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US-China trade war forcing Apple suppliers to turn to India

Jan 29, 2019 by The Passage Team
US-China trade war forcing Apple suppliers to turn to India

Hon Hai Precision Industry Co, also known as Foxconn, will soon start assembling Apple’s flagship iPhones in its India unit based out of Sriperumbudur town in Tamil Nadu, sources said. The move can limit impact of the trade war between the US and China on the companies. Wistron Corp’s Bangalore unit is currently Apple’s sole assembler in India, making the lower-cost iPhone SE and iPhone 6S.

Foxconn, the primary contract manufacturers for Apple, already makes phones for Xiaomi in India. The Taiwanese multinational had said in a series of filings that USD 213.5 million has been injected into an Indian unit between September and January. Tamil Nadu’s Industries Minister M C Sampath had told Reuters earlier that Foxconn will invest USD 356 million to expand the Sriperumbudur plant, including investment in iPhone production.

It is not clear whether the production will be confined to assembly or include any component production. Both Apple and Foxconn have declined to comment to the media on the development. Pegatron, another Taipei-headquartered group, which accounts for about 30% of Apple’s assembly orders, said on Sunday that it was planning to build production capacity in India, apart from Vietnam and Indonesia.

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