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Taiwan tech companies look to India for expansion

Major local players like Asustek, Acer, and Foxconn are diversifying out of China

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India wants more tech manufacturing from Taiwan. (Taiwan News photo)

India wants more tech manufacturing from Taiwan. (Taiwan News photo)

TAIPEI (Taiwan News) — Taiwan is stepping up manufacturing in India as it cuts back on working with China and sets up production elsewhere.

Three major Taiwan-based computer makers told Nikkei Asia on Thursday (Feb. 8) that they were expanding manufacturing in India. The Japanese media outlet said this was a long-term trend.

It quoted Acer Chair Jason Chen (陳俊聖) as saying India had become the company’s second-largest market after the U.S. "The Indian market grows so fast that its potential can't be neglected.”

Chen added that Acer is in talks to increase production in India. Established in 1976, Acer is one of the world's biggest information and communication technology companies and has a presence in over 160 countries.

Acer is not alone. Asustek Computer Co. is also working "aggressively" with its suppliers to expand manufacturing in India, according to Co-CEO S.Y. Hsu (許先越). Asustek has a significant operation in China’s Suzhou but now sees India as a priority in its notebook business.

Meanwhile, Wistron Corp., the contract notebook manufacturer, has reportedly bought land in India for operations. It also recently sold off its Apple iPhone assembly factory in India to Tata, the Indian mega-company.

Foxconn, the world’s biggest manufacturer of iPhones, has also been investing heavily in India, according to Commonwealth Magazine. This is in line with its policy of avoiding over-investment in China and diversifying its manufacturing.

The magazine quoted a survey from the Center for Strategic and International Studies that showed more than 25% of Taiwanese companies working in China had already moved some of their production out of the country. Another 33% were said to be considering doing the same.