The latest lockdown in China as part of its zero-covid policy saw workers from Apple’s biggest factory in the world situated in Zhengzhou make a run to avoid being trapped. The facility which supplies almost half of the world’s iPhones is on lockdown, while China’s covid norms that time and again hit production aren’t going anywhere with Xi Jinping’s firm grip on power. Apple has read the writing on the wall and decided to move out of China, by commissioning a second manufacturer to make iPhone 14 in India, after Taiwan-based Foxconn.
Chennai evolving into an iPhone hub?
Pegatron, another Taiwanese electronics major which assembles Apple handsets, will now be making the latest version of iPhone at a plant in Chennai. The firm which employs 7000 workers at the factory in Tamil Nadu, had already started manufacturing iPhone 12 this year, and is one of three iPhone makers in India apart from Foxconn and Wistron. The announcement comes alongside reports of Tata scaling up its capacity to make iPhone components in Tamil Nadu, by increasing the number of workers to 45000.
India and Vietnam thrive as China clamps down
Before Apple, South Korean giant Samsung had also decided to shift operations out of China to India, and other firms are eyeing a similar move as restrictions make it hard to operate in the manufacturing hub. The only other country that India faces competition from is Vietnam, which Apple is eyeing for production of its smart watches and iPads. On the other hand Chinese brands such as Xiaomi have also turned to local manufacturing for Indian markets, and have faced penalties for sending money back to China in the name of royalties.
Tata and Vedanta eyeing partnerships
With Apple’s increased interest in India, Vedanta which is already a partner of Foxconn in chipmaking operations, also has plans to set up an iPhone manufacturing hub in Maharashtra. India’s major conglomerate Tata is also in the race to become the first Indian Apple manufacturer, with eyes on a collaboration with Pegatron or Wistron.
