Indian Electronics Manufacturing Developments : News, Updates and Discussions

Apple India iPhone Output Soars to $7 Billion in China Shift​

Apple Inc. assembled more than $7 billion of iPhones in India last fiscal year, tripling production in the world’s fastest-growing smartphone arena after accelerating a move beyond China.

The US company now makes almost 7% of its iPhones in India through expanding partners from Foxconn Technology Group to Pegatron Corp., people familiar with the matter said. That’s a significant leap for India, which accounted for an estimated 1% of the world’s iPhones in 2021.

Apple is exploring ways to reduce its reliance on China as tensions between Washington and Beijing continue to escalate. Its longtime partners, who make most of the world’s iPhones from sprawling factories in China, have added assembly lines at a rapid pace over the past year, the people said, declining to be named as the information isn’t public.

The world’s most valuable company struggled last year with chaos at Foxconn’s main “iPhone City” complex in Zhengzhou, which drove home vulnerabilities in Apple’s supply chain and forced it to cut output estimates. At the same time, Indian Prime Minister Narendra Modi has dished out a spate of incentives to boost local manufacturing.

Of the total production, Apple exported $5 billion of iPhones in the year ended March 2023, nearly four times as much as the previous period, the people said. Apple will likely try to manufacture the next iPhones in India at the same time as in China, sometime in the fall of 2023. If so, that will be the first time that iPhone assembly begins concurrently in the two countries. And if the aggressive expansion of its suppliers continues, Apple could assemble a quarter of all its iPhones in India by 2025. Representatives for the US company declined to comment.


Even before last year’s iPhone city flareup, Apple had recognized the need to diversify its supply chain. It successfully lobbied for incentives in India and pushed suppliers Foxconn, Wistron Corp. and Pegatron to ramp up locally. The trio, which together employ some 60,000 workers in India, make models ranging from the aging iPhone 11 to the latest iPhone 14 in the country.


That’s helped place Apple at the heart of India’s ambitions to become a major manufacturing hub and alternative location to China. Apple is among the world’s most exacting when it comes to manufacturing: its production chain encompasses hundreds of companies across the world and employs millions, much of that now in China.

The migration of iPhone production represents an economic triumph for India that could have implications for how other US brands plan their futures. For Apple, the country itself represents a fount of future growth, at a time the Chinese economy is sputtering after years of punishing Covid Zero restrictions.

Apple will open its first two retail stores in India next week, one in the financial hub of Mumbai and another in the capital New Delhi. Chief Executive Tim Cook is scheduled to fly in to personally inaugurate the two stores, underscoring the domestic market’s rising importance.


Cupertino, California-headquartered Apple has also sought changes in India’s labor laws as part of its effort to expand local production and create mega factories.

Its largest contract manufacturer, Foxconn, plans to invest about $700 million on a plant in a southern state to make phone components and possibly iPhones. Foxconn, Wistron and Pegatron representatives didn’t immediately respond to requests for comment.

What Bloomberg Intelligence Says​

Reducing exposure to China’s dominance in the technology supply chain built over decades will face significant challenges, but our analysis indicates that dependence could be reduced by 20-40% in most cases by 2030. While geopolitical tensions as well as government and company policies are spurring nascent moves to diversify geographically, it will take years of investment to significantly untangle from China’s complex, efficient and skilled supply chain from semiconductors to hardware to assembly.
- Steven Tseng and Woo Jin Ho, analysts
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Vedanta Group has signed memoranda of understanding (MoUs) with 20 Korean companies from the display glass industry for the development of an electronics manufacturing hub in India.

economictimes.indiatimes.com

Vedanta joins 20 Korean display firms for electronics manufacturing hub in India

The MoUs were signed at the recently-concluded 'Korea Biz-Trade Show 2023' event organised by KOTRA, the state-funded trade and investment promotion organisation operated by the South Korean government, in collaboration with Korea's Ministry of Trade, Industry and Energy.
economictimes.indiatimes.com economictimes.indiatimes.com
 
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Daikin india a wholly-owned subsidiary of Japan's Daikin Industries , having crossed the milestone of USD 1 billion in FY23,. expects to become a USD 2-billion company in the next three years, after crossing 1 billion $ this year . grew almost 140 per cent over the last fiscal .

 
Foxconn, a major Apple supplier, announced in a filing on Tuesday that it has purchased a large plot of land on the outskirts of Bengaluru, intended to invest $700 million in a new factory in Karnataka that same month. would "soon" begin manufacturing iPhones at a new plant in the state, creating "about 100,000 jobs .

www.wionews.com

Apple maker Foxconn purchases land in Bengaluru worth $37mn, to increase manufacturing presence in India

Foxconn purchases land in the outskirts of India's Bengaluru: Foxconn, also known by its official name Hon Hai Precision Industry, is the largest contract electronics manufacturer in the world and a key supplier of Apple iPhone parts.
www.wionews.com www.wionews.com
 
Cisco will set up a manufacturing plant in Tamil Nadu to make two of its highest volume products -- switching networks and cutting-edge router platforms -- that will create 1,200 jobs at the outset . facility is already underway, and the first batch of products will begin to roll out within the next 12 months.

 
Mitsubishi Electric Corp announced to invest $231.2 million to set up AC & Compressor manufacturing facility in Tamil Nadu.
The facility would create over 2,000 jobs of which 60 per cent would comprise women employees .


compressor is one of the key components in an AC and accounts for close to 30 per cent of its manufacturing cost. And india has been mostly importing compressor as far as i know . PLI was suppose to give boost to compressor manufacturing with in few years .
 
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Foxconn to invest $500M in Telangana . it shall create 25,000 direct jobs in first Phase

 
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