Amid efforts to diversify its manufacturing base away from China, Apple is bolstering its investments in India, reportedly engaging in advanced discussions with Tata Group's Titan Company and Murugappa Group. The aim is to collaborate on assembling sub-components for phone camera modules, aligning with India's "Make in India" initiative and enhancing its role in the global supply chain.
The absence of Indian suppliers for the sophisticated iPhone camera module underscores the potential significance of this move, potentially reducing Apple's reliance on Chinese suppliers.
Both Titan and Murugappa boast extensive experience in high-precision manufacturing, positioning them as valuable partners for Apple's supply chain ambitions.
Furthermore, both companies have already qualified for government incentives under the PLI scheme, further incentivizing their involvement in setting up chip assembly units in India.
While neither Tata nor Murugappa Group has provided immediate comments on the reports, their previous endeavors in the electronics manufacturing sector suggest a proactive approach towards technological partnerships.
In a notable development, Tata Group acquired Wistron's India operations last year, signaling its intent to expand its presence in the electronics manufacturing landscape. Additionally, reports indicate Tata's interest in acquiring Pegatron's iPhone manufacturing facility near Chennai, alongside plans to establish a significant iPhone assembly plant in Tamil Nadu's Hosur.
The recent foundation stone laying ceremony by Prime Minister Narendra Modi for three semiconductor projects worth Rs 1.25 lakh crore underscores India's commitment to bolstering its semiconductor and electronics manufacturing capabilities. Notable among these projects is the chip fabrication facility at the Dholera Special Investment Region in Gujarat, spearheaded by Tata Electronics Private Limited with a substantial investment exceeding Rs 91,000 crore. Additionally, the Tata Group's initiative to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Assam signifies a concerted effort to enhance India's semiconductor ecosystem.
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