Electronics assembler Wistron plans to expand despite world economic volatility
TAIPEI, NNA - Apple assembler Wistron Corp. will more than double its original equipment investment at an Indian subsidiary to boost capacity ahead of an expected boom in demand, the company said last week.
This investment is not the only one planned by the Taiwanese manufacturer in 2020. Despite a lockdown in India and global economic volatility due to the Covid-19 outbreak, Wistron expects longer-term growth.
Wistron InfoComm Manufacturing (India) Pvt. Ltd., its subsidiary, has stopped work due to the Indian government’s 21-day lockdown. The lockdown is aimed at controlling Covid-19 cases.
But the company expects growth from India in the longer term. “Our India base currently contributes not so much, compared to other operations that were established earlier, in terms of productions and revenue,” an official told NNA Friday. India offers a “large internal market as well as exports from there to the world,” the official said.
Wistron makes handsets including iPhones as well as internet-of-things hardware and high-tech medical devices at the Indian subsidiary, according to local media China Times. The latest proposed investment there is $76 million, the company said in a legal notice last Tuesday to the Taiwan stock exchange.
Despite a volatile world economy amid the virus outbreak, Wistron forecasts an upbeat 2020, Chairman Simon Lin told an investors’ conference Wednesday in Taipei, according to the report.
Sales of its Wistron-assembled laptops, servers, monitors and smartphones are expected to grow this year, he was quoted saying. The global virus outbreak will contribute to that demand as people work away from their offices, he expects.
“Demand for products required to realize remote work such as laptop computers, cloud servers and smart devices are expected to grow,” Lin said in the report.
Wistron expects shipments to rebound in the second quarter after a dip in the first followed by more stability in the third, he said.
Wistron has also approved capital injections at subsidiaries in China and the United States to boost production capacity, the company said in legal notices to the Taiwan Stock Exchange.
It plans to spend $46.8 million on its U.S. operation, Wistron InfoComm Technology (Texas) Corp., and allocate another $68.05 million to its China subsidiary Wistron InfoComm Technology Kunshan Co. for acquiring equipment, the legal notices said.
Wistron’s capital investment from this year through 2021 will total $1 billion, Lin said in the report.
The company expects production outside China reach 20 to 25 percent (of its world total this year and account for 50 percent in 2021, Lin said in the news report.
Full-year profit after tax totaled the equivalent of $224 million in 2019, a 38.6 percent growth from a year earlier, a financial statement shows.