Cheng Uei Precision Industry, a Taiwan-based cable and connector manufacturer, will begin mass production for Apple later this year from its new factory in India, sources familiar with the matter told Bloomberg. The cable provider, also known as Foxlink, will open a factory in Chennai.
Foxlink appears to have added a branch in Andhra Pradesh in March of this year. “To create a new subsidiary in India, the initial investment amount is 160 million rupees,” Foxlink said on its website. The development was first noticed by Medianama. Cheng Uei TC Gou chairman is the brother of Foxconn founder Terry Gou. Foxconn, Wistron and Pegatron, based in Taiwan, Apple’s major assembly partners have all set up a subsidiary or iPhone assembly plant in India.
According to Reuters, these companies plan to invest a total of nearly $ 900 million in India over the next five years to tap into a new production-related incentive plan (PLI).
These suppliers are looking to expand production in India against the backdrop of the US-China trade war. The development comes when Apple stops providing chargers and headsets for the iPhone of the new generation. However, the company will still supply cables, the kind Foxlink will likely supply. It is likely that the local production of cables together with the assembly of iPhone in India grant tariff or tax relief for Apple.
While Foxconn, Pegatron and Wistron make devices for companies other than Apple globally, Wistron’s arm in India currently only assembles iPhone. Wistron, which assembles about 2 million second generation iPhone SE per month in India, plans to scale it up to 4,00,000 per month by the end of the year, sources told the Mint as Apple tries to meet export demand for the device. According to the report, the plan is expected to create around 10,000 jobs.
Foxconn has asked to invest around 4,000 crore, while Wistron and Pegatron have committed to invest around 1300 crore and 1200 crore, respectively, under the PLI plan, according to reports.
Taiwan-based cable manufacturer and supplier Cheng Uei Precision Industry, also known as Foxlink, will soon open a factory in Chennai, as per reports.
- Cable maker Foxlink will begin mass production for Apple later this year from its new factory in India.
- The development comes as Apple plans to stop providing chargers and headsets for the iPhone next generation. However, the company will provide cables with the phones.
- Local cable production and local assembly of iPhone they will guarantee the company a certain tariff easing.