Apples 14 Chinese contractors have been approved to expand manufacturing
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Apple’s 14 Chinese contractors have been approved to expand manufacturing in India

As various sources have noted more than once in the past few weeks, the trend to expand production of Apple devices in India will also hit Chinese contractors, as the company’s geographic location and not its origin is what matters here. According to recent reports, 14 of Apple’s Chinese contractors have already received approval from the Indian authorities to expand their production capacity in the country.

    Image source: Samyukta Lakshmi, Bloomberg

Image source: Samyukta Lakshmi, Bloomberg

The agency announced Bloomberg citing their own sources. Among others, the contract manufacturer of AirPods and iPhone – the Chinese company Luxshare Precision Industry, as well as a division of the optics manufacturer Sunny Optical Technology Group Co. Local laws mean that foreign manufacturers still have to find business partners in India.

The relationship between India and China cannot be described as smooth, but the authorities of the first of the countries are aware of the potential benefit of the exodus of manufacturing bases from China, which will result both from the exacerbation of the contradictions between the Celestial Kingdoms and the Kingdoms of Earth stimulated by the USA and by the general trend towards risk diversification based on geographical aspects. Already last year, the Taiwanese company Foxconn managed the release of the latest generation of Apple smartphones in India with minimal delay compared to China.

According to the source, Indian authorities, in agreement with Apple, have given permission to expand operations to 14 companies whose services they need to use to increase production of their products in the country. India’s Tata Group already supplies Apple with a range of components, and going forward, the number of local companies that have entered the chain is only expected to increase. At least in India, there will be other joint ventures with the same Chinese or Taiwanese Apple suppliers.

The border conflict in 2020 cooled China-India relations for a long time, causing Chinese companies to miss the opportunity to open their representative offices in the latter country without special approval from the authorities. Chinese investors were also left without subsidies from the Indian government. Taiwanese manufacturers were treated more favorably, but expanding their presence in India was not possible without developing an ecosystem formed by Chinese suppliers. It is noteworthy that Apple’s original list included 17 Chinese companies that required approval to carry out investment projects in India, but at least three suppliers were not selected due to suspicions of direct ties to the Chinese government.

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Johnson Smith

Johnson Smith is interested in Home Theater & Audio, Smart Tech, Google News & Products, How To, Apple News & Products, Cell Phones, Automotive Technology.

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