Japanese iPhone component maker Murata Manufacturing is eyeing Indian electronics market and considering to set up some of its production unit in the country, according to the Bloomberg report. The company’s move comes at a time when firms are moving away from China.
“It’s too early for us to build an integrated production facility in the India, because the infrastructure for inputs such as power hasn’t reached the level we need, but we wanted to move early to build some capacity there as our customers shift production,” said Murata’s President Norio Nakajima, according to the Bloomberg.
Additionally, Murata’s President Norio Nakajima said the increasing demand for electronics in India coupled with new incentives to boost domestic manufacturing can be a factor for the company to expand in the country. Presently, the Kyoto-headquartered firm is planning to build some capacity and not an integrated production unit in India, he added.
“It’s too early for us to build an integrated production facility in India, because the infrastructure for inputs such as power hasn’t reached the level we need, but we wanted to move early to build some capacity there as our customers shift production,” he mentioned.
Apple’s Expansion Spree
Murata isn’t the only iPhone parts manufacturer that is aligning itself with the changing global supply chain and eyeing India as an alternative to China. According to an earlier Reuters report, Taiwanese contract manufacturer Pegatron sold 60% of its stake to Tata Electronics and formed a joint venture to boost iPhone manufacturing in India. Foxconn, Apple’s largest component manufacturer, is making huge investments in India and expanding its facility in Tamil Nadu, as Apple aims to reduce dependence on China.
The shift is also triggered by US President Donald Trump’s recent tariff imposition on imports from several countries, including China and fueled by trade uncertainty between the US and China.
Moreover, Apple isn’t just eyeing manufacturing in India. The tech giant fueled with rising demand for Apple products in the country is also increasing its efforts to boost sales in India. Last year the company opened its first two shops in India and now recently, Apple CEO Tim Cook announced during the earnings call to launch four new shops in the country.
