Wistron Corp (緯創), an assembler of Apple Inc iPhones, yesterday approved a capital injection of US$33.5 million at its after-sales subsidiary in India so that it can build a smart devices plant for the Indian market.
“It will be Wistron’s first wholly owned plant in the country,” a Wistron investor relations official said by telephone.
Wistron has a coinvested smartphone plant with India’s Optiemus Infracom Ltd in the state of Uttar Pradesh with a production capacity of 600,000 smartphones per month.
The Uttar Pradesh plant’s clients include Taiwan’s HTC Corp (宏達電) and China’s Oppo Mobile Telecommunications Corp (歐珀移動), according to Indian media reports.
Wistron’s decision to expand its manufacturing capacity by setting up a wholly owned plant shows that it is optimistic about India’s growing domestic market.
The smartphone penetration rate is still less than 30 percent in India, making it one of the most attractive markets in the world, according to International Data Corp data.
The official said the wholly owned factory, which is to be in Bengaluru, is expected to become operational and enter mass production for a smart-devices client at the end of next quarter at the earliest.
However, the Wistron official said the company could not disclose the production capacity or the number of employees at the plant at client’s request, as it would reveal the scale of production.
On the back of its growing smart devices business, Wistron’s board yesterday also approved a US$11.67 million expansion plan at the company’s smart devices factory in Kunshan, China.
The new plan comes only two months after the board agreed to invest US$2 million to purchase additional equipment for the Kunshan plant in September.
The official said the company would install new equipment to raise the production capacity this quarter.
Wistron expects its smart devices and liquid crystal modules (LCM) businesses, which contributed about 24 percent of its total revenue, to remain its main growth drivers this quarter, the official said.
The official said shipments by the company’s notebook business, which accounted for 40 percent of its total revenue, would decline by between 5 and 10 percent quarter-on-quarter due to the beginning of the traditional slow season.
Wistron’s net income plunged 22.07 percent year-on-year and 16.88 percent quarter-on-quarter to NT$512 million (US$16.1 million) last quarter, missing the market consensus estimate of NT$668 million.
The firm attributed the decline to a NT$338 million foreign-exchange loss due to the New Taiwan dollar’s appreciation against the US dollar.
STEADY: Prices are to rebound following inventory rebuilding demand, TrendForce said, with Samsung Electronics Co further trimming capacity as it slashes DDR4 lines The contract prices of DRAM chips are to rise by as much as 18 percent sequentially this quarter — the first price upticks in about eight quarters — driven mainly by inventory rebuilding demand for DRAM chips used in mobile devices and PCs, TrendForce Corp (集邦科技) projected yesterday. The price rebound is led by a quarterly increase of mobile DRAM chips, which are to climb between 13 percent and 18 percent quarter-on-quarter this quarter, which has not been seen since the fourth quarter of 2021, the Taipei-based market researcher predicted. Likewise, the price of mainstream PC DDR4 DRAM is expected to bounce
SOLID FOUNDATION: Given its decades of expertise in megatronics, manufacturing and robotics, Japan has the wherewithal to create its own AI, Jensen Huang said Nvidia Corp plans to help build an artificial intelligence (AI) tech-related ecosystem in Japan to meet demand in a country eager to gain an edge in this emerging technology. The US company will seek to partner with Japanese research organizations, companies and start-ups to build factories for AI, Nvidia CEO Jensen Huang (黃仁勳) said yesterday during opening remarks in a meeting with Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura. The company is to set up an AI research laboratory, and invest in local start-ups and educate the public on using AI, Huang said. Huang earlier this week met with Japanese Prime
A Hong Kong court postponed a court hearing on troubled Chinese property developer Evergrande Group’s (恆大集團) winding-up petition scheduled for yesterday until Jan. 29. Evergrande is trying to win support from its creditors for a plan to restructure more than US$300 billion in debt to stave off liquidation. The company’s lawyer told the court it was requesting an adjournment to “refine” its new debt restructuring plan. The Hong Kong High Court has postponed the hearing over Evergrande’s potential liquidation several times. Judge Linda Chan (陳靜芬) had said in October that yesterday’s hearing would be the last before a decision is handed down. Chan
Huawei Technologies Co (華為) is among a field of “very formidable” competitors to Nvidia Corp in the race to produce the best artificial intelligence (AI) chips, Nvidia chief executive officer Jensen Huang (黃仁勳) said yesterday. Huawei, Intel Corp and an expanding group of semiconductor start-ups pose a stiff challenge to Nvidia’s dominant position in the market for AI accelerators, Huang told reporters in Singapore. Shenzhen-based Huawei has grown into China’s chip tech champion and returned to the spotlight this year with an advanced made-in-China smartphone processor. “We have a lot of competitors, in China and outside China,” Huang said. “Most of our competitors