‘IPhone contract manufacturer to make components later’

Taiwan’s Wistron, a contract manufacturer of Apple iPhones in India, plans to invest ₹1,150 crore in Karnataka during the first phase of operations, said Gaurav Gupta, Principal Secretary, Information Technology, Bio-Technology and Science and Technology to the State government.

Apple seeking tax breaks

“They will progressively manufacture components in Phase II and Phase III,” Mr. Gupta said during an interaction with The Hindu.

“Apple is not directly investing and has given the contract to Wistron. Apple is demanding tax concessions and incentives from the State government.

“There is a long wish-list. As far as the import duties are concerned it is in the court of the Government of India. The Ministry of Electronics and Information Technology, the Department of Revenue and other ministries will have to take a call,” Mr. Gupta said.

The Union Government does not want to reduce the duties on components as it will hurt domestic products, he said. Wistron’s rival Foxconn has announced plans to invest $5 billion in Maharashtra.

Apple was testing the waters to see if the State had a robust manufacturing and export ecosystem, Mr. Gupta said. “We are engaging with them for the last two years; Wistron has already started” operations in a restricted manner in Bengaluru and had upgraded to a new facility, he added.

Other investment proposals including one from Boeing Co. to make aerospace components and set up a maintenance and repair facility at the aerospace SEZ near the Devanahalli airport had been approved by the State government, Mr. Gupta said.

“We are also exploring a plan by Virgin Hyperloop One,” he said, without elaborating.