Apple is currently on the hunt for new suppliers based in India, Japan, and South Korea to provide crucial components to its contract manufacturers in the country. This move comes after the tech giant faced delayed government approvals for imports from existing Chinese suppliers, leading to a hold-up in the production of its flagship iPhones and iPads in India.
According to a report in The Economic Times, Apple is now looking for component makers who can establish “just-in-time” supply chains in India to speed up local production. The delayed approvals affect batteries, camera lenses, chargers, and other necessary equipment for Apple’s devices, primarily supplied by Chinese companies.
In January, 17 Chinese companies applied for government clearances to set up manufacturing facilities in India, but only 14 were granted initial approval. Four companies’ applications remain indefinitely delayed, while six have reportedly lost interest in manufacturing in India. An additional four companies’ status remains uncertain.
A senior government official expressed concerns regarding national security, citing the companies’ Chinese origins as a potential issue. Environmental clearances, a state subject, are granted by expert committees, further complicating the approval process.
Of the 14 companies that received initial approvals, notable names include camera lens equipment maker Sunny Optical Technology Group and Han’s Laser Technology Industry Group, AirPods manufacturer Luxshare-ICT, and capacitor chipmaker ON Semiconductor Shenzhen China. Notably, Luxshare-ICT moved its manufacturing unit to Vietnam due to the delays in approvals.
This development comes as Apple continues to expand its presence in the Indian market, aiming to secure reliable local suppliers for a smooth production process. While Apple battles these challenges, the search for new component makers progresses as the tech giant works to solidify its position in India.