Since the United States of America announced expanded restrictions on semiconductor exports to China, most US tech brands have been striving with the negative effect of the ban.
Just today, reports reveal that more than a dozen of Apple’s Chinese suppliers have been given preliminary approval by India to grow there, assisting the tech giant in its quest to expand the geographic scope of its assembly network outside China.
Apple’s Chinese Suppliers Get Indian Government Approval
According to an insider familiar with the matter, AirPods and iPhone assembler Luxshare Precision Industry and a unit of lensmaker Sunny Optical Technology Group are among the companies gaining approval from the Indian government.
The company would probably still be required to recruit local Indian joint venture partners even after receiving permits from important Indian ministries, but this is a step toward complete approval for operations in India.
However, with the trade restrictions and manufacturing bottlenecks associated with Covid exposed to the dangers of excessive concentration in one nation, Apple and other US electronics manufacturers are attempting to reduce their reliance on China.
The clearances show that, despite rising political tensions between the Asian neighbors, India is permitting more Chinese businesses to expand its electronics manufacturing industry.
Growing India’s Manufacturing Sector
Growing India’s manufacturing sector is a national priority for Prime Minister Narendra Modi, who has offered financial incentives and government support for business growth plans.
With partners like Hon Hai Precision Industry making more iPhones in the nation for the most recent generation than ever before, Apple has played a key role in that effort.
According to the sources, Apple named about 14 vendors whose services it needed to expand its footprint in India and they are now getting the go-ahead from India.
Although Apple still assembles the great majority of its devices in China, it has recently begun producing more of them in India with the help of Taiwanese partners.
Even though India is currently permitting the expansion of some Chinese suppliers there, people claimed that some are still being turned down. Apple sent a list of roughly 17 suppliers to Indian authorities, and several of them were rejected, including at least one because of ties to the Chinese government.
Additionally, the insider source added that Han’s Laser Technology Industry Group and Shenzhen YUTO Packaging Technology are among those being cleared.