Apple Inc might make one out of four iPhones in India by 2025, JPMorgan & Chase Co analysts said yesterday, as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country.
JPMorgan expects Apple to move about 5 percent of iPhone 14 production from late this year to India, which is the second-biggest smartphone market in the world after China.
It is also estimating that about 25 percent of all Apple products, including Mac, iPad, Apple Watch and AirPods, would be manufactured outside China by 2025 from 5 percent currently.
The US company has bet big on India since it began iPhone assembly in the country in 2017 via Wistron Corp (緯創), and later with Pegatron Corp (和碩) and Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團) internationally, in line with the Indian government’s push for local manufacturing.
The COVID-19 pandemic hampered supply chain relocation plans for businesses, but with restrictions easing, more companies, including Apple, are reaccelerating these efforts this year.
“Taiwanese vendors such as Hon Hai and Pegatron play a key role in the relocation to India. In the medium to long term, we also expect Apple to qualify local India manufacturing suppliers,” said JPMorgan analysts led by Gokul Hariharan, who is rated 4 out of 5 for estimates accuracy.
A Bloomberg report earlier this month said that Indian conglomerate Tata Group was in talks with Wistron to establish a joint venture to assemble iPhones in the country amid Apple’s plans to cut production lag with China.
In other news, the Indian government yesterday raised fiscal support for new semiconductor facilities to cover 50 percent of project costs and said it would remove a ceiling for maximum permitted investment for display manufacturing as it moves to boost local production.
The announcement comes as Indian Prime Minister Narendra Modi’s government seeks to attract more big-ticket investments under a US$10 billion incentive plan for chip and display production, aiming to make India a key player in the global supply chain.
“On the basis of discussion with potential investors, it is expected that work on setting up the first semiconductor facility will commence soon,” a government statement said.
The government had previously agreed to cover between 30 and 50 percent of the cost of setting up new display and chip plants.
The government yesterday said it would also cover 50 percent of the capital expenditure required to set up semiconductor packaging facilities.
Last week, oil-to-metals conglomerate Vedanta Ltd and Hon Hai signed a pact with India’s Gujarat to invest US$19.5 billion in the western state to set up semiconductor and display production plants.
At a red-brick factory in the German port city of Hamburg, cocoa bean shells go in one end and out the other comes an amazing black powder with the potential to counter climate change. The substance, dubbed biochar, is produced by heating the cocoa husks in an oxygen-free room to 600°C. The process locks in greenhouse gases and the final product can be used as a fertilizer, or as an ingredient in the production of “green” concrete. While the biochar industry is still in its infancy, the technology offers a novel way to remove carbon from the Earth’s atmosphere, experts have said. Biochar could
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares yesterday rallied 2 percent on the local stock market after Nvidia Corp said the contract chipmaker would be the sole supplier of its latest graphics processing chip, defusing speculation that Intel Corp would get a share of the orders. TSMC’s share price climbed to NT$562, snapping a three-day losing streak. It outperformed the benchmark index’s 1.18 percent gain. Net purchases by foreign institutional investors yesterday totaled 8.37 million shares, reversing net sales of 2.9 million shares on Thursday. The rebound follows Nvidia’s announcement that its latest artificial intelligence graphics processing unit (GPU), codenamed H100, would
WEAK PROSPECTS: The contract electronics manufacturer expects revenue to drop this quarter due to product transitions and a high comparison base a year earlier Hon Hai Precision Industry Co (鴻海精密), a major iPhone assembler, yesterday posted a second straight monthly growth in revenue to NT$45.07 billion (US$1.47 billion) last month, thanks to a pickup in smartphone demand. Last month’s revenue marked its best performance since January. On an annual basis, sales dipped 9.45 percent, the smallest annual decline since February, compared with NT$49.78 billion in May last year. Revenue from smart consumer electronics products, primarily iPhones and smartphones for other brands, delivered a “strong” double-digit, month-on-month growth in May because of customers’ pull-in, Hon Hai said in a company statement. That was the only business category
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, on Monday issued a statement about the balanced life environment it provides its employees, in response to a Fortune article at the weekend in which several former and current employees in the US were quoted complaining about the company’s “brutal” corporate culture. In the statement, TSMC said average work hours at the company have not exceeded 50 hours a week over the past two years with only a few exceptions, such as when the company introduces a new technology process or speeds up building a new plant. In such situations,