Another win for the country, as the Taiwanese laptop giant, Asus has announced its plans to relocate key component suppliers from its primary manufacturing hub in China to India giving a major boost to the Modi government’s Make-In-India initiative.
Asus Moving Its Suppliers From China To India
Not only that, now the technology major is collaborating with contract manufacturer Flex to establish a new factory in Chennai
This move will definitely help in capitalizing on the government’s revamped Rs 17,000-crore production-linked incentive (PLI) scheme for IT hardware.
Further, Asus aims to aggressively expand its production operations in India With a market valuation of $15 billion, hence relying on the government’s PLI scheme.
This move comes with the anticipated rapid growth in demand within the Indian market, when China, the United States, and major Western markets are facing economic slowdowns.
Expansion Creating More Opportunities
“Asus is one of the fastest-growing notebook brands in India, and we will now expand our product line-up and business operations here in line with the growing scale of business as well as market potential,” said Peter Chang, the general manager for Asus’ Asia Pacific System Business Unit, while affirming the company’s commitment to India.
Asus sources nearly 80% of its production from China presently and the remaining portion originating from Taiwan, Brazil, Europe, and Indonesia.
In Chang’s vision, India will become the second or third-largest manufacturing site globally for Asus in the coming years, obviously driven by the expansion facilitated by the PLI scheme.
Asus is known for its gaming laptops in India at present.
The Taiwanese technology giant has diversified its product portfolio and currently holds an 18% share in the consumer notebook market, along with around a 5% share in commercial notebooks and consumer desktops.
Besides this, the company has also expanded its reach from online channels to offline retail.
Moving ahead, Chang expressed his confidence in the revamped PLI scheme for IT hardware, further highlighting the investment and localization milestones it mandates.
It appears that Asus is actively scouting for local vendors to supply crucial components like PCB (printed circuit board), memory units, and chassis, both within India and among its existing suppliers in China, Taiwan, and Korea.
