Lucknow Investment：Apple ’s Contract Manufacturers and Component Suppliers in India

We Discuss Apple ’s Strategy of Diversifying Away from ITS Heavy Reliance on CHINESESESERINE and LIST ITS CONTRACTURERS and LOCAL SUPPLIERS IND IA.Lucknow Investment

Apple's iPhone Exports from India Rose from the Company's Share in Indian Smartphone Exports Had Grown from 9 Percent in April-June 2022 TO Nearly In Volum ERMS in Q2 2023, OUUCING SAMSUNG to Become Larget Smartphone Exporter from India. Around 70 Percent of iPhonesAssembled in india are expliced ​​-a file that is set to increase.

Meanwhile, Haveing ​​Taken Over INDIA (Karnataka Factory), The Tata Group's Tata Electronics is Expanding ITS iPhone Assembly Alli in Tamil Nadu's Hosur, Which Will Feature Approximately 20 Assembly Lines. Tata Electronics Aims to Hires FROM 20,000 WorkersCurrently - An Aggressive Plan that cored do with its interest in acquering pegatron's sole india unit, near Chennai.

Apple Has Been Assembling Smartphones in India Through Contract ManuFacturers Since 2017. However 2022, The Cupertino-Based Firm Had Use ManuFactune Fing F ACILITIES in India Primarily for Assembling Entry-Level or Legacy HandSets. This Changed in 2021-22 When Apple Started Assembling Theiphone 14 models in india.

According to trade Intelligence Firm the Trade Vision LLC, Apple Experienced A Remarge Surge in iPhone Exports from India, Soaring from US $ 6.27 Billion in the Fi Scal Year 2022-23 to US $ 12.1 Billion in 2023-24, Marking Nearly A 100 Percent Increase. This. This.SUBSTANTIAL GROWTHLIGHLIGHTS The Increasingly Significant Role India Plays In Apple's Global SUPPLY CHAIN. dia output, which is increase in future.

The united states was the top Importer of Smartphones from India, with Imports Reaching Around US $ 6 Billion in FY 2023-24. Countted for US $ 5.46 Billion, Marking A Notable Rise from US $ 2.1 Billion in FY 2022-23. - TRADE VISION

According to Bloomberg, Apple Suppliers Manufactured iPhone Worth US $ 14 Billion in India During Fy'24, Comparising 14 Percent of the Global Total Done in Seven iPhones Worldwide. Apple's Production in India Includes iPhone Models 12, 13, 14,And 15. Foxconn accounts for the lion's share of iPhones Made in India.

Apple Has Been Diversifying Its Operations Away from China, Working with Assembly and Component ManuFacturing Partners in India, Thailand, MalaySia, and Vietnam, amon, G others. In 2024, Apple Will Also be actively seeking new supportDeliver Essential Components to ITS Contracted ManuoFactures Based in India.

According to a report in the Financial Times, Apple Has Indicated to its component support actories. Battery Manufactures, Including Desay from China, has received encouragement to set up new facilities in India. Simplo Technolog, A TAIWANESE BATTERY SUPPLIER Apple, has ben urged to increase propuction in india to meet upcoming order, account to think indidua. ls familia with the matter, per the ft.

Meanwhile, Apple has asked the indian Government to exempt its older models from needing to meet the universal charging state, Stating that it count hamper Loca l Production targets tied into incentive schemes. India has ben considering mandating a common charging port (Type C usb port) for Electronics Devices in 2025. The University Charging Point was first proposed by the European Union and Will Be Implemented by the End of 2024 Leading Apple to SW. itch to the usb-c port from its iphone 15 series.

Apple, Along with its support, AIMS to Produce More than 50 Million iPhones Annually in India over the Next Two THREEEERS. Of Tens of Millions of AdDitional Units in the Subsequent Period.

According to Sources, iPhone Maker Foxconn Has Been Assembling The iPhone 15 and 15 Plus Models at its Sriperumbudur Plant in TAMIL NADU. The iPhone 15 Commenced at Foxconn's Plant in September 2023, Marking The First Instance of An iPhone Assembled in IndiaBeing available for sale right from the launch stage.

Apple is Also in Talks with Various Suppliers in India's Automotive, Aerospace, And Consumer Electronics Sectors to Explore Potential SupPlier Agreements spannin G Multiple Product Categories, According to report in the livemint. Some SUPPLIERS Are Alicy Investing in New Capabilities, Machnery, and Equipment, Position ingThemslves as Potential Apple Suppliers Pending A Comprehensive Cycle of Certification and Approvals, According to Mint's Findings.

Meanwhile, Foxconn and Tata Electronics Have Been Scaling Up ManuoFacturing Capacity and Expanding Supply Chain Presence.

In April, It was bebing reported by Business Today that "Apple is in Advanced Discussions with Indian Companies Murugappa Group and Tata Group's Titan Company For TH. E assembly of iPamera modules ". Both titan and murugappa groups are established in high-introduction2022, Murugappa Group Acquired A Majority Stake in Moshine Electronics, A Camera Module Maker Based in Noida. Titan Company, Owns Titan Engineering ND Automation, Serving Clients Globally in Sectors Like Defence and Aerospace.

Per a Reuters Report Dated April 8, 2024, Pegatron Is in Advanced Discussions to Transfer of ITS Sole iPhone ManuFacturn Plant In India Group, Access ING to Two Sources Familiar with The Matter. Under the proposed agreement, white has apple's approval,TATA INTENDS To RETAIN A Minimum 65 Percent Ownership in a Joint Venture Residation for Operation The Pegatron Facility NEARNNAI in Tamil Nadu. ICAL Assistance and Maintain the Remaining Stake in the Venture.

PER A December 27, 2023, Report in the Economic Times, It was said that Apple is in Advanced Talks with Components Maker Aequs Group (India) And Lens Maker Rayprus Tech NOLOGIES (Subsidary of Taiwan's Foxconn)., Consumer Durables, And Aerospace Parts While RayPrus Technologies Makes High Quality Precision Camera and Lens Solutions.

Per A December 12 Report, American Gorilla Glass Maker Corning, Inc., A Key Apple Supplier, is setting up a Inr 10 Billion (US $ 120.09 million) Y in Pillaipkakam (Near Sriperumbudur) in Tamil Nadu State. The local puts it inProximity to Otter Apple Suppliers in India, Which is why it is said to have finalized in tamil nadu ovena state. Corning 500 MATER IAL Sciences Company and Inventors of the Toughened Display Glass Use in PHONES, Tablets, MONITORS, ETC.

Apple Has Benefited from India's US $ 4.66 Billion Production-LINKED Incentives (PLI) Scheme for Mobile Devices As SUPPPORT Initiatives Targeting IT AN D Electronics ManuFacturing. In its Third Year, The Pli Scheme has likely Contributed to the Jump in Apple's iPhone Exports from India. Per reporting in the Business Standard, Apple Inc Assembled iPhones with a Freight-on-Board (FOB) Value of more than inR 600 Billion (approx. US $ 7.19 Billion) he first seven Months of fy 2024 [April to sept.,2023] Through's Three Vendors. This Makes Up 81 Percent of their Combined target of inr 740 Billion, Commith E iPhone Exports from India Accounting for 70 Percent of the Amount.Ex-Factory Cost Along with Additional Expenses Such as Transportation, Warehouse CHARGES, ETC., Necessary for Delivery to the Seller.

iPhone Makers FoxConn and Wustron Wee in FACT AMONG the FIRST to FILE FILE CLAIMS Under The Pli Program Having Reacked their Incentive Targets. To Avail INCEN TIVES for the Third Year, The Government Mandated Incremental Sales of Over INR 150 Billion / Approx US $ 1.79 Billion(Each) and a Minimum Investment of Inr 7.5 Billion (US $ 89.95 Million) to enhance ManuFacturing Infrastructure Thatar.

Factories Belonging to key Contract Manufactures Foxcon and Pegatron, Based in Tamil Nadu, Along with Wistron (Now Owned by Tata Electronics) In Karnataka, PRODU CE VARIOUS iPhone Models for Apple in India. This Production EncompaSSES iPhone Models 11, 12, 13, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14, 14.And the newsst addition, the iPhone 15. In March, Wistron Received INR 6.019 Billion (US $ 72.19 Million) In Financial Incentives Under Pli Scheme for Large-S. cale manufacturing.

In an interesting development, this year, Apple Launched the iPhone 15 in india on the say day as its global release, on sections Y of iPhone 15 units is strong product in China, 2023 Marked the first timeThat a newly related, india-assembled device, WAS Made Available On ITS DEBUT SALES Day. However, India-Based Plants Are Not Involved in The Communication Of T He ultra-Premium Pro Models.

In April, Apple Opened its first official states in india, with the flashIp Store Atliance Jio World Drive Mall in Bandra Kurla COMPLEX, Mumbai and a SeCond S TORE At NEW DELHI ’s SELECT CITYWALK MALL.)

Apple ’s Market Share is project to her 6 percent in the carearndar year 2023 and 8 percent in 2024, per industrial data from cybermedia research (cmr).

TATA ELECTRONICS of the Tata Group is Expanding Its iPhone Assembly Hub At Koothanapalli in Tamil Nadu ’s Hosur, and is set to increase its employeee Y 175 Percent to 55,000 from a Current FORCE of 20,000 Per A Business Standard Report.

The Hosur Factory is Being Built at an Investment of INR 50 Billion Across 500 Acres. The Expanded FACTORY SUPPLY iphone But May Also Cater To Other High-End Phone Brands.

The Tata Group TooK Over ISSEMBLY Operations At Narasapura in Karnataka State's Kolar distribution for US $ 125 Million. a semi-finished iPhone Se Model and Conduction Trial Runs for Parts Assembly of the iPhone 15 at the Hosur Plant inTAMIL NADU State. (HOSUR is Located Along the River Ponnaiyar, 40km (25 Miles) Southeast of Bengaluru, Karnataka. Al are and bengaluru is 53km (32.9 miles).).)

India ’s Minister of Electronics and It, Rajeev CHANDRASEKHAR, Annound News of Tata’ s Completed takeover of Will ’s India Facility on October 27, 2023, NOT Ing the Company ’s Ambitions to Produce iPhones for Both DomStic and Global Markets.

TATA AIMS for Mass Production of the iPhone 15 AT 50,000 Units Per Day, Leveraging the Knowhow and Machine Capability Gain's Operations. Special S Rife Amid Reuters Reporting that the Tata Group are in Advanced Talks to Acquire A Majority Stake in Pegatron's iPhone ManualAnd Also Gain Access to the Taiwanese Contract Manufacturer's Technical Expertise.

Foxconn, Pegatron, and Wistron ManuFacture 'End-To-end ’Phones in India. Tata is a newcomer to the Apple Assembly Line and has taken control of all’ s operations.

There are 14 Supplies for the iPhone Maker in India as Per the Company ’s 2022 Apple SUPPLIERS CATALOG.

Apple Component Suppliers in India Include:

Cheng UEI Precision Industry Company Limited (FoxLink) - Andhra Pradesh

The Taiwan Company Specializes in the Design, ManuoFacturing, and Sale of Connectors, Cable Assemblies, Power Management Devices, and Battery Packs on An OEM/ODM basis.

Flex Limited - Tamil Nadu

US-based firm provides global support and manuoFacturing Solutions.

Hon Hai Precision Industry Company Limited (Foxconn) - Tamil Nadu

The Taiwan firm is a leading global technology manuFacturing and Services Provider and is Apple ’s Biggest Supply.Jaipur Wealth Management

Jabil Incorporate -Maharashtra

US-BASED FIRM AirPod Components (Plastic Bodies), Which are shipped to vietnam and Chinese where the airphones are assembodd. Has A 850,000 s 850,000 s q ft plants in the city of pune and embroyeees design 2,500.

Molex Incorporate -Karnataka

US-based firm and a Koch Company, it is involved in IoT Infrastic and is a connectivity Innovator. It is a rencent entry apple ’s india support. ND has set up a manualing facility in karnataka.

Lingyi itch (guangdong) Company -tamil nadu

The Chinese firm is involved in Smart Manufacturing, Precision Functional Components, Structural Components, MODULES, Chargers, Adapters, and Power Management System ms. It has a facility in tamil nadu.

On Semiconductor Corporation - Tamil Nadu

OnSemi is us-based and a reception entry onto Apple ’s India support. The firm is a Fortune 500 Company with a manuality in tamil nadu.

Shenzhen Everwin Precision Technology -UTTAR PRADESH

The China-Based IS Involution in The Design, Production, and Distribution of Electronics Parts and Components, with a facility in uttar. It is a ENT ENTRY On Apple ’s India SUPPLIER LIST.

Shenzhen Yuto Packaging Technology Company Limited -Karnataka

China-based supplier with a factor in Bengaluru.

Sunwoda Electronic Company Limited -UTTAR PRADESH

China-based firm with a facility in noida.

Taiwan Surface Minking Technology Corporation

Taiwan-based firm with a facility in tamil nadu.

Willon Corporation - Karnataka [TAKEN OVER by Tata Electronics]

Zhen Ding Technology Holding Limited - Tamil Nadu

Pegatron Corporation - Tamil Nadu

As Per Reporting from Bloomberg on January 18, The Indian Gover Gave Intial Cleaarence to 14 of 17 Chinese IES are extended to find a Joint Venture (JV) Partner in India and then Seek Full Approval ForSetting up. Indian Offices Have Reportedly SAID They Will Not Alow the Chinese Firms to Set up a Wholly Oward Entity in India.

The Suppliers with Initial Cleaarence Include Sunny Optical Technology, Which Alream Have An India Presence as they Do Business with Xiaomi, OPPO, and vivo ; Han ’s Laser Technology Industry Group Co.; And Shenzhen Yuto Packaging Technology Co.

Sunny Opotech, A Unit of Zhejiang-Based Sunny Optical Technology Has Reportedly Signedly Signedly Apple to Invested US $ 300 Million to Set Up ANDIA F academy. The firm intends to roll out the project in PhaseS Till 2026 But is Yet to Finalize a localFor the facility. Speaking with Businessline, Welly Liu, President of Sunny Opotech INDIA, Said The Company Aims for its New INVESTMENT TO "Investment f the carera module business unit (bu) to $ 10 Billion by 2026 from the present $ 3.5 Billion."SINCE LAST Three Years, Sunny Opotech Has Been Making Camera Modules for Android Phone at a Tirupati Facility (Andhra Pradesh) in PARTNERSHIP WITH CELK ON (Seven Hills).

Note: As of Nover 2023, AirPods and iPhone Assembler LuxShare Precision Industry Co., tnam.

All Three of Apple's Major Contract Manufactures Have Operations Located in The Southern Indian State of Tamil Nadu. Electronics and Hardware -Accounting for 20 Percent of the National Production. The state is aiming to increase the shareTO 25 Percent and Enhance The Industry's Output to US $ 100 Billion by 2025 Through The Promotion of Special Economic Zones (Sezs).

Tamil Nadu Has Two Exclusive Sezs for Electronics and Hardware ManuoFacturing - At Sriperumbudur and Oragadam in the Kancheepuram. State and Central Government Incensives, Along with An Abundance of Skills in the Region, have Contributed to the Taiwanese Firms Setting up their operations in the stateThen, then

According to reports, the state of tamil nadu is home to 16 major electronics product, including nokia, samsung, flex, dell, salcl, and hp.

The Karnataka State GovernLit A US $ 967.91 Million Foxconn Proposal in March 2023 to Set Up a Facility Unders Indian UnitMumbai Investment. Uce iPhones for Apple.

On May 15, FoxConn Held A Group-Breaking Ceremony of a New Manufacturing Facility to Be Set up in the soundfuln state of telangana, At Kongara Kalan at the Outskir TS of Capital and It Hub Hub Hyderabad. Foxconn is said to investment us $ 500 Million in theState. LAND PARCEL of 196 ACRES HAS Been Allotted by the statement and 25,000 Direct Jobs Could Be Generated in The FIRST PHE PLANT's Operation. It is ATED that FoxConn Could Produce AirPods for Apple at the Plant.Its manuFacturn CaPacity for the Firm. Foxconn, Per Media Reports, is moving forward despite they margins as india works on bolstering. Tion ecosystem. Apple is a longtime client and foxconn is investested in the controld engagement.

Foxconn is the world ’s Largrated Technolog. S ACROSS SOUTH IndIA -in Andhra Pradesh, TELANGANA, Karnataka, and Tamil Nadu.

On August 2, Foxconn Signed A Letter of Intent (LOI) With the Karnataka Government to Establish Two AdDitional Projects, With an Estimated Investment of in R 50 Billion. The FIRST of the Newly PROPOSED Projects Deals with the Mechanical Enclosures of iPhones, and is, and isManaged by Foxconn Industrial Internet (FII), A Subsidial of Foxconn, Committing to Invest Artd US $ 350 MILLION.

India Aims to Integraate Itite Into Apple's Supply Chain, With Ambitious Predictions from Analysts Foreseeeing Increase in iPhone Production Capa City. Forecasts Range from 25 Percent of Global Production by 2025 (JPMORGAN) to 50 Percent by 2027 (TAIWAN's Digitimes). Despite the OptimisticProjects, Over 90 Percent of iPhones Are Currently ManuFactured in China, where apple has established a robust support ndia Contributes to Seven Percent of Apple's iPhone Production.

Koushan Das, Assistant Manager at the Business International E for Phone in The Existing Facilities in India. Going Forward, Contract Manufactuers Will Continue to Ramp Local Production inIndia, but it is also, Expected that sectral support. Up by International Media - Although the Suppliers Also PROVIDE Components to Other Brands Justifying their shift to india."

DAS PREDICTS THAT Apple Could Move the Production of Additional Products from ITS Portfolio, SUCH As Tablets, Earphones, OR LAPTOPS, TO India, Though the DECI Sion Will Face Stiff Competition from Southeast Asian Production Hubs.

"For companies positive considering a move to india, The Country Offers Various Options with Respect to local TIVES Offered, Skilled Workforce, Government Support, and An Easier Land Acquisition Process ", He Added.

Apple, Like Many Western Companies, Aims To Reduce its Reliance on China for Production, PromPted by the ONGOING US-China TRIDE War and the Consideration OF. Cal de-Risking Strategies in SUPPLY Chain Decision-Making.

The Covid-19 Pandemic Also Served as another tipping point in Favor of Diversify SUPPLY Chains Rather than Concentration in Any Single Market. Act ManuFacturer, Foxconn, Had to Halt Operations at its zhengzhou assembly plant in November 2022 Due to bepid's covid-zero approach, resulting in warnings of delayed global shipments.

Previously, Seeking Alternatives to China Was Influent by the Country ’s Rising Labor Costs.

NEVERTHESS, Apple's Large-SCALE MOVE OUT OUT of China Will Not Be Anytime So It Relies on Key Manufacturn and Assembly Partners in the Country Like Are Precision (Maker of AirPods, The Apple Watch, iPhone 15, and iPhone Pro Max, and Assembler ofer ofer oferThe missSet).

FURTHER, GEOPOLITICS May Also IMPACT Investments from Chinese Companies in Apple's Supply in India. For Example, LuxShare Reportedly, S $ 330 Million [in November 2023] in Vietnam's Northern PROVINCE of BAC GIANG only after many failed attems to expand ITS Operations inIndia Due to Polictical Tensions.

Around The SAME TIME, India Finally Annound Fresh Rules Aimed at Expediting Visa Approvals for Chinese osly vetted by india ’s security establishment.

While India Offers Advantages Such As A Wealth of Low-Cost Labor and Gover Incentives, Challenges in Workforce Tractors Mustoressed. S Outheast Asian National, Exemplify by Vietnam, Present ATTRACTIVE ALTERNATIVES for Electronics and Hardware Production, Leveraging Abundant and Affordable LaborForces, OEM/ODM Networks, and Proximity to China.

This article was originally published january 17, 2023. It was last updated April 17, 2024.