Three years after the government launched the production-linked incentive (PLI) scheme for smartphone manufacturing iPhone makers Foxconn and Wistron have become the first companies to successfully met the incentive targets for FY23. According to a report by The Hindu BusinessLine, Foxconn and Wistron become the first ones to file for claims after meeting incentive targets for FY23.
The report quotes industry sources saying, while Foxconn met its production target within the first nine months of the last fiscal, Wistron and Dixon Technologies were the fastest ones to complete incentive targets and file for claims for the third round of PLI subsidies.
The majority of made-in-India iPhones are manufactured by Foxconn and Wistron. According to a Bussines Standard report, within the first nine months of FY23, the Foxconn Technology Group and Wistron exported $1 billion worth of Apple products from India. Foxconn also announced investments totaling more than Rs 4,000 crore for its production operations in India after disruption at its Hon Hai, China, facilities.
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Foxconn and Wistron have to reach incremental sales of over Rs 15,000 crore and make a minimum investment of Rs 750 crore in manufacturing facilities in order to be qualified for incentives.
Industry sources also told BusinessLine that while most iPhone makers such as Wistron and Foxconn have received incentives for year 1 and 2 of the PLI scheme, Samsung — also eligible for approximately Rs 500-700 crore of incentives for that time period — is yet to receive that payment.
Although the government has approved the incentive payout for Samsung, the money has not yet been given to the company. Before the Samsung payout is made, additional discussions will be held with the PLI audit teams, the report said.