In a strategic move to diversify its supply chain away from China, Apple Inc is reportedly strengthening the amount of manufacturing value being added in India.

The tech giant is said to be in talks with key players, including US-based Flextronics and Jabil, as well as Karnataka-based Aequs, to boost the production of various components within India.

What Happened: Apple is seeking to deepen partnerships with non-Chinese global and Indian vendors, according to a Business Standard report.

The company is exploring potential collaborations with firms in Haryana, Uttar Pradesh and Karnataka to manufacture components, localising production and enhancing value addition within India.

According to the report, US-based electronics manufacturers Flextronics and Jabil and India’s Aequs are in talks to produce power equipment, manufacture plastic enclosures for AirPods and supply non-iPhone enclosures, respectively.

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Apple’s international vendors are also engaging with Tata Group firms, including Tata Electronics, to explore the possibility of manufacturing capital equipment. This is crucial for increasing the level of domestic value addition in Apple’s Indian operations. The tech giant is also scouting for Indian partners for joint ventures in the production of displays and camera modules.

In 2022, Apple solidified a partnership with Japanese mobile lithium-ion phone cell battery maker TDK, becoming its first anchor client in India. TDK has since established a production facility in Gurugram, with investment figures undisclosed.

More recently, the Motherson group has reportedly been in talks to join the Apple supply chain network in India, via a joint venture with Hong Kong-based BIEL Crystal Manufactory.

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