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Apple is reportedly looking for new suppliers which can provide crucial components to its contract manufacturers in India. According to a report in Economic Times, the company is looking for Indian, Japanese and South Korean component makers.
This is said to come after delayed government approvals for imports from existing suppliers — primarily of Chinese origin — of batteries, camera lens, chargers and other equipment required to make its flagship iPhones and iPads in India.”With imports thus delayed due to various approvals pending at both the central and state levels, Apple is now looking for suppliers who can set up “just-in-time” supply chains in India to expedite local production,” said the report quoting sources.
In January this year, about 17 Chinese companies that supply components for Apple’s devices applied for government clearances to set up manufacturing facilities in the country. While Fourteen were granted initial approval, the applications of four companies has been indefinitely delayed. Of these 17, six are said to have indicated that they are no longer interested in making in India. And the status of the remaining four companies at present is not known.
“National security is an issue”
“The approvals (in January) were only initial approvals. Because most of these companies have Chinese origin, national security is also an issue. Those approvals have to be carefully given. Issues of environmental clearances, which are a state subject, are given by expert committees,” a senior government official said.
However, another government official told the publication that it is wrong to say we have turned down the application of any of these companies. All government approvals have to be given after careful consideration of all factors.
List of 14 companies that got approvals
The 14 include camera lens equipment maker Sunny Optical Technology Group and Han’s Laser Technology Industry Group, airpods maker Luxshare-ICT and capacitor chipmaker ON Semiconductor Shenzhen China. Luxshare-ICT moved its manufacturing unit to Vietnam owing to the delay in approvals, another person close to the development said.
This is said to come after delayed government approvals for imports from existing suppliers — primarily of Chinese origin — of batteries, camera lens, chargers and other equipment required to make its flagship iPhones and iPads in India.”With imports thus delayed due to various approvals pending at both the central and state levels, Apple is now looking for suppliers who can set up “just-in-time” supply chains in India to expedite local production,” said the report quoting sources.
In January this year, about 17 Chinese companies that supply components for Apple’s devices applied for government clearances to set up manufacturing facilities in the country. While Fourteen were granted initial approval, the applications of four companies has been indefinitely delayed. Of these 17, six are said to have indicated that they are no longer interested in making in India. And the status of the remaining four companies at present is not known.
“National security is an issue”
“The approvals (in January) were only initial approvals. Because most of these companies have Chinese origin, national security is also an issue. Those approvals have to be carefully given. Issues of environmental clearances, which are a state subject, are given by expert committees,” a senior government official said.
However, another government official told the publication that it is wrong to say we have turned down the application of any of these companies. All government approvals have to be given after careful consideration of all factors.
List of 14 companies that got approvals
The 14 include camera lens equipment maker Sunny Optical Technology Group and Han’s Laser Technology Industry Group, airpods maker Luxshare-ICT and capacitor chipmaker ON Semiconductor Shenzhen China. Luxshare-ICT moved its manufacturing unit to Vietnam owing to the delay in approvals, another person close to the development said.
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