Rampant Covid-19 infections across India have not only disrupted production at plants run by Taiwan's electronics suppliers there, but also made it more difficult for them to dispatch Taiwanese management staff to the South Asian country, according to industry sources.
Brand vendors did ask their Taiwan-based partners to maintain assembly lines in India to diversify production bases beyond China, but the daily tally of over 300,000 infections in the country has cast dark clouds over their manufacturing operations there, the sources said.
The raging pandemic is expected to make it difficult to hire local employees, and the overall recruitment costs will go up significantly as a result, the sources continued.
It has become more difficult for makers to send mid-level management staff from Taiwan to India even by offering attractive salary compensations, the sources said, adding that the riot at Wistron's plant late last year, the worsening pandemic and poor medical support in India have combined into strong psychological barriers for Taiwanese managers to work in the country.
Taiwan manufacturers will see the ratios of Taiwanese managers working at their plants in India drop, but the corresponding ratios for Chinese managers may rise, said the sources.
Chinese managers would be more attracted to work in India by good compensation packages, given that commodity prices continue to rise in China but remain at relatively low levels in India, enabling them to save a considerable amount of money in years, the sources reasoned.
Furthermore, the Chinese manufacturing industry has entered a period of plateau with demand for mid-level management talent getting saturated and competition among them becoming increasingly fierce. India is an alternative for them, the sources said.