Tag: local suppliers

Highlights Apple aims to increase iPhone production in India to 25% by 2028 Current production share in India is 14% 14 Apple supplier facilities are already operating in India Strategy to reduce reliance on Chinese suppliers and build a local vendor base Apple is reportedly aiming to ramp up iPhone production in India from less than 15% at present to 25% by 2028 This ambitious target reflects the commitment of the company toward the development of a strong local supplier base and reducing dependence on Chinese vendors, while at the same time providing a dose of realism to inflated expectations. The iPhone maker’s India revenue is expected to rise 20% in FY25, after having grown by about 70% in FY24 to reach an estimated $10 billion, and having reported “a record March quarter for iPhones, with a shipment volume growth of nearly 20% year-on-year," as per Navkendar Singh, associate vice-president at market researcher International Data Corp. (IDC) India. Realistic Estimates Apple to Boost iPhone Production in India to 25% by 2028 Earlier estimates had Apple's iPhones from India at 25% by 2025 and 50% by 2027. India's Union Minister of Electronics and IT, Rajeev Chandrasekhar, in a recent update, said that Apple would more likely increase the production share of iPhones in India from the current 14% to 25% by 2028. Key Points to Note Current production share in India is 14% Apple plans to grow India's iPhone production share to 25% by 2028. Previous sources estimated even higher ambitions: 25% by 2025 and 50% by 2027. Currently, there are 14 Apple supplier facilities in India. A local ecosystem is essential to execute the long-term production ambitions of Apple. “Apple makes roughly 200 million iPhones a year. A quarter or 50 million iPhones from India within three to four years seems steep, since the premiumization trend would not stay for long. Even if it is 30 million units, it would be substantial, and it is the most likely candidate to cross Rs 1 trillion revenue from India operations," said Faisal Kawoosa, chief analyst and founder at research firm Techarc. Apple is pushing to build a strong local network of vendors in India to reduce its reliance on Chinese suppliers. 14 Apple supplier facilities are already operating in India As more and more suppliers join the list, notably Flex Ltd, Jabil Inc, and Cheng Uei Precision Industry, India is looking to become a significant node in Apple's global supply chain. The strategy not only helps increase production but also spreads the economic benefit by including more Indian suppliers in Apple's supply chain. With Tata Electronics poised to close the deal for Pegatron's assets and existing facilities expanding, India is fast becoming a critical player in Apple's global manufacturing network. This reality check forms part of the long-term process for Apple to diversify iPhone production outside of China. If nothing else, it does highlight that it is a gradual effort rather than an overnight transition. Samsung Catching up with Apple’s 3nm Design Strategy to reduce reliance on Chinese suppliers and build a local vendor base In more news, Samsung plans to mass-produce its 3nm Exynos application processors in the latter half of 2024, aiming to challenge Apple’s smartphone dominance and put pressure on TSMC and Qualcomm. According to DigiTimes, Samsung will officially unveil its 3nm APs, codenamed “Solomon,” in 2025. The System LSI Division completed the tape-out in early 2024, and the project has now moved to the Semiconductor Foundry Division for prototype manufacturing. The 3nm Exynos APs, using the Gate-All-Around (GAA) process, are expected to outperform the previous Exynos 2400 found in the Galaxy S24 series. Analysts predict that these new APs will be integrated into the Galaxy S25 smartphones starting in late 2024, boosting Samsung’s competitiveness in the semiconductor market. FAQs What is Apple's target for iPhone production in India by 2028? Apple aims to increase the production share of iPhones in India to 25% by 2028. How does the current production share in India compare to Apple's future target? Currently, Apple produces 14% of its iPhones in India, with a goal to reach 25% by 2028. Why is Apple increasing iPhone production in India? Apple is increasing production in India to reduce reliance on Chinese suppliers and build a strong local supplier base. What were the earlier estimates for Apple's iPhone production in India? Earlier estimates suggested that Apple would achieve 25% production in India by 2025 and 50% by 2027. How many Apple supplier facilities are currently operating in India? There are currently 14 Apple supplier facilities operating in India. What is anticipated timeline for Samsung’s shift to 3nm chips ? Mass Production in 2024: Samsung is preparing to start mass-producing the 3nm Exynos processors in the latter half of 2024. Integration into Galaxy S25: Analysts expect these 3nm processors to be integrated into the Galaxy S25 smartphones, which are anticipated to launch in late 2024. Official Unveiling in 2025: The formal unveiling of the 3nm APs, codenamed “Solomon,” might be planned for 2025, potentially aligning with broader announcements or additional products using the new technology. What does DigiTimes report suggest on Samsung Exynos 3nm chip ? That’s according to DigiTimes, which published a report on Samsung’s Exynos 3nm chip this week. Industry sources report that Samsung will officially unveil its 3nm APs, codenamed “Solomon,” in 2025. The System LSI Division completed the tape-out in early 2024, and the project has moved to the Semiconductor Foundry Division for prototype manufacturing. The 3nm Exynos APs, using the Gate-All-Around (GAA) process, are expected to outperform the previous Exynos 2400 found in the Galaxy S24 series. Analysts predict these new APs will be integrated into the Galaxy S25 smartphones starting in late 2024, boosting Samsung’s competitiveness in the semiconductor market. Also Read: Samsung’s Exynos 2500 Could Be a Deca-Core Chipset and 2nd Gem 3nm Fabrication Also Read: Qualcomm Could Partner with Samsung for next year’s 2nm Snapdragon 8 Gen 5 Chipset

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