Apple Eyes Indian Suppliers for iPhone Manufacturing Equipment Amid Major Production Shift

Apple Inc. (NASDAQ:AAPL) is reportedly in advanced discussions with Indian firms to locally source manufacturing equipment for its flagship iPhone production operations in India, according to a report by Business Standard.

The move underscores Apple’s growing efforts to diversify its supply chain and reduce reliance on Chinese manufacturing. A senior official from India’s Ministry of Electronics and Information Technology (MeitY) confirmed that the tech giant is actively exploring partnerships with domestic manufacturers to procure the capital equipment used in the assembly of iPhones.

Apple’s Strategic Pivot to India for iPhone Manufacturing

Apple plans to provide this India-sourced equipment to its local vendors, helping scale up iPhone production capacity within the country. The shift comes as part of Apple’s broader strategy to make India a global manufacturing hub for its products, especially in light of ongoing U.S.-China trade tensions and rising tariffs on goods made in China.

Although Apple will maintain its presence in China, the company has made clear its intention to produce a growing share of iPhones destined for the U.S. market directly from India—signalling a significant rebalancing of its global supply chain.

China Dependency Declines as India Emerges as a Key Manufacturing Base

China has historically been the leading producer of capital goods and manufacturing equipment used in Apple’s global production network. However, Apple’s initiative to source high-precision production tools from Indian companies reflects a marked shift in strategy—aimed at fostering resilient, regionally diversified supply chains.

India’s appeal lies in its growing electronics manufacturing ecosystem, government incentives under the Production Linked Incentive (PLI) scheme, and a large pool of skilled labour. These factors are positioning India as a critical alternative manufacturing base for global tech companies.

Foxconn, Tata, and Pegatron Drive India’s iPhone Manufacturing Surge

Apple’s production push in India has been significantly supported by key suppliers such as Foxconn, Pegatron, and Tata Electronics. These manufacturers have ramped up their operations in India over the last two years to meet Apple’s rising production targets.

Notably, Foxconn—the largest assembler of iPhones globally—recently announced plans to invest $1.5 billion to build a new iPhone component facility in Tamil Nadu, a southern Indian state that has become a hotspot for electronics manufacturing.

(Sources: investing.com, reuters.com, ChatGPT)