D-Link is reportedly considering outsourcing production of its network devices in India. The Taiwanese company plans to start local production for the devices that are sold within 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 possible production sites are currently unknown.
D-Link’s decision comes amidst rising tension between India and China. The Indian government banned 43 more Chinese apps including AliExpress, CamCard, Taobao Live on Tuesday. Despite the chaotic situation, D-Link president Mark Chen said that priority will be given to local production in India. As per a report by DigiTimes, Chen said he believes that localised production is a primary alternative for companies that are planning on dispersing their global supply chains.
The PLI scheme is a Rs. 50,000-crore plan launched by the Indian government to boost manufacturing of electronics locally. Apple suppliers like Foxconn, Wistron, and Pegatron plan to make investments under the scheme. The move by D-Link to gain from the PLI scheme is claimed to be of advantage not only to the company, but also to the root-level Original Equipment Manufacturers (OEMs) in India.
D-Link also intends to boost its sales to North America, particularly in the US, which is another reason for its plan to expand production beyond China. North America-bound shipment makes about 10 percent of its total sales.
The finer details of the plan including the location of the production units and the supposed time by which it will be start is not clear as of yet.
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