D centers in Hyderabad, the capital and the largest city in the state,” Dhananjay Singh Yadav, deputy general manager of the India Taipei Association, told DIGTIMES on the sidelines of Wistron’s supplier briefing.

Telangana was separated from Andhra Pradesh and became an independent state in 2014. “Over the past eight years, we have more than doubled our GDP. past eight years.And our power, we have increased our electrical capacity by 4.5 times, and we have increased our water and irrigation by leaps and bounds with the success of building the largest lift irrigation project in the world , a US$15 billion program to create reservoirs in infrastructure,” Karampuri said. “In the state, we are the first state in the country to provide tap water to every home – 100% tap water connected. In a country like India, this was unthinkable just a few years ago.”

“Hyderabad has created a third of the jobs (in the IT sector) in India,” said Karampuri, “As a single state, we only represent 2.5% of the population, but we contribute 5.5% of the GDP of the country of India.”

“We would like to become the Shenzhen of India,” Karampuri said, adding that Telangana is aiming high because its vision is for people to choose between Shenzhen or Hyderabad when deciding to find someone to manufacture for them.

Telangana has already snatched India’s first AMOLED display manufacturing project, as Bengaluru-based Rajesh Exports has announced it is investing Rs 24,000 crore in the project, through its subsidiary Elest Private. In terms of semiconductors, besides packaging and testing, Telangana targets semiconductor manufacturers who manufacture silicon carbide, gallium nitride, power electronics and analog semiconductor chips, Karampuri said.

Other areas Karamputri would like to attract investment to Telangana include precision engineering, mechanical tooling, plastic injection molding, SMT lines to create EMS to be channeled into many sectors such as electronics General public. And consumer electronics includes computer peripherals, smartphones, gadgets, sports technology, networking equipment like communications, 5G and 4G, and medical devices. It also targets the electric vehicle sector – automotive electronics, vehicle manufacturing, transmission powertrain, battery management systems, as well as energy storage solutions, such as cell manufacturing.

India has become a popular investment destination for supply chain manufacturers looking to diversify their production lines from China. DIGITIMES Asia previously reported that lockdown measures were being imposed in several Chinese cities due to a resurgence of COVID outbreaks locally, US brand suppliers have asked their laptop assemblers and related suppliers to expedite the pace of their relocation of production.

According to the 2022 US-China Business Council (USCBC) Member Survey released in late August, 24% of respondents said they had relocated segments of their supply chains out of China to America or locations, up 10 percentage points from the 2021 survey.

Telangana State Government ITE&C Department Officials: SK Sharma (left to right), Director of Electronics Sujai Karampuri and Co-Director Aaditya K.
Photo: DIGITIMES Asia, September 2022


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