What you need to know
- Wistron currently builds some iPhones in India.
- The company will reportedly start manufacturing PCBs, too.
- This as Indian import tax on PCBs is about to be doubled.
Apple supplier Wistron will begin manufacturing its own printed circuit boards (PCBs) for use in iPhones according to a report by Reuters.
Wistron currently builds iPhone SE, iPhone 6S, and iPhone 7 models in the country and will reportedly start producing its own PCBs locally as well. That's likely because there is a new doubling of PCB import tax on the way.
The deepening of PCB assembly in India will help Cupertino, Calif.-based Apple save on import taxes on smartphone components, levied by Prime Minister Narendra Modi's government to boost local manufacturing and create new jobs.On Saturday, India said in its federal budget that it will from April begin taxing imports of populated PCBs at a higher 20%, from the previous rate of 10%.
Fellow supplier Foxconn already makes its own PCBs in India, so it won't be faced with the same tax burden come April.
The report notes that neither Apple nor Wistron commented on the speculation, but it makes tons of sense on both sides. Not only does Wistron not have to deal with the new 20% tax in PCB imports, but it also continues Apple's attempts to diversify its manufacturing options around the globe.
