New Delhi: After over fifteen years of doing business in India, Taiwanese electronics company Wistron is reportedly set to wind down its operations in the country. According to a report, the company is planning to withdraw from India by approaching the Registrar of Companies and National Company Law Tribunal to dissolve its India operations within the next year.
Wistron’s iPhone manufacturing facilities in Karnataka, which constitute the largest portion of its overall business in India, will be taken over by Tata Electronics, as reported last month. The South Indian facility accounted for a substantial portion of iPhone production in India, but Wistron had also planned to expand production in the Internet of Things and electric vehicle space.
With the Tata Electronics takeover of the Karnataka facility, Wistron’s services business for the repair and maintenance of Apple products will be the only operation that will continue in India. The winding down process can start once the takeover is complete.
In 2008, Wistron’s first India subsidiary was incorporated as a sales and maintenance service center called “ICT Service Management Solutions (India) Private Limited.” The company’s Bangalore facility, spanning 44 acres, has eight assembly lines and currently manufactures iPhone 12 and iPhone 14 models. Wistron is one of three Taiwanese iPhone manufacturers in India, along with Pegatron Corp and Foxconn. However, Foxconn owns the majority of the manufacturing of Apple iPhones in India.
It is unclear why Wistron has decided to wind down its operations in India. However, it is worth noting that the company faced controversy in December 2020 when workers at its Karnataka facility rioted over alleged non-payment of wages and poor working conditions. This incident led to a temporary suspension of Wistron’s operations in the facility and an investigation by the local government.
In conclusion, Wistron’s decision to wind down its operations in India after over fifteen years of doing business is significant news for the Indian electronics industry. With the company’s iPhone manufacturing facilities in Karnataka being taken over by Tata Electronics, it remains to be seen how this will impact the industry and the Indian economy as a whole.