Karnataka government urges Apple, partners to start manufacturing beyond iPhones
What's the story
The Karnataka government is currently in discussions with Apple and its contract manufacturing partners, to expand their production ecosystem in the state. The aim of these talks is not only to enhance existing facilities but also to attract more component suppliers. This initiative is part of a broader strategy to create a comprehensive ecosystem capable of producing products beyond iPhones.
Supply chain
State IT Minister emphasizes on deepening supply chain
Priyank Kharge, the state's IT Minister, emphasized the importance of a robust supply chain in reducing product costs. He stated that attracting more Apple partners is crucial for this process. "Without the supply chain, it becomes expensive for them," Kharge told Moneycontrol. He further explained that even if products are destined for overseas markets, a comprehensive ecosystem is necessary to ensure cost-effectiveness.
Expansion
Foxconn's entry marks a significant step
The Karnataka government is facilitating Foxconn's entry into the state, marking a significant step in this expansion strategy. Young Liu, Chairman of Foxconn Technology Group, met with Chief Minister Siddaramaiah and Kharge in August to discuss their upcoming facility near Kempegowda International Airport. This new factory, known as Project Elephant, will be Foxconn's largest smartphone manufacturing plant outside China and is expected to generate over 40K jobs.
Ecosystem development
Karnataka aims to attract entire manufacturing ecosystem
Kharge highlighted the state's ambition to attract the entire manufacturing ecosystem, from packaging to high-value component production. He noted that companies like Foxconn and Tata are original equipment manufacturers (OEMs) capable of producing products for various companies. "So if we have an A, we will also get a B, a C, and a D," Kharge said, emphasizing on the potential diversity within this expanded ecosystem.
Product diversification
Apple's production expansion includes AirPods and iPads
Apple is significantly increasing its iPhone manufacturing capabilities in India, with plans to produce the iPhone 16 Pro and Pro Max models. The tech giant is also making strides to manufacture other products like AirPods and iPads. This move comes after a July report by Moneycontrol that suggested Apple may resume preparations for manufacturing iPads in India, following the government's efforts to attract more supply chains.