As the production-linked incentive (PLI) scheme for smartphones completes its third year, iPhone makers Foxconn and Wistron become the first ones to file for claims after meeting incentive targets for FY23.
While Foxconn met its production target within the first nine months of the last fiscal, Wistron and Dixon were the fastest ones to complete incentive targets and file for claims for the third round of PLI subsidies, industry sources told businessline.
Foxconn and Wistron together, manufacture the majority of the iPhones that are made in India. According to reports, the Foxconn Technology Group and Wistron Corp shipped almost $1 billion of Apple’s marquee devices abroad from India within the first nine months of FY23. Following disruptions in Foxconn’s manufacturing facilities in Hon Hai, China, the company announced more than ₹4,000 crore worth of investments for its manufacturing facilities in India.
businessline had also reported that the Tata Group has nearly completed its takeover of Wistron’s iPhone manufacturing facilities near Bengaluru.
In order to be eligible for incentives in the third year, Foxconn and Wistron must have achieved incremental sales of over ₹15,000 crore (each) and invested minimum ₹750 crore in manufacturing facilities that year.
The iPhone makers’ emphasis on Indian manufacturing comes at a time when the Centre is also trying to be accommodative to attract Apple’s lucrative supply chain to the country.
Industry sources revealed that while most iPhone makers such as Wistron, Foxconn have received incentives for year 1 and 2 of the PLI scheme, Samsung — which is also eligible for approximately ₹500-700 crore of incentives for that time period — is yet to receive that payment. While the government has cleared the incentive payout for Samsung, it has not yet paid the incentive amount to the company. Additional meetings with the PLI audit teams will be conducted before the Samsung payout is made.