Key Points
- Delta Electronics plans to nearly double its workforce in India within five years, adding 3,000 employees and establishing its largest R&D centre in Bengaluru.
- The company will shift its local headquarters from Gurgaon to Bengaluru to be closer to its manufacturing sites in Tamil Nadu.
- Delta’s expansion is part of a $500 million investment plan in India, initially delayed by the COVID-19 pandemic.
- India has seen a rise in Global Capability Centres, with over 1,620 established by international firms, reflecting India’s growing role as a tech innovation hub.
Taiwan’s Delta Electronics announced plans on Monday to nearly double its workforce in India over the next five years, including establishing its largest research and development (R&D) centre. This move reflects India’s growing prominence in the global tech industry. The company, which provides power components to various sectors, inaugurated the new R&D centre in Bengaluru, the southern city often called the “Silicon Valley of India.” Delta Electronics aims to increase its Indian workforce by 3,000 employees, bringing the total to around 6,500 from the current 3,500.
Delta Electronics currently operates three R&D centers in India and has decided to relocate its local headquarters from Gurgaon in the north to Bengaluru. This shift aligns the company more closely with its manufacturing operations in Tamil Nadu, making it strategically beneficial due to Bengaluru’s status as a major tech hub with a rich talent pool.
President of Delta Electronics India, Benjamin Lin, highlighted Bengaluru’s importance at the center’s launch event, stating, “We consider Bengaluru the right place for us to attract more talents and also for our future developments.” The new R&D center is part of a broader strategy that includes a $500 million investment in India, initially announced in 2015-16 but delayed partly due to the COVID-19 pandemic.
The expansion reflects a broader trend among international companies setting up Global Capability Centres (GCCs) in India. Over the past two years, foreign firms have established 118 new GCCs in the country, raising the total to over 1,620, according to data from the industry body Nasscom. This shift underscores India’s evolution from a low-cost outsourcing destination to a significant innovation hub.
As projected by ICICI Securities, GCCs are anticipated to contribute approximately 2% to India’s GDP by 2030, up from less than 1% currently. Delta Electronics’ strategic investment in India signals its commitment to leveraging its growing tech ecosystem and skilled workforce to drive future innovations and expansions.
