Asus boosts Make-In-India with key manufacturing shift from China to India

  • Industry News
  • Sep 21,23
With a market valuation of $15 billion, Asus is aggressively expanding its production operations in India, leveraging the government's PLI scheme.
Asus boosts Make-In-India with key manufacturing shift from China to India

In a significant boost to the Make-In-India initiative by the Modi government, Taiwanese laptop giant Asus has unveiled plans to shift critical component suppliers from its primary manufacturing base in China to India. In partnership with contract manufacturer Flex, the company is set to establish a new factory in Chennai, capitalising on the Indian government's revamped production-linked incentive (PLI) scheme worth Rs 17,000 crore for IT hardware.

With a market valuation of $15 billion, Asus is aggressively expanding its production operations in India, leveraging the government's PLI scheme. This strategic move comes as the company anticipates robust growth in demand within the Indian market, even amidst economic slowdowns in China, the United States, and major Western markets.

Peter Chang, General Manager of Asus' Asia Pacific System Business Unit, affirmed the company's commitment to India, stating, "Asus is one of the fastest-growing notebook brands in India, and we will now expand our product lineup and business operations here to match the growing scale of business and market potential."

Presently, Asus sources nearly 80% of its production from China, with the remainder originating from Taiwan, Brazil, Europe, and Indonesia. Chang envisions India becoming Asus's second or third-largest global manufacturing site in the coming years, driven by the expansion facilitated by the PLI scheme.

While Asus was initially known for its gaming laptops in India, it has diversified its product portfolio and currently commands an 18% share in the consumer notebook market, along with around a 5% share in commercial notebooks and consumer desktops. The company has also extended its presence from online channels to offline retail.

Chang expressed confidence in the revamped PLI scheme for IT hardware, emphasising its investment and localisation requirements. The company is actively seeking local vendors to supply crucial components such as printed circuit boards (PCBs), memory units, and chassis, both within India and among its existing suppliers in China, Taiwan, and Korea.

The Indian computer market recorded sales of approximately 10-11 million units last year, and Chang believes it has the potential to rival China's market, which currently sells around 25-30 million units. While recognising India's growth potential, Asus intends to cater to local demand before considering exports. Chang emphasised, "There is sufficient demand here, which needs to be met first. Only after that, we can consider exports."

Source: Indiatimes


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