Dell, Foxconn sign up for Indian servers-and-PCs manufacturing subsidies

India wanted five global players. And it got only five applications from qualifying companies


India has met its target to lure five global server, PC, and tablet computer manufacturers to its shores, but in a slightly unusual way.

A "Production Linked Incentive Scheme" announced in February 2021 set a goal of five "major global players" willing to set up shop in India in return for a shared pool of subsidies worth up to $1bn that will be paid over four years. Ten Indian operators were also sought and are eligible for the payments.

India's government yesterday revealed that four offshore companies have applied to participate in the scheme, namely Dell, ICT (Wistron), Flextronics, and Foxconn offshoot Rising Stars Hi-Tech.

Dell and Foxconn need no introduction. Wistron and Flextronics are less well-known contract manufacturers, but both regularly supply top-tier tech brands.

Indian manufacturing contractor Lava was also named alongside the four abovementioned companies. Lava has won global clients for smartphones and other devices so fits the criteria even if its inclusion doesn't mean India can brag that a big offshore brand wants to work on its soil.

Shri Ravi Shankar Prasad, Minister for Electronics & IT, Communications, Law and Justice, nonetheless declared the process a great success as India pursues its goal of increasing self-sufficiency and, eventually, the creation of businesses that turn the nation into an exporter of electronics.

He was perhaps right to do so considering the 14 applications received from local players, more than the target of 10.

India's tech industry received another boost yesterday after a UK-India virtual summit saw the two nations launch an "Enhanced Trade Partnership" that incudes a plan to "enhance cooperation on new and emerging technologies, including Digital and ICT products, and work on supply chain resilience." Among the immediate results of the new pact are a pledge by Infosys to hire 1,000 workers in the UK over the next three years.

The Register notes that Infosys's Q4 2021 earnings announcement mentioned a plan to hire 26,000 people across the world in FY 2022 alone. The company also reported total Q4 2021 headcount of 242,000 and staff attrition of 15 per cent. 333 jobs a year for three years in the UK is therefore not a massive investment for the company. ®

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