Apple In Talks With Over 40 Indian Firms To Build Local Supply Chain Ecosystem, Reduce Dependence on China: Report

Apple is reportedly in talks with several Indian firms as part of the iPhone maker's efforts to build its own supply chain ecosystem in the country.

The US tech giant has engaged more than 40 Indian companies, including large conglomerates, IT firms, and electronics manufacturing service providers (EMS) to create an ecosystem of Indian suppliers for components used in products like iPhones, MacBooks, iPads, and AirPods.

The iPhone maker has roped in major tech companies like Dixon Technologies, Amber Electronics, HCLTech, Wipro, and Motherson Group, Moneycontrol reported.

Apple heavily relied on Chinese suppliers until 2020, but the firm has since tried to move production to other regions, including India and Vietnam. 

The company is reportedly in talks with firms in India to explore the possibility of setting up joint ventures with Chinese, South Korean, Taiwanese and Japanese companies to produce key components like displays and camera modules locally.

"The activity is on for some time at a larger level. Apple has a big team that has been discussing with Indian companies, including large conglomerates. They have met all large EMS companies in India, including Dixon and Amber. They are also talking to some global players,” a source familiar with Apple’s plans was quoted as saying by Moneycontrol.

The source also told the publication that the reason for these discussions was that Apple's Chinese suppliers were reluctant to invest in the country "due to existing cases against other Chinese companies" and visa issues.

Another source cited in the report said Apple is working on the shortlisting its potential Indian partners. 

The iPhone maker is looking to source crucial components from these companies owing to delayed government approvals for imports from existing China-based suppliers of batteries, camera lenses, chargers, and other components required for its products in India, the report said.

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