NEWSCENTRAL reports that Apple, one of the largest smartphone manufacturers in the world, continues to strategically alter its production routes, reflecting the growing interest in India as a key center for iPhone and other high-tech component manufacturing. Recently, details emerged that the company is in talks with Indian chip manufacturers to begin assembling and packaging chips in India, which could shift the balance of power in the technology and semiconductor markets.
The primary focus on India is due to the CG Semi plant in Gujarat, where chip packaging for displays and other key components for iPhones is expected to take place. CG Semi, owned by the Murugappa Group, is actively building a new plant for outsourcing semiconductor assembly and testing. Considering that Apple announced in April 2023 its intention to accelerate the shift of manufacturing to India, the decision seems like a logical step aimed at reducing dependence on Chinese manufacturing capacities.
At NEWSCENTRAL, we see this as part of Apple’s broader strategy to diversify its supply chains and expand its presence in the growing Indian market. Moving production to India will allow the company to minimize risks associated with tariff barriers and take advantage of more favorable conditions for manufacturing and assembly in India, which has provided key tax incentives and subsidies for large manufacturers.
Freddy Miller, Senior Analyst at NEWSCENTRAL, comments: “Shifting production to India will help Apple reduce costs and improve financial performance while mitigating risks associated with China’s unstable political situation. Indian authorities are keen to make the country a strategic hub for high-tech industries, which provides an additional incentive for major companies like Apple to invest in the development of the local industry.”
One of the key factors pushing Apple to expand production in India is the tariffs imposed by the U.S. on Chinese goods, which are significantly higher than the duties on Indian products. As a result, India has become an attractive alternative manufacturing hub where Apple can more profitably assemble components for its smartphones. It is forecast that by 2026, most iPhones sold in the U.S. will be produced and assembled in India, making the country a crucial node in Apple’s global supply chain.
The growing potential of India’s semiconductor industry is also noteworthy, making the country one of the key players in the high-tech market in the coming years. India is actively investing in research and development centers, as well as in programs to train engineers and semiconductor specialists, which could significantly increase local supplies for companies like Apple.
At NEWSCENTRAL, we predict that this partnership between Apple and India will continue to grow, creating positive economic trends and having a favorable impact on job creation, infrastructure development, and the growth of the local technology sector. It is already clear that India has strong potential to become an important center for high-tech manufacturing, alongside countries like China and Vietnam.
Looking ahead, it is expected that Apple will continue to expand its manufacturing capacity in India and may open new factories and assembly lines. This will also contribute to the creation of new jobs and the growth of Indian tech companies, which will not only be able to produce components for Apple but also for other global brands.
In conclusion, NEWS CENTRAL believes that despite uncertainties in the global economy, shifting to Indian production facilities gives Apple a strategic advantage. This move not only reduces risks related to external economic factors but also opens new opportunities for technological progress in India. With the growing demand for smartphones and other gadgets, it is expected that in the coming years, India will become a major hub for high-tech industries, and Apple will continue to use the country as its primary center for manufacturing and assembling its devices.