D-Link May Start New Production Unit in India: Report
D-Link is reportedly considering outsourcing the production of its network devices to India. The Taiwanese company plans to start local production of the devices sold in India. By outsourcing production to India, D-Link aims to benefit from India’s PLI (Production Linked Incentive) scheme. As of now, D-Link has a subsidiary in India, with the office located in Mumbai, although potential production sites are currently unknown.
By D-Link The decision comes amid growing tension between India and China. Indian government prohibited 43 more Chinese apps, including AliExpress, CamCard, Taobao Live on Tuesday. Despite the chaotic situation, D-Link President Mark Chen said that local production in India will be prioritized. According to a report Per DigiTimes, Chen said he believes localized production is a prime alternative for companies planning to disperse their global supply chains.
the PLI scheme it is a Rs. 50,000 crore plan launched by the Government of India to boost local electronics manufacturing. Apple providers like Foxconn, Wistron and Pegatron to plan make investments under the scheme. D-Link’s move to benefit from the PLI scheme is claimed to be an advantage not only for the company, but also for root-level original equipment manufacturers (OEMs) in India.
D-Link also intends to boost its sales to North America, particularly the US, which is another reason for its plan to expand production beyond China. Shipping to North America represents approximately 10 percent of its total sales.
The finer details of the plan, including the location of the production units and the supposed time it will start, are not yet clear.