New Delhi: In a major development in electronics manufacturing, a $30 billion Taiwanese global contract supplier Python Announced a strategic partnership with domestic Optimus Electronics to manufacture mobile phones, wearables and wearables, IT hardware and laptops, 5G components and electric vehicle parts.
This is the second call for Wistron and Optimus, and the companies said they will engage in joint product development and business acquisition, engineering capabilities, software and firmware development, while creating new jobs in the electronics sector.
Wistron and Optimus said the current relationship – which will see the local partner employ 11,000 new workers at its factories in Noida – is “strategic” in nature, and can be extended to equity partnerships and a joint venture if the need arises in the future. it occurs.
“We will start on a strong foundation. We can leverage India’s engineering and software capabilities to create valuable solutions for local and international markets,” said David Shen, Global President and CEO of Wistron’s Smart Devices business.
The relationship is synergistic as both companies have benefited under the government’s ambitious Production-Linked Incentive (PLI) scheme for electronics manufacturing, but at different price points.
In mobile phones, while Wistron would receive a manufacturing advantage — between 6% and 4% over a five-year period — for devices priced more than $200, Optimus would receive local companies for devices costing less than $200. Reserved prize.
“We need a local touch. We see India as a big value market, and we need a local partner. I am excited about this partnership with Optimus and the potential opportunities ahead. With synergies, we can create better business opportunities in the future,” said Shen.
A Guruj, managing director of Optimus (who previously also headed Wistron’s India operations), said the companies will have a deeper engagement not only in manufacturing, but also in product development and business acquisition.
“Wistron wants to increase its footprint in India, Optimus wants to leverage government initiatives… so coming together from a win-win approach makes sense.”
Wistron first entered India in 2015 by buying a minority equity stake in Optimus, which assembles devices for brands including Taiwan’s HTC and South Korea’s LG. Wistron has since sold its equity back to Optimus.
In 2017, Taiwanese chief also started assembling iphone And gradually the operations expanded to a very large factory in the Narasapura industrial area of Karnataka. However, it faced a major workers’ discontent over unpaid wages, which also led to a riot at the Naraspura factory late last year.
Optimus Chairman Ashok Gupta said the company will invest over Rs 1,350 crore in the next 3-5 years as it is expected to reach a business of Rs 38,000 crore in the same period, mainly on account of PLI commitments.
“Optimus currently has two manufacturing factories in Noida with a combined manufacturing capacity of around two million devices per month. With the Wistron alliance, we will be able to offer Taiwanese technology at optimized cost and PLI sharing under one roof. Through this partnership, Optimus and Wistron will jointly explore the possibilities of catering to both domestic and overseas customers through Optimus’s manufacturing facilities,” said Gupta.
This is the second call for Wistron and Optimus, and the companies said they will engage in joint product development and business acquisition, engineering capabilities, software and firmware development, while creating new jobs in the electronics sector.
Wistron and Optimus said the current relationship – which will see the local partner employ 11,000 new workers at its factories in Noida – is “strategic” in nature, and can be extended to equity partnerships and a joint venture if the need arises in the future. it occurs.
“We will start on a strong foundation. We can leverage India’s engineering and software capabilities to create valuable solutions for local and international markets,” said David Shen, Global President and CEO of Wistron’s Smart Devices business.
The relationship is synergistic as both companies have benefited under the government’s ambitious Production-Linked Incentive (PLI) scheme for electronics manufacturing, but at different price points.
In mobile phones, while Wistron would receive a manufacturing advantage — between 6% and 4% over a five-year period — for devices priced more than $200, Optimus would receive local companies for devices costing less than $200. Reserved prize.
“We need a local touch. We see India as a big value market, and we need a local partner. I am excited about this partnership with Optimus and the potential opportunities ahead. With synergies, we can create better business opportunities in the future,” said Shen.
A Guruj, managing director of Optimus (who previously also headed Wistron’s India operations), said the companies will have a deeper engagement not only in manufacturing, but also in product development and business acquisition.
“Wistron wants to increase its footprint in India, Optimus wants to leverage government initiatives… so coming together from a win-win approach makes sense.”
Wistron first entered India in 2015 by buying a minority equity stake in Optimus, which assembles devices for brands including Taiwan’s HTC and South Korea’s LG. Wistron has since sold its equity back to Optimus.
In 2017, Taiwanese chief also started assembling iphone And gradually the operations expanded to a very large factory in the Narasapura industrial area of Karnataka. However, it faced a major workers’ discontent over unpaid wages, which also led to a riot at the Naraspura factory late last year.
Optimus Chairman Ashok Gupta said the company will invest over Rs 1,350 crore in the next 3-5 years as it is expected to reach a business of Rs 38,000 crore in the same period, mainly on account of PLI commitments.
“Optimus currently has two manufacturing factories in Noida with a combined manufacturing capacity of around two million devices per month. With the Wistron alliance, we will be able to offer Taiwanese technology at optimized cost and PLI sharing under one roof. Through this partnership, Optimus and Wistron will jointly explore the possibilities of catering to both domestic and overseas customers through Optimus’s manufacturing facilities,” said Gupta.
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