Facing tighter import restrictions, Acer, Asus to set up massive manufacturing facilities in India

In response to India’s plan to tighten import regulations on laptops and boost its domestic tech industry, Taiwan’s Acer and Asustek, two of the world’s largest laptop manufacturers have revealed plans to ramp up manufacturing operations within the country this year. They also plan to set up massive manufacturing facilities according to a report in Nikkei Asia.

The report quotes people involved in both the companies that, both Acer and Asustek view local production in India as a strategic move for the long term. Acer’s Chairman, Jason Chen, highlighted India’s emergence as the company’s second-largest market in terms of shipments and revenue, following the United States.

Acer intends to accelerate the sales of consumer notebook computers within India this year, with discussions underway with Indian manufacturing partners, as well as Taiwanese suppliers, to increase local production. Chen emphasised the rapid growth of the Indian market, stressing its undeniable potential.

Similarly, Asustek Computer Co-CEO, Samson Hu, expressed the company’s proactive approach in collaborating with suppliers to meet the Indian government’s emphasis on local manufacturing. Hu disclosed Asustek’s plans to elevate India as a priority market for expanding its commercial notebook business, reflecting the company’s sustained efforts over the past two years in building its consumer notebook brand within the region.

Wistron, a prominent contract notebook manufacturer, also announced its strategic move to establish a maintenance and after-sales service centre in Karnataka, India, indicative of the company’s commitment to bolstering its presence in the Indian market. Wistron’s Chairman, Simon Lin, hinted at the possibility of future manufacturing lines for PC production at the newly acquired site.

These developments coincide with significant policy shifts in India, including the introduction of regulations last August aimed at requiring licenses for the import of various tech products, subsequently replaced by a new import management system. The country’s push for bolstering its tech supply chain aligns with global trends, particularly amidst China’s diminishing role as the world’s manufacturing hub.

India’s efforts to stimulate local tech production are not new, with initiatives like the production-linked incentive (PLI) program aimed at encouraging smartphone manufacturers to localize production. PLI 2.0, introduced last year, extends incentives to encompass a broader range of IT products, including notebooks and tablets. Analysts predict a positive impact from these policies, with Counterpoint Research forecasting a 9.3% increase in PC shipments within the Indian market in 2024, outpacing the global average.

As global players pivot towards India, the country’s tech industry stands poised for significant growth, fueled by a combination of regulatory support and market potential.

(With inputs from agencies)