Taiwanese tech firms accelerate manufacturing in India; aiming to reduce over-reliance on China

Taiwanese manufacturers are increasingly turning to India for manufacturing, diversifying away and reducing over-reliance on China and reflecting broader industry trends.

Taiwan is intensifying its manufacturing presence in India as it reduces its reliance on China and explores production opportunities elsewhere.

According to three prominent Taiwan-based computer manufacturers interviewed by Nikkei Asia on Thursday, there is a noticeable uptick in manufacturing activities in India, reflecting a long-term trend in the industry.

Acer’s Chairman, Jason Chen, emphasized India’s growing significance as the company’s second-largest market after the U.S., stating that the potential of the Indian market cannot be ignored as it keeps on growing. Acer, established in 1976, stands as one of the world’s largest information and communication technology companies, operating in over 160 countries. Chen disclosed ongoing discussions to bolster production capacities in India, indicating a strategic shift in the company’s operational footprint.

Similarly, Asustek Computer Co., represented by Co-CEO S.Y. Hsu, is actively collaborating with suppliers to expand manufacturing operations in India. While Asustek maintains a substantial presence in China’s Suzhou region, India has emerged as a priority for its notebook business, underscoring the company’s commitment to diversifying its manufacturing base.

Meanwhile, reports suggest that Wistron Corp., a leading contract notebook manufacturer, has acquired land in India for its operations. Additionally, Wistron recently divested its Apple iPhone assembly facility in India to Tata, a prominent Indian conglomerate, indicative of the evolving dynamics in the region’s manufacturing landscape.

Foxconn, renowned as the world’s largest producer of iPhones, has also directed substantial investments towards India, aligning with its strategy to mitigate over-reliance on China and foster manufacturing diversification. This strategic shift reflects a broader trend observed in Taiwanese companies, as highlighted by a survey from the Center for Strategic and International Studies cited by Commonwealth Magazine. The survey indicates that over 25% of Taiwanese firms operating in China have already relocated some production activities out of the country, with an additional 33% contemplating similar moves.

The move towards India signifies not only a shift in manufacturing dynamics but also underscores the strategic imperatives driving Taiwanese companies to explore alternative production hubs. As global supply chain dynamics continue to evolve amidst geopolitical uncertainties, Taiwan’s pivot towards India underscores the resilience and adaptability of its manufacturing sector.