Apple Supplier Eyes Bengaluru Facility for iPhone Production

Apple will be manufacturing in Bangalore
Preeti Bali / 11:51 am / March 18, 2024

Just months after Apple supplier Corning announced a new manufacturing plant in Tamil Nadu, another key player in Apple’s supply chain is setting its sights on India. Rayprus Technologies, a subsidiary of Foxconn, is in advanced discussions to establish a facility in Bengaluru.

“Rayprus is poised to join Foxconn’s industrial park near the Bengaluru airport,” reported The Economic Times, citing an anonymous source. “Talks are well underway for setting up a new production unit.”

Late last year, news emerged about Apple’s intensified discussions with component suppliers like Rayprus to bolster its manufacturing presence in India, the world’s second-largest smartphone market.

Foxconn Expands Indian Footprint

The Taiwanese tech giant Foxconn is spearheading a significant investment of $2.7 billion to develop a sprawling manufacturing complex in Bengaluru. Located within the IT investment region (ITIR) near the Kempegowda International Airport, this 300-acre facility is projected to become Foxconn’s largest in India upon completion, boasting the capacity to assemble 20 million smartphones annually.

While specific details regarding the scale and investment value of Rayprus’ venture haven’t been disclosed yet, the discussions are reportedly progressing steadily.

Rayprus Joins the Move East

As per Rayprus’ website, the company currently operates production plants in several locations across China, Taiwan, and Mexico. Their entry into the Indian market aligns with Foxconn’s growing presence in the country and Apple’s strategic shift to diversify its supply chain beyond China.

Geopolitical tensions between the US and China have prompted Apple to gradually move some of its production out of China. The Indian government’s production-linked incentive (PLI) schemes have proven to be a major draw for the tech giant’s pivot towards India.

Apple’s Supply Chain Takes Root in India

Several of Apple’s major suppliers, including Foxconn and Pegatron, already have established operations in India. Wistron, another supplier with a facility in Karnataka, was recently acquired by Tata Electronics, effectively making it Apple’s sole Indian vendor. The capacity of Tata Electronics to contract manufacture high-end electronics and accessories is anticipated to be greatly increased by this acquisition.

On a separate note, Apple India achieved a remarkable sales milestone in February, surpassing a staggering $8 billion (INR 66,000 Cr) in revenue. This marks the iPhone maker’s second consecutive year with over 40% sales growth, according to The Economic Times.

By the end of the current fiscal year in March, Apple India is projected to cross the INR 70,000 Cr mark in revenue, becoming only the second electronics brand in the country to achieve this feat, following its South Korean rival Samsung.

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