Although the Indian riots took place a few days ago, Apple's determination to expand manufacturing in India is still unabated. According to foreign media reports, the relevant supply chain is drawing up plans to set up factories in India.
Despite the destruction of Wistron’s southern India plant, Apple still decided to expand its manufacturing scale in India, including printed circuit boards, batteries, casings, etc. will be manufactured in India, and many Apple Taiwan suppliers will also set up factories in India .
The Economic Times of India quoted an unnamed person familiar with the matter on the 25th as saying that no matter what violence the supplier Wistron encountered at its factory in Karnataka, India, Apple’s plan to expand manufacturing in India has not changed. , Is seeking more global suppliers to set up factories in India.
Another person familiar with the matter pointed out that some of Apple's manufacturing partners are further finalizing their plans to set up operations in India. These suppliers that will be manufactured in India include Pengding Holdings (Shenzhen), which provides printed circuit boards (PCB), and BYD, which manufactures iPads. Electronics, Luxshare Precision, which manufactures AirPods, Quanta Electronics, which manufactures Macbooks, etc.
India's local procurement becomes a key component of the product
This person said that some of the aforementioned Apple supply chain companies have registered and established subsidiaries in India, some are undergoing registration procedures, and some of Apple's smaller partners will also enter India next year.
Navkendar Singh, head of analysis at IDC, a market research firm, said that in the next few years, local sourcing in India will become a key component of Apple's technology products.
Despite the destruction of Wistron’s southern India plant, Apple still decided to expand its manufacturing scale in India, including printed circuit boards, batteries, casings, etc. will be manufactured in India, and many Apple Taiwan suppliers will also set up factories in India .
Singh also pointed out that it is clear that India is an important market for Apple, and it must use all the initiatives and policies of the Indian government to make India the next major manufacturing and export center for Apple.
He added that batteries, display panels, casings, and different parts may be one of Apple's initial focus areas. This is Apple's process of moving part of its manufacturing from other regions to India.
Many suppliers apply for government incentives and prepare to set up factories
The report further stated that in India, Apple has cooperated with Shenzhen Yuto Packaging Technology, Sunwoda Electronic, and CCL Design to obtain various parts and packaging; while in Taiwan Zhengwei Precision may also set up a new plant in India to mass-produce connectors, cables and other parts for Apple. As for Hon Hai, Wistron and Pegatron, they have applied to the Indian Central Government for a production-related incentive (PLI) program that provides incentives for digital manufacturing, and then participated in the second part of the PLI electronic component manufacturing incentives.
Apple’s three major Taiwanese suppliers Hon Hai, Wistron, and Pegatron, which is currently renting land to build a plant, have applied to the Indian central government for a "production-related incentive" (PLI) program that provides incentives for digital manufacturing to expand manufacturing in India. Participate in the PLI Part 2 of the electronic component manufacturing incentives. The three major manufacturers have pledged to invest a total of 650 billion rupees in India, hoping to create an output value of 20 billion rupees in the next five years.
Taiwan Zhengwei Precision Industry, which produces cables and connectors for Apple products, may also produce mass-produced connectors, cables and other parts for Apple 12 months after setting up a new plant in India.
People familiar with the matter said that Apple may also invite more suppliers to set up factories in India, including testing and packaging and other different manufacturers to make in India.
Hon Hai, one of Apple’s three major Taiwanese suppliers, has applied to the Indian Central Government for a "production-related incentive" (PLI) program that provides incentives for digital manufacturing to expand manufacturing in India, and then participates in the PLI Part 2 of the electronic component manufacturing incentives .
In addition, Apple is also exploring cooperation with Indian companies. According to previous media reports, India’s Tata Group may cooperate with Apple to set up an electronic parts factory in Tamil Nadu to produce various parts such as casings for Apple.