Finland-headquartered Salcomp, a supplier to Apple plans to double its workforce in India to 25,000 over the next three years, a top company executive said on Monday. The firm is targeting annual revenue in India of at least $2 billion to $3 billion by 2025.
Praveen Paramasivam for Reuters:
The plans come as Apple shifts production away from China after its strict COVID-related lockdowns and restrictions, and with rising trade and geopolitical tensions between Beijing and Washington.
“The whole supply chain is now kind of looking at an alternative. And India is poised to be one of the best alternatives,” Sasikumar Gendham, managing director, Salcomp Manufacturing India, told reporters in Chennai city in southern India during an industry event. “Everyone knows that the whole world has been depending on this one nation (China) over the last few decades and it’s time to really diversify and decluster,” he added.
Gendham told Reuters that Salcomp will have a “significant role” in Apple’s supply chain.
Salcomp currently employs about 12,000 at its Chennai plant, where it makes mostly chargers, but also other smartphone parts.
Foxconn is also planning to quadruple the workforce at its iPhone factory in India over two years, Reuters reported last year.
MacDailyNews Take: MacDailyNews Take: It’s well past time to really diversify from China, but, hey, better late than never!
It’s smart for both Apple and Foxconn to diversify assembly outside of China. There’s no sense having all of your eggs in one basket. – MacDailyNews, April 2, 2019
Last September, J.P.Morgan analysts estimated last year that 25% of all Apple products would be made outside China by 2025, up from just 5% currently.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Shop The Apple Store at Amazon.
