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India confirms subsidies for Apple supplier Foxconn, Lenovo and 25 other tech hardware firms, bolstering country’s electronics supply chain ambitions
- New Delhi has approved applications for subsidies of 27 tech hardware manufacturers under the country’s Production Linked Incentive scheme
- India expects the PLI-approved companies to directly create 50,000 jobs and indirectly, about 150,000 more jobs under the scheme
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Iris Dengin Shenzhen
India will provide subsidies to some of the world’s biggest tech hardware companies, including Apple supplier Foxconn Technology Group and computer giant Lenovo Group, under a scheme to boost domestic manufacturing and strengthen the South Asian country’s bid to become a major hub in the global electronics supply chain.
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New Delhi has approved applications for subsidies of 27 companies, which also include Dell, HP and AsusTek Computer, under the country’s Production Linked Incentive (PLI) scheme covering domestic assembly of desktop and laptop personal computers (PCs), tablets and other tech hardware, according to an official statement on Saturday.
“Twenty-three out of 27 approved applicants are ready to start manufacturing on day zero,” said Ashwini Vaishnaw, India’s Minister for Railways, Communications, Electronics and Information Technology. “Four companies will start production in the next 90 days.”
Meanwhile, Apple contract manufacturer Luxshare Precision Industry Co has denied reports it walked away from a US$330 million deal in India, asserting that the company has “never made such an investment decision”, the Shenzhen-listed firm said on Monday in response to a question raised on the bourse’s investor platform.
India expects the PLI-approved companies to directly create 50,000 jobs and indirectly, about 150,000 more jobs under the scheme, based on a total investment of US$360 million, according to the government’s statement. It said the estimated value of information technology hardware production would reach US$42 billion.
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The new subsidy approvals followed last year’s earlier PLI phase for smartphone manufacturing, which provided government incentives to the Indian unit of Taiwanese firm Foxconn, formally known as Hon Hai Precision Industry.
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