Apple to Begin Assembling First Made-in-India iPhone Pro Models This Year
In a significant shift in its global production strategy, Apple is set to start assembling its iPhone 16 Pro models in India, marking the first time the tech giant will produce its Pro series iPhones outside of China. Foxconn India will handle the production at its facilities, commencing shortly after the global release of the iPhone 16 Pro and iPhone 16 Pro Max. This move underscores Apple’s ongoing efforts to diversify its manufacturing base and reduce reliance on China, aligning with broader industry trends and geopolitical considerations.
India’s role in Apple’s supply chain has been steadily growing, with the country contributing around 14% of Apple’s total iPhone production as of early 2024. This figure is expected to rise to 25% by next year, further emphasizing the increasing importance of the Indian market. The addition of the iPhone 16 Pro series to India’s production portfolio, and the potential for the iPhone 17 to be produced exclusively in the country, highlight Apple’s commitment to expanding its manufacturing presence in India. This expansion is expected to bolster the local economy by creating jobs and attracting technological investments.
Editor’s Note: Apple is set to begin assembling its iPhone 16 Pro models in India for the first time, marking a major shift in its production strategy away from China. Foxconn India will oversee this new production effort, which reflects Apple’s broader goal to diversify its manufacturing base and reduce geopolitical risks. This move not only highlights India’s growing role in Apple’s supply chain but also promises to boost the local economy through job creation and technological investment.
Foxconn Plans to Establish Battery Energy Storage System Unit in India Amid Expansion Efforts
Taiwanese electronics manufacturing giant Foxconn is planning to set up a Battery Energy Storage System (BESS) unit in India, as part of its ongoing global expansion in the energy sector. BESS technology enables the storage of energy generated from renewable sources like solar and wind, playing a crucial role in the transition to sustainable energy solutions. Foxconn’s interest in establishing a BESS facility in India highlights its commitment to expanding its footprint in renewable energy, following the company’s first battery manufacturing plant in Taiwan. According to a report by Indian news agency PTI, Foxconn Chairman Young Liu has been in discussions with Indian officials about potential collaborations, particularly in Tamil Nadu, where the company is looking to establish this new venture.
Foxconn’s broader strategy includes prioritizing electric vehicles, digital health, and robotics, marking a significant shift in its business focus. The company has already made substantial investments in India, totaling USD 10 billion, and plans to increase this amount in the coming year. Foxconn’s expansion into the BESS market in India aligns with its ongoing efforts to diversify its business and support the global push towards green energy. Additionally, Foxconn has also proposed setting up an electric vehicle unit in India, further underscoring its commitment to becoming a key player in the country’s burgeoning clean energy and technology sectors.
Foxconn plans to set up battery energy storage system unit in India (evertiq.com)
Editor’s Note: Foxconn plans to establish a Battery Energy Storage System (BESS) unit in India as part of its broader expansion into renewable energy, following its first battery plant in Taiwan. This move underscores Foxconn’s commitment to supporting sustainable energy solutions and diversifying its business focus, which also includes electric vehicles and robotics. The company’s investment, potentially centered in Tamil Nadu, aligns with its strategy to boost its footprint in India’s clean energy sector and build on its substantial prior investments in the country.
India’s Electronic Manufacturing Services Market to Hit $72.2 Billion by FY27
India’s electronic manufacturing services (EMS) market is set to experience rapid growth, with projections indicating it will reach $72.2 billion by FY27, up from $17.5 billion in FY22. This growth, representing a 32% compound annual growth rate (CAGR) over the five-year period, is being driven by robust government initiatives such as the production-linked incentive (PLI) schemes and the Semicon India programme, aimed at bolstering the country’s electronic manufacturing sector. The government has also reopened the PLI scheme window for white goods to attract additional investments, further boosting the industry’s expansion.
Despite the surge in electronics production, which rose from $48 billion in FY17 to $101 billion in FY23, the report by Motilal Oswal Financial Services highlights that component manufacturing in India has lagged behind. The report notes that component manufacturing faces challenges, including high upfront capital expenditure and longer gestation periods before production begins. To address these issues, Niti Aayog has recommended a series of measures, including fiscal incentives, research and development investments, and the establishment of industrial infrastructure zones. Key players in the EMS market, such as Dixon Technologies and Amber Enterprises, are focusing on expanding their presence and achieving greater backward integration, with the country’s electronic manufacturing capacity expected to reach $500 billion by FY2030.
Editor’s Note: India’s electronic manufacturing services (EMS) market is projected to soar to $72.2 billion by FY27, up from $17.5 billion in FY22, driven by government initiatives like the production-linked incentive (PLI) schemes and the Semicon India programme. Despite this growth, component manufacturing in India faces challenges such as high initial costs and lengthy production timelines. To address these issues, Niti Aayog is advocating for increased fiscal incentives and industrial infrastructure development, with major players like Dixon Technologies and Amber Enterprises focusing on expanding their operations and backward integration.
Ather Energy Becomes Unicorn with $71 Million Investment from NIIF
Ather Energy, the electric scooter manufacturer, has officially entered the unicorn club after securing Rs 600 crore ($71 million) in funding from the National Investment and Infrastructure Fund (NIIF), pushing its valuation to $1.3 billion (approximately Rs 10,900 crore). This makes Ather the fourth Indian unicorn of the year and the second in the mobility sector, following Rapido’s $120 million funding round in July. NIIF, the Indian sovereign wealth fund, had initially invested in Ather in May 2022 and has now significantly bolstered its stake, marking a milestone in Ather’s growth trajectory.
Ather’s valuation has surged from around $740-750 million in 2022, with the latest investment reflecting growing confidence in the company’s future prospects. The funding round was finalized after previous reports indicated Ather was in the process of securing $70-90 million from existing investors, following Flipkart founder Sachin Bansal’s exit from the firm. This development comes at a time when Ather’s larger competitor, Ola Electric, has seen its stock surge following its recent listing, signaling strong investor interest in India’s burgeoning electric vehicle market. Despite the buzz, both Ather and NIIF have remained tight-lipped about the details of the transaction.
Editor’s Note: Ather Energy has joined the unicorn ranks with a $71 million investment from the National Investment and Infrastructure Fund (NIIF), boosting its valuation to $1.3 billion. This funding marks Ather as the fourth Indian unicorn of the year and the second in the mobility sector, following Rapido’s recent funding. The investment highlights growing confidence in Ather’s future and comes amid rising interest in India’s electric vehicle market, even as details of the transaction remain undisclosed.
IIT Guwahati Partners with Taipei Economic and Cultural Centre to Establish Taiwan Education Centre
Indian Institute of Technology (IIT) Guwahati has signed a Memorandum of Understanding (MoU) with the Education Division of the Taipei Economic and Cultural Centre (TECC) in India, marking a significant collaboration aimed at enhancing cultural and educational exchange. The partnership, effective from 13th August 2024, will see the establishment of a Taiwan Education Centre on the IIT Guwahati campus. This initiative is designed to expose students to Taiwanese higher education opportunities, particularly in the semiconductor and agritech industries, through Mandarin language instruction and cultural exchange programs. The MoU was signed by Prof. Devendra Jalihal, Director of IIT Guwahati, and Mr. Peters Chen, Director of the Education Division TECC, with senior representatives from both institutions in attendance.
The collaboration will allow IIT Guwahati to integrate Mandarin language courses into its curriculum, with TECC assisting in recruiting expert teachers from Taiwan. This partnership is part of a broader effort to deepen bilateral ties between India and Taiwan, fostering academic exchanges and industry interaction. With 35 Taiwan Education Centres already established across India, this new centre at IIT Guwahati will be the 36th, further solidifying educational and cultural connections between the two regions. The MoU is set to remain in effect for three years, with provisions for extension and amendment, offering students valuable opportunities for linguistic and cultural development in today’s globalized world.
Editor’s Note: IIT Guwahati has partnered with the Taipei Economic and Cultural Centre to establish a Taiwan Education Centre on its campus, enhancing cultural and educational exchange between India and Taiwan. This initiative will integrate Mandarin language courses and cultural programs into IIT Guwahati’s curriculum, further strengthening bilateral ties and providing students with new opportunities in fields like semiconductor and agritech.
Andhra Pradesh Courts Foxconn with Proposal for ‘Manufacturing City’ and Incentives
Andhra Pradesh’s Education and IT Minister, Nara Lokesh, has extended a high-profile invitation to electronics manufacturing giant Foxconn, proposing the establishment of a “manufacturing city” in the state. During a recent meeting with Foxconn representatives, Lokesh emphasized the state government’s commitment to supporting the company’s expansion plans in India, offering comprehensive subsidies and a dedicated policy framework to facilitate their investment. He highlighted the state’s ambitious goal of creating 20 lakh jobs and expressed confidence that Foxconn could play a pivotal role in achieving this target.
Foxconn’s Indian representative, Vi Li, responded positively, acknowledging the previous efforts of former Chief Minister Chandrababu Naidu in attracting investments to the state and expressing interest in rekindling that relationship. Li confirmed Foxconn’s intent to explore opportunities in Andhra Pradesh, particularly in sectors like electric vehicle manufacturing, semiconductors, and digital health. The meeting concluded with a tentative agreement for significant investment in the state, with Lokesh urging Foxconn to begin the planning process for the proposed manufacturing city.
Editor’s Note: Andhra Pradesh’s Education and IT Minister, Nara Lokesh, has invited Foxconn to establish a “manufacturing city” in the state, offering substantial subsidies and a dedicated policy framework to support the investment. Foxconn’s representative, Vi Li, expressed interest in exploring opportunities in sectors like electric vehicles, semiconductors, and digital health, noting the positive impact of former Chief Minister Chandrababu Naidu’s efforts to attract investment. The meeting ended with a tentative agreement for significant investment, with Lokesh encouraging Foxconn to start planning the proposed manufacturing city.