Apple Kicks China Out:Choose India For Production

Foxconn, the world’s largest technology manufacturer and service provider, recently announced that it would reduce its production in mainland China.

On Wednesday, the company Foxconn Chairman said, “almost 70% of the company’s current income comes from mainland China. However, the share market outside mainland China will rise in the future”.

Foxconn is always willing to multiply the number of staff by 100,000 by 2024. The company also plans to increase the yearly production of assembled Apple phones in India to nearly 20 million. Currently, the facility turns out 6 million iPhones annually.

However, Foxconn aims to establish a new manufacturing facility in Karnataka. According to the latest reports, Apple iPhones and other devices will be manufactured here.

In addition, Foxconn has big plans to expand its production facilities. The company is also trying to build a new facility in Hyderabad.

However, it plans to establish a Silicon carbide manufacturing AMD packaging plant for the Indian semiconductor market.

India is an ideal choice for many manufacturers due to its low labour cost. Therefore, Apple Inc has been trying to speed up its supply chain shift in recent years.

It is still not easy to create a new setup at the new place. According to many supply chain players, the low yield rates are temporary. With further developments, Apple will soon start its production in India.

Apple And India Can Form A Strong Relation

As we know, Apple is an American-based company, but unable to do significant production in the US due to high production costs.

China has been Apple’s production base for many years. However, the tension generated between China and the US has also affected the company.

Likewise, for the last few years, India has been trying to push companies to establish their manufacturing plants in India. It depicts that India and Apple are on the same page.

As per the analysts, by 2025, Apple has planned to produce most of the iPhones in India.

However, Apple is already been manufacturing iPhones in the southern Indian state of Tamil Nadu since 2017. In contrast, deciding to make their flagship module in India is a significant step as trade tensions between Beijing and Washington show no sign of letting up.

As we know, Covid-19 has led to industrial lockouts and significant scale supply chain disruptions.

“Companies are no longer willing to sit and wait for a policy change in China or put their eggs in one basket for their sourcing needs”, stated Oskar De Bok, CEO of a logistics company.

“They want to make sure they have two or more alternatives”. In addition, he also said that this trend towards “omni-sourcing” had clear beneficiaries in countries like Vietnam, India and Mexico.

Apple wants to move out from China, whereas India wants to welcome relevant brands.

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