Industrial PC Manufacturers Launch Major Expansion Southward: DFI, APLEX Technology, Advantech, and More Develop the Indian Market
Source: 工業電腦廠 南向大進擊…友通、維田、研華等開發印度市場 | 科技產業 | 產經 | 聯合新聞網 (udn.com)
Original News Issued Date: 25 August 2024
What to learn from this article:
Why have Taiwanese IPC manufacturers relocated their production facilities to Southeast Asia?
What activities are Taiwanese IPC manufacturers pursuing in Southeast Asia beyond establishing production facilities?
How will the 'Made in India' policy impact the IPC industry?
Taiwanese industrial computer manufacturers, responding to demands from their European and American clients, have completed the establishment of new production facilities in Southeast Asia. Recently, their strategy has shifted from focusing solely on manufacturing bases to exploring local business opportunities. Companies such as DFI and APLEX Technology are tapping into the Indian market through trade show participation. Advantech and Posiflex are employing localized business strategies to approach the Indian market, while Ennoconn plans to explore AI-related business opportunities by expanding from Singapore as a starting base.
Since the second half of 2023, major industrial PC markets, including Europe, the United States, and China, have begun undergoing inventory adjustments. With intensifying competition between the U.S. and China in recent years, companies have relocated their production facilities from China to India and Southeast Asia. Consequently, Southeast Asia and India, previously overlooked, have become key focus areas for industrial PC companies aiming to establish new markets over the past two years.
This year, both DFI and APLEX Technology participated in Automation India 2024, showcasing their latest embedded systems, AI edge computing products, smart charging stations, and Intelligent Traffic Management System (ITMS) solutions.
Chia Hung Su(蘇家弘), General Manager of DFI, noted that India has clearly become a crucial battleground for global industries. The 'Made in India' policy, central to India's strategy, has attracted numerous manufacturers to establish factories in the country. This, in turn, has spurred the local manufacturing industry to initiate automation and smart transformation, creating significant opportunities for industrial PC manufacturers.
Advantech has been operating in India for over 20 years. Recently, the company relocated its Bangalore operations and service center to a larger facility. In addition to expanding its existing services, which include a customized manufacturing center, logistics center, and RMA center, Advantech has also broadened its offerings to include comprehensive service solutions.
Posiflex, one of the world's top five Point of Sale (POS) manufacturers, is among the few Taiwanese industrial computer companies that established a presence in India early on. Its POS terminals hold over 50% of the market share in India, making Posiflex the largest supplier in the country. In recent years, Posiflex’s business in India has become a key driver of the company’s growth.
As for Ennoconn, the company is focusing on opportunities in Southeast Asia. Under the leadership of Chairman Fu-Chuan Chu(朱復銓), Ennoconn plans to expand its operations from Singapore, its base in the region. In addition to establishing an AI research center in Singapore, the company intends to set up locations in Vietnam, Thailand, and Malaysia this year. At the same time, Ennoconn will concentrate on AI applications as its core development strategy, with plans to invest in or acquire Southeast Asian software companies in the future, aligning with the growth of the Ennoconn AI Research Institute.
Prior to this, some industrial manufacturers had established new production facilities in Southeast Asia in response to requests from their European and American clients, due to geopolitical risks between China and Taiwan. Ennoconn's production facility is located in Malaysia, IBase’s production is based in Vietnam, and DFI has utilized its parent company, Qisda Group’s factory in Vietnam for flexible production scheduling.