Apple Exploring Markets In India, Japan & Korea To Expand Manufacturing Base

(MENAFN- KNN India) New Delhi, Dec 6 (KNN) The tech giant Apple is now reportedly exploring options to engage with new suppliers, with a specific emphasis on companies from India, Japan and South Korea, reported the Economic Times citing people familiar with the development.

The primary aim is to source crucial components for its contract manufacturers in India, including batteries, camera lenses, chargers, and other essential equipment required for the production of Apple's flagship iPhones and iPads within the country.

At present, Apple is facing delays in government approvals for imports of crucial components from existing suppliers, which are primarily based in China.

In January 2023, about 17 Chinese companies that supply Apple's devices applied for government clearances in seeking permission to set up manufacturing facilities in India, the ET report said.

Fourteen of these companies were granted initial approvals. While the applications of four of these companies were indefinitely delayed, six of them said that they were no longer interested in setting up manufacturing facilities in India. The status of the remaining four companies was unknown.

Elaborating on the matter, a senior government official told ET, "The approvals (in January) were only initial approvals. Because most of these companies have Chinese origin, national security is also an issue. Those approvals have to be carefully given. Issues of environmental clearances, which are a state subject, are given by expert committees."

In the recent years, Apple adopted an assertive approach in its efforts to set up manufacturing operations in India, aiming to diversify its supply chain beyond China.

The company has outlined plans to significantly increase its production capacity in India by more than five times, reaching an estimated value of USD 40 billion, (approximately Rs 3.32 lakh crore). It aims to achieve this expansion in the next 4-5 years.

The Tata Group is poised to become the first Indian iPhone maker, as it acquires the Indian unit of Taiwan-based Wistron Corp, a contract manufacturer for Apple. The sale of Wistron Corp's India unit to the salt-to-software conglomerate is valued at USD 125 million.

(KNN Bureau)


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