Apple partner Foxconn wants to make computers in India

Apple didn’t make that Mac in India

Apple partner Foxconn is among 38 tech firms asking India’s government for subsidy packages as they seek to make computers there. That follows India’s move earlier this month to impose and then delay a punitive tariff scheme on new computers made outside the nation.

Getting support from the government

Apple’s partner isn’t alone. Asus, Dell, and HP have all submitted applications to make computers in India under the all new production-linked inventive (PLI) scheme for IT hardware.

While Apple isn’t listed as making an application, that’s not such a surprise, given it gets partners to make its products on its behalf. At least one Indian official pointed out that Apple has already built up manufacturing in India and that it will take time to begin manufacturing other products there.

For India, the game is all about economic benefits and jobs. The government estimates it will create perhaps 75,000 jobs by convincing PC makers to begin making kit there. Ashwini Vaishnaw Tweeted, “Big thanks to IT hardware industry for your commitment and confidence.”

IT hardware industry captains are all set to make in India.👍 pic.twitter.com/G6TtW5AsfR

— Ashwini Vaishnaw (मोदी का परिवार) (@AshwiniVaishnaw) August 31, 2023

Big tech investments in India

“We have received an excellent response for the production of laptops and PCs under the IT hardware PLI scheme,” he added, saying he expects in the region of 3.5 trillion rupees in value of production and investment of around 2.5 trillion Indian Rupees (which sounds a little high).

You could argue that the nation’s recent decision to slap tariffs on PCs coming into the country may have focused the mind of tech firms on making computers there. You may have a point – just two companies had applied to make PCs under the scheme before those tariffs were announced.

The government raised the incentive at the same time.

It is inevitable that some of the challenges faced by companies seeking to set up factories to do more than assembly in India will involve deployment of component manufacturing facilities. These are coming, it seems, with recent news claiming Foxconn plans a billion dollar iPhone component facility there.

More recently we heard similar reports that Apple is now working with suppliers to attempt to get more components made in that nation. All of these moves reflect a company building up its supply chain to become less reliant on China while also being more resilient to challenge and change. All the same, this kind of shift in production won’t happen overnight.

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