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Apple Suppliers Continue to Lay Groundwork for Moving More Production to India

Apple Suppliers Continue to Lay Groundwork for Moving More Production to India

The Times of India today reported that another Apple supplier is planning to move a significant amount of its production from China to India. The unnamed Apple contract manufacturer is expected to shift six production lines, with the aim of exporting $5 billion worth of devices from India.

The new production lines are expected to generate employment for around 55,000 workers over a year. Initial production will involve the iPhone, but may expand to other Apple devices later on.

Currently, a large number of Apple supply partners are readying production facilities in India, with Wistron, Pegatron, Foxconn, and Samsung all expected to set up facilities in the country.

Foxconn announced last month that it is now assembling Apple’s iPhone 11 lineup in India. The company previously manufactured the iPhone XR and original iPhone SE in a plant near Chennai, and that plant has now added the iPhone 11 to its production line. The new assembly responsibilities for the Indian plant mark the first time iPhone 11 devices have been made in India.

The above-listed companies are joining other companies in diversifying their supply chains as they work to reduce their dependence on China, as the country has come under increased scrutiny due to the growing trade war with the U.S., as well as the global COVID-19 crisis.

The Indian government has been working to attract production to India, via its “production-linked incentive” (PLI) program, which is designed to attract companies who build electronic components and other products. The government has pledged up to 6% of the costs of locally produced goods over the next five years. 22 companies from various countries have so far applied to the PLI program. So far, there have been no applications from Chinese companies.

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