Wistron partners with homegrown Optiemus to manufacture phones, hearables, EV parts

NEW DELHI: In a major development in the electronics manufacturing space, the $30 billion Taiwanese global contract supplier Wistron announced a strategic partnership with homegrown Optiemus Electronics for manufacture of mobiles phones, hearables and wearables, IT hardware and laptops, 5G components and electric vehicle parts.
This the second calling for Wistron and Optiemus together, and the companies said that they will engage in joint product development and business acquisitions, engineering capabilities, software and firmware development, while creating fresh jobs in the electronics space.
Wistron and Optiemus said that the present relationship -- which will see the local partner hire as many as 11,000 new workers at its factories in Noida -- is “strategic” in nature, and may be extended to equity participation and a joint venture if the need arises in the future.
“We will be starting on a strong foundation. We can leverage India’s engineering and software capabilities to create valuable solutions for local and international markets,” David Shen, global president and CEO for Wistron’s smart devices business, said.
The relationship is synergistic since both the companies have won benefits under the government’s ambitious production-linked incentive (PLI) scheme for electronics manufacturing, but under different price points.
In mobile phones, while Wistron will receive manufacturing benefits – ranging between 6% and 4% over a five-year period – for devices priced over $200, Optiemus got the award reserved for local companies for devices priced under $200.
“We need the local touch. We see India as a big value market, and we need a local partner. I am excited about this partnership with Optiemus and the potential future opportunities. With synergies, we can create better business opportunities in the future,” Shen said.
A Guruaj, MD of Optiemus (who previously also headed Wistron’s Indian operations), said that the companies will have a deep engagement not just in manufacturing, but in product development and business acquisitions.
“Wistron wants to grow its footprint in India, Optiemus wants to leverage the government initiatives... so it makes sense to come together from a win-win point of view.”
Wistron had first entered India in 2015 by buying a minority equity stake in Optiemus in a partnership that assembled devices for brands including Taiwan’s HTC and South Korea’s LG. Wistron has since sold its equity back to Optiemus.
In 2017, the Taiwanese major also began assembling iPhones and gradually the operations expanded to a much bigger factory in the Narasapura industrial area in Karnataka. However, it faced a major workers’ discontent over unpaid wages which had even led to a riot at the Naraspura factory late last year.
Ashok Gupta, the chairman of Optiemus, said that the company will invest over Rs 1,350 crore in the next 3-5 years as it looks to reach a turnover of Rs 38,000 crore in the same period, mainly led by PLI commitments.
“Optiemus currently has two manufacturing factories in Noida with a total combined manufacturing capacity of about two million devices per month. With the Wistron alliance, we will be able to offer Taiwanese technology at optimized cost and PLI sharing, all under one roof. Through this partnership, Optiemus and Wistron will jointly explore the possibilities of catering to both domestic and overseas customers through Optiemus’ manufacturing facilities,” Gupta said.