Apple Inc. is accelerating its efforts to expand and diversify its production capabilities in India, seeking partnerships with local manufacturers to enhance value addition and reduce dependency on Chinese suppliers. The move aligns with Apple’s broader strategy to fortify its global supply chain and mitigate risks associated with geopolitical tensions and supply disruptions.

Karnataka-based Aequs, an electronics manufacturing services (EMS) provider, is in negotiations with Apple to supply enclosures for non-iPhone products. The company is also exploring collaborations with other firms across Haryana, Uttar Pradesh, and Karnataka to broaden its manufacturing footprint.

Apple is actively pursuing partnerships with both Indian and non-Chinese vendors. American companies such as Flextronics and Jabil are being considered for significant roles in the Indian supply chain. Flextronics is under review for producing power equipment, while Jabil is eyed for manufacturing plastic enclosures for AirPods.

Additionally, Apple’s existing international vendors are strengthening ties with Indian partners. Tata Group, already a key partner through Tata Electronics, is exploring further opportunities with Apple. This includes potential joint ventures for producing capital equipment and critical components like displays and camera modules.

In 2022, Apple further cemented its Indian supply chain by partnering with Japanese battery maker TDK, which established a production facility in Gurugram. More recently, the Motherson Group is negotiating to join Apple’s network through a joint venture with Hong Kong-based BIEL Crystal Manufactory to produce components.

Apple’s current iPhone assembly vendors in India—Tata Electronics, Pegatron, and Foxconn—have achieved a local value addition of 12-14% over the past three years. The company expects this figure to rise with new partnerships and initiatives. The Indian government’s electronics production-linked incentive (PLI) scheme aims to achieve 40% value addition by 2027.

Amid increased tensions between India and China, particularly after the Galwan Valley border clashes and new FDI policies under Press Note-3, Apple has shifted focus to non-Chinese suppliers. This strategy has already seen progress, with Tata Electronics beginning iPhone production and plans for further expansion, including a Rs 6,000 crore investment in a new factory in Hosur, set to commence production by November.