New Delhi (VNA) - India started exporting electronic components to China and Vietnam for Apple device production, signaling a significant shift in the global supply chain.
The suppliers include Motherson Group, Jabil, Aequs and Tata Electronics, who manufacture mechanics from scratch, including the enclosures for all of Apple’s gadgets except iPads.
“In its bid to deepen domestic value addition and build a local ecosystem (in India), Apple is expanding domestic procurement beyond iPhone and its key components,” one of the sources was quoted as saying in the report.
Industry experts consider this development significant for India’s electronic sector, as it helps establish a robust component system. This marks a substantial change, considering India has traditionally imported component and subassemblies from China and Vietnam for the past two decades.
With the emergence of a domestic component ecosystem, India is positioning itself as a crucial electronic manufacturing hub. Industry analysts project that the country could reach its component export target of 35-40 billion USD by 2030.
The Indian government plans to introduce a production-linked incentive scheme exceeding 3 billion USD to support component manufacturing and achieve the export target.
Apple presently manufactures only iPhone in India, with plans to commence AirPods production shortly. Component manufactured in India for other products are destined for assembly facilities in China and Vietnam. Apple’s decision to source more components from India aligns with its strategy to reduce reliance on China while expanding local value addition. This follows record iPhone exports from India, which exceeded 11.4 billion USD in early 2024.
With Apple leading the way, India’s electronics sector is poised for rapid expansion, positioning itself as a global hub for component manufacturing in the coming years./.
