Apple Expands Suppliers Network in India to Counter China’s Worker Recall

Apple has reportedly started partnering with Indian companies to source machinery for iPhone manufacturing. This comes as the company expands its production in India but faces challenges due to the recall of Chinese workers.

According to Moneycontrol, around 35 Indian companies can produce machinery used by Apple suppliers such as Foxconn and Tata Electronics for iPhone production. Citing sources, the news portal said Cupertino-based firms have partnered with about half of these companies. Names include Titan Engineering and Automation Ltd (TEAL), Jyoti CNC Automation, Bharat Forge, and Wipro.

Some smaller foreign suppliers have also set up units in India to support Apple’s manufacturing needs.

Producing machinery for iPhones requires access to IP details that are only available from Apple. The report says the company is now sharing this information with Indian partners.

Apple reportedly plans to significantly expand its network of partners in India over the next two to three years. These partners are helping reduce logistical risks, lower operational costs, and build a more resilient supply chain. They are also assisting in miniaturising capital equipment for electronics, particularly smartphones.

The move comes as China restricts the supply of such equipment to India, affecting Apple suppliers like Foxconn, Tata Electronics, and Jabil. India remains heavily reliant on Chinese machinery, which often requires on-site support from Chinese experts. Earlier this year, reports indicated that Chinese workers were recalled by Beijing, disrupting India’s production expansion. A key concern was that only these technicians knew how to operate the machinery.

Apple is aware of this challenge and is taking steps to address it, which continues to escalate periodically, a source told Moneycontrol.

Apple India Plan

Apple plans to expand production in India to mitigate risks posed by US tariffs. Earlier this year, Tim Cook said that going forward, most iPhones exported to the US will be sourced from India. Currently, Foxconn and Tata Electronics produce iPhones across five factories.

China still dominates Apple’s supplier network, accounting for 157 of 470 units in 2023, followed by Taiwan with 48.

Apple vendors in India have achieved over 20% domestic value addition, but the government aims to increase this to 30–40% to match China. The company is also exploring joint ventures with Indian and other Asian partners for local production of critical components such as displays and camera modules. Foxconn’s subsidiary, Yuzhan Technology, is setting up a ₹13,180-crore ($1.5 billion) display module assembly unit in Tamil Nadu.