In a strategic move to diversify its production base and reduce reliance on China, Apple is intensifying its efforts to ramp up iPhone manufacturing in India. A critical step in this expansion is localizing the supply chain, particularly for intricate components like camera modules. Currently, Apple has to import these components, but the company is keen on changing this dynamic.
Sources close to the development have revealed to the Economic Times that Apple is in advanced negotiations with two major Indian conglomerates: the Murugappa Group and Tata's Titan Company. These discussions focus on setting up facilities that could assemble and possibly manufacture sub-components for iPhone camera modules within India.
Murugappa Group, which holds a significant stake in camera module manufacturer Moshine Electronics, seems particularly well-positioned to meet Apple's needs. This acquisition could provide Apple with a ready-made infrastructure for camera module production, including the potential in-house manufacture of critical image sensors.
On the other hand, Titan Company, part of the Tata conglomerate, is already skilled in producing high-precision components for watches and jewelry, which could easily be adapted to meet the demands of high-quality camera module production.
Both companies are also recipients of government incentives under India’s push to establish a semiconductor and component manufacturing ecosystem. Notably, Tata is developing an $11 billion chip facility, which underscores the significant investment in the tech manufacturing sector in India.
Apple's decision will likely be finalized within the next five to six months, marking a significant step in its strategy to enhance its production capabilities in India while reducing logistical complexities and costs associated with international component shipping.
