Apple's Several Chinese Suppliers Get Assembly Clearance In India: Report

In another boost to Apple manufacturing in India, the tech giant's several Chinese suppliers in the country have got initial clearance, the media has reported.

In another boost to Apple manufacturing in India, the tech giant's several Chinese suppliers in the country have got initial clearance, the media has reported. Chinese suppliers such as Luxshare Precision Industry Co., which is a unit of lensmaker Sunny Optical Technology Group Co. and also an AirPods and iPhone assembler are among the Chinese firms gaining approval in India, says a report by news agency Bloomberg.

The clearances from key ministries are a step toward full approval for expansion in India, and the companies will still likely to be required to find local Indian joint venture partners, the Bloomberg report added, citing people familiar with the development.

It should be noted that the clearances also indicate that India is allowing more Chinese firms to build out its tech manufacturing sector, even as political tensions between the Asian neighbours have intensified.

This development comes amid Apple's continuous efforts to reduce dependency on China and to expand production capacity in other regions, in the wake of the tense geopolitical situation and uncertainty. The iPhone maker's biggest contract manufacturer and partner, Taiwan's Foxconn Technology Group and Pegatron Corp. have included Southeast Asia in their expansion plans for this year, recent reports said.

Apple also has plans to shift from Samsung and LG and make its own custom displays for devices by as early as 2024. The Cupertino-based tech giant is aiming to start changing the display in the highest-end Apple Watches by the end of 2024, Bloomberg recently reported. This is Apple's bid to reduce its dependency on display technology partners such as Samsung and LG and introduce more in-house components.

Meanwhile, Taiwan Semiconductor Manufacturing Company Limited, popularly known as TSMC, which is one of the key iPhone makers for Apple has said it would more than triple its planned investment at its new chip manufacturing plant in the US state of Arizona to $40 billion, among the largest foreign investments in US history.

To recall, earlier in November 2022, Apple said it is planning to use chipsets from a factory in the US state of Arizona starting in 2024, in an attempt to reduce its dependency on Asian production, which has been disrupted due to workers' unrest in China. The tech giant is also planning to source chips from Europe in the future.