Apple’s Global Manufacturing Strategy Tilts Towards India With Taiwan Factories Playing Leading Role

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Apple’s latest telephone exemplary iPhone 14 is acceptable to beryllium produced and assembled successful India, with Taiwan-based foundries Foxconn, Wistron, and Pegatron playing cardinal roles.

News that Apple has begun assembling iPhone 14 models successful India, was released connected Sept. 26 and is being seen arsenic different denotation that the tech giant’s planetary accumulation strategy is tilting distant from China.

J.P. Morgan has predicted that Apple volition displacement 5 percent of its planetary iPhone 14 accumulation to India by this twelvemonth and 25 percent by extremity of 2025.

A Foxconn works located 40km distant from Chennai, the superior of Tamil Nadu, is assembling the iPhone 14. The works has besides been assembling iPhone 13 since April, Reuters reported.

In 2017, Apple archetypal assigned Taiwanese electronics shaper Wistron to nutrient the Indian-made iPhone portion Foxconn followed a twelvemonth later. A 3rd Taiwanese foundry Pegatron acceptable up an assembly works successful India successful 2021, according to Taiwan-based Business Today.

Indian-made iPhones are expected to summation by much than 70 percent this twelvemonth to 12 cardinal units, compared to 7 cardinal units past year, arsenic reported by Digitimes, a Taiwan-based quality media absorption connected semiconductor and electronics industries, on Sept. 7.

Epoch Times Photo People exit from the gross of Wistron, a Taiwanese-run iPhone mill astatine Narsapura, astir 60 km from Bangalore connected Dec. 13, 2020. (Manjunath Kiran/AFP via Getty Images)

Advantages of Taiwanese Assembly Plants

From the aboriginal motorboat of the iPhone 3rd procreation bid to now, lone those 3 Taiwanese plants—Foxconn, Wistron, and Pegatron—are capable to conscionable Apple’s specifications, Taiwan fiscal adept Shiu Chin-Huang told The Epoch Times.

“It is not casual to assemble smartphones arsenic it requires much and smaller components and higher assembly complexity,” helium said. “Furthermore, factories indispensable present the specified quantities and minimize defects portion controlling costs.”

Shiu said that the physics constituent manufacturing institution Luxshare successful mainland China is besides incorporated into Apple’s proviso chain, but Apple presently allows it to marque portion of the iPhone 14 series, chiefly supplying the Chinese market.

Luxshare’s assembly capableness cannot vie with Foxconn, said Shiu, citing that Luxshare is incapable to conscionable Apple’s prime requirements, arsenic the high-end iPhone 14 pro bid requires higher complexity of assembly technology.

Made successful India

Apple’s displacement comes arsenic businesses successful China person been dealing with a worsening concern situation including disruptive zero-COVID policies, tightening regulations, and planetary tensions.

Asked wherefore helium thought Apple was looking beyond China, Shiu said helium believed it was owed to the communist authorities’ assertive tendency for idiosyncratic information power and marketplace stock of the benefits.

As an example, Shiu said that this twelvemonth regulators told Apple that compartment phones sold to the Chinese marketplace should person a definite ratio of Chinese home accumulation and indispensable usage NAND flash, a retention instrumentality made by state-backed Yangtze Memory.

Apple’s tipping its manufacturing basal to India represents its planetary layout, which would beryllium that “iPhones sold to China are made successful China”, portion phones made successful India tin beryllium sold to the full world, Shiu said.

Yun Yun Huang