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992 - Lenovo News Story

HK$5 -0.2  -3.9%

Last Trade - 25/09/20

Sector
Technology
Size
Large Cap
Market Cap £6.08bn
Enterprise Value £8.52bn
Revenue £40.44bn
Position in Universe 211th / 6001

UPDATE 1-Apple's Taiwan suppliers, Samsung apply for India's smartphone scheme

Sat 1st August, 2020 11:11am
(Updates to add detail, context)
    By Sankalp Phartiyal
    NEW DELHI, Aug 1 (Reuters) - Apple Inc's  AAPL.O  Taiwan
contract manufacturers Foxconn  2317.TW , Wistron Corp  3231.TW 
and Pegatron Corp  4938.TW  have applied for India's $6.65
billion scheme to boost local smartphone manufacturing, the
country's tech minister said on Saturday.
    The production-linked incentive (PLI) plan offers companies
cash incentives on additional sales of devices made locally over
five years, with 2019-2020 as the base year. India hopes it will
help turn the country into a global smartphone export hub like
neighbouring China.  urn:newsml:reuters.com:*:nL4N2DF2RY
    Apple already assembles some its smartphones, including the
iPhone 11, via Foxconn and Wistron's local unit in two southern
Indian states.
    Pegatron, one of Apple's top suppliers, has yet to open a
plant in India, but is in talks with various states to set up 
operations, according to sources.
    South Korea's Samsung Electronics Co Ltd  005930.KS  has
also applied for PLIs, technology minister Ravi Shankar Prasad
told a news conference.
    Samsung runs what it calls the world's biggest mobile phone
manufacturing plant on the outskirts of the Indian capital, New
Delhi. It also exports devices made at the plant.
    Lava, which once also assembled some models for China's
Lenovo  0992.HK , was among the Indian companies which had
applied for the scheme, Prasad added. 
    India's smartphone sector is a bright spot in the South
Asian nation's economy, thanks to Prime Minister Narendra Modi's
emphasis on local manufacturing in a bid to create jobs.
    With more than 1 billion wireless subscribers and roughly
350 million users still on basic phones, India offers huge room
for growth to smartphone makers.
    Its labour, which is cheaper than China's, also allows
companies to produce or assemble at lower costs.
    And companies are ramping up. 
    Foxconn said it plans to invest up to $1 billion to expand a
factory in Tamil Nadu state where it assembles iPhones, sources
told Reuters last month. urn:newsml:reuters.com:*:nL4N2EH301

 (Reporting by Sankalp Phartiyal; Editing by Kim Coghill)
 ((sankalp.phartiyal@thomsonreuters.com; +91-11-49548064;))
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