Apple’s diversifying supply chain bets big on India
Here’s a bunch of old chargers
Yet more signs of accelerating Apple supply chain deployments in India as Finland’s Salcomp has announced plans to double its workforce there to 25,000 over the next three years.
Apple’s supply chain is betting big on India
Salcomp says it is aiming to generate up to $3 billion per year in revenue from India by 2025. It’s yet another move that underlines the accelerating rate at which Apple suppliers are prioritizing business setup in India.
Sasikumar Gendham, managing director, Salcomp Manufacturing India stressed that the whole supply chain is now seeking to diversify beyond China.
“The whole world has been depending on this one nation over the last few decades and it’s time to really diversify and decluster,” he said.
What Salcomp does now
The company, which makes smartphone components, at present employs around 12,000 staff in Chennai where it has a facility it purchased for $279 million from Finland’s Nokia in 2019. The company is also setting up a housing complex for around 15,000 people near its factory and already has other facilities in India.
Gendham apparently told Reuters his company will have a significant role in the Apple supply chain, which is an interesting insight.
The company’s main products seem to be power supplies IoT sensors and “precision structural parts and modules, 5G RF parts, and magnetic materials,” according to its website.
Apple ultimately aims to make up to 50% of its smartphones in India, according to Ming-Chi Kuo, and is expected to make 25% of them in India by 2025, according to JP Morgan. India accounted for 10-15% of Apple’s production capacity at the end of 2022.
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