Apple Boosts 'Make in India': iPhone 16 Batteries to Roll Out from Indian Facilities

In a strategic move to diversify its supply chain and decrease reliance on China, tech giant Apple is set to escalate iPhone 16 battery manufacturing in India. 

Reports indicate that the company has urged its suppliers to prioritize production in the country, with some manufacturers being encouraged to establish new facilities, while others are instructed to scale up existing operations. 

This move aligns with Apple's broader business strategy and geopolitical considerations amid the ongoing tech tensions between the United States and China.

Battery Manufacturing Initiatives:

The Financial Times reveals that Apple is actively working to shift a significant portion of iPhone 16 battery manufacturing from China to India. 

To achieve this, the company has directed key component makers, such as China's Desay and Taiwan's Simplo Technology, to either set up new manufacturing units in India or expand their current facilities. 

Notably, a Japanese supplier, TDK, has already taken a step towards this objective by initiating a sprawling 180-acre facility in the state of Haryana, India.

Deputy Minister for Information Technology, Rajeev Chandrasekhar, highlighted TDK's investment plans, emphasizing the positive impact on the 'Make in India' initiative. 

The move is largely attributed to Prime Minister Modi's Production Linked Scheme, which incentivizes foreign companies to manufacture in India, contributing to the nation's economic growth.

Business and Ideological Motivations:

Beyond the economic incentives, Apple has additional motivations to diversify its production away from China.

The ongoing geopolitical tensions between the United States and China, uncertainties stemming from the global pandemic, and concerns over the working conditions of Chinese laborers have influenced Apple's decision-making. 

By establishing a more significant presence in India, Apple aims to mitigate these risks and enhance its global supply chain resilience.

Collaboration with Indian Companies:

Several prominent players in the Indian electronics manufacturing sector are set to play crucial roles in Apple's endeavor. Tata Group, for instance, is reported to double iPhone production at its facility in Hosur, India. 

Additionally, Foxconn, a key assembler for Apple, has announced a substantial $1.5 billion investment in a new factory in India. 

These developments, along with Tata Group's acquisition of a 100% stake in Wistron's India unit, demonstrate the strengthening of the electronics manufacturing ecosystem in India.

Economic Impact and Job Creation:

As Mr. Chandrasekhar notes, the collective efforts of TDK, Desay, Simplo, Foxconn, and Tata Group will not only bolster the electronics manufacturing ecosystem in India but also contribute to job creation and income generation.

This aligns with the broader goals of the 'Make in India' initiative, emphasizing the positive economic impact of attracting foreign investment and fostering domestic manufacturing capabilities.

Verdict:

Apple's decision to enhance iPhone 16 battery manufacturing in India signifies a significant step towards diversifying its supply chain and reducing dependence on China. 

This strategic move aligns with both business considerations and broader geopolitical dynamics. 

With the collaborative efforts of international suppliers and Indian manufacturers, the initiative is poised to contribute to the growth of the electronics manufacturing sector in India, creating job opportunities and strengthening the nation's position in the global supply chain.