- Foxlink cable maker will start mass production for Apple later this year from its new plant in India.
- The development comes as Apple plans to stop giving chargers as well as earphones for the next-generation iPhones. However, the company will give cables with handsets.
- Local production of cables as well as the local assembly of iPhones will grant some tariff relaxation to the company.
Cheng Uei Precision Industry, a Taiwan-based cable and connector maker, will start mass production for Apple later this year from its new plant in India, sources familiar with the matter told Bloomberg. The cable supplier, also known as Foxlink will set up a factory in Chennai.
Foxlink seems to have added a subsidiary in Andhra Pradesh in March this year. "To establish a new subsidiary company in India, the initial investment amount is 160 million rupees," Foxlink said on its website. The development was first noted by Medianama. Cheng Uei's chairman TC Gou is the brother of Foxconn founder Terry Gou. Taiwan-based Foxconn, Wistron and Pegatron, Apple's major assembly partners have all set up either a subsidiary or an iPhone assembly plant in India.
As per Reuters, these companies plan to invest a total of almost $900 million in India in the next five years to tap into a new production-linked incentive (PLI) plan.
These suppliers are looking at expanding manufacturing to India in the backdrop of the US-China trade war. The development comes as Apple will stop giving chargers as well as earphones for the new generation iPhones. However, the company will still provide cables, the kind Foxlink is likely to supply. The local production of cables along with the assembly of iPhones in India is likely to grant tariff or taxation relief for Apple.
While Foxconn, Pegatron and Wistron make devices for companies other than Apple globally, Wistron's arm in India currently assembles only iPhones. Wistron, which assembles roughly 2,00,000 second-generation iPhone SEs per month in India, plans to scale that up to 4,00,000 a month by the end of the year, sources told the Mint as Apple looks to cater to export demand for the device. That plan is expected to create roughly 10,000 jobs, as per the report.
Foxconn has applied to invest about 4,000 crore, while Wistron and Pegatron have committed to invest close to 1300 crore and 1200 crore, respectively, under the PLI plan, according to reports.