[ad_1]
Apple is reportedly in advanced discussions with Murugappa Group and Tata group’s Titan Company to assemble — and, possibly, manufacture — sub-components for iPhone camera modules, people aware of the matter told ET.
This move signifies Apple’s intent to deepen its supplier base in India as it gradually shifts operations away from China. Currently, the critical camera module in iPhones lacks Indian suppliers, despite several models being assembled in the country. An ET source revealed that partnering with either Titan or Murugappa could address this gap.
Presently, Apple does not have Indian suppliers for the camera module embedded in iPhones, several models of which are now assembled in India. “Partnering either with Titan or Murugappa Group could address this issue,” told a source to ET.
“In a timeframe of five to six months, they (Apple) will have finalised which is the (partner) to bet on,” said a person in the know. This initial step would serve as a foundation to attract further sub-assembly manufacturers and eventually establish a complete local value chain encompassing image sensors, lenses, and the entire camera module.
What makes Titan and Murugappa strong contenders
Both Titan and Murugappa possess extensive experience in high-precision manufacturing, making them strong contenders for Apple’s partnership. Murugappa Group’s 2022 acquisition of Noida-based camera module maker Moshine Electronics positions them well, potentially enabling them to become an “end-to-end player” in Apple’s India supply chain. Titan, on the other hand, boasts Titan Engineering and Automation, a subsidiary with a proven track record in high-precision component manufacturing across various industries.
The report highlights the possibility of future local manufacturing for camera module components. Murugappa’s existing qualification for government incentives to set up a semiconductor chip assembly unit, coupled with Tata Group’s ongoing construction of a $11-billion chip fab in Gujarat, suggests potential for advancements beyond assembly.
Diversifying the supply chain and cost benefits
Local sourcing presents significant cost advantages for Apple while mitigating dependence on Chinese suppliers. Image sensor chips, typically the most expensive component within a camera module, are a key area where Apple might explore either imports or local manufacturing.
Driven by India’s production-linked incentive (PLI) scheme, Apple has ramped up its manufacturing efforts in the country. Partnering with established players like Foxconn, Pegatron, and Wistron (now under Tata Electronics) further strengthens their Indian presence.
The ET report also mentions Apple’s previous discussions with Indian component makers like Aequs Group and preliminary talks with contract manufacturer Dixon Technologies.
With its sights set on producing iPhones worth nearly ₹1 lakh crore in India by March 2025, Apple’s commitment to the Indian market seems to be solidifying.
This move signifies Apple’s intent to deepen its supplier base in India as it gradually shifts operations away from China. Currently, the critical camera module in iPhones lacks Indian suppliers, despite several models being assembled in the country. An ET source revealed that partnering with either Titan or Murugappa could address this gap.
Presently, Apple does not have Indian suppliers for the camera module embedded in iPhones, several models of which are now assembled in India. “Partnering either with Titan or Murugappa Group could address this issue,” told a source to ET.
“In a timeframe of five to six months, they (Apple) will have finalised which is the (partner) to bet on,” said a person in the know. This initial step would serve as a foundation to attract further sub-assembly manufacturers and eventually establish a complete local value chain encompassing image sensors, lenses, and the entire camera module.
What makes Titan and Murugappa strong contenders
Both Titan and Murugappa possess extensive experience in high-precision manufacturing, making them strong contenders for Apple’s partnership. Murugappa Group’s 2022 acquisition of Noida-based camera module maker Moshine Electronics positions them well, potentially enabling them to become an “end-to-end player” in Apple’s India supply chain. Titan, on the other hand, boasts Titan Engineering and Automation, a subsidiary with a proven track record in high-precision component manufacturing across various industries.
The report highlights the possibility of future local manufacturing for camera module components. Murugappa’s existing qualification for government incentives to set up a semiconductor chip assembly unit, coupled with Tata Group’s ongoing construction of a $11-billion chip fab in Gujarat, suggests potential for advancements beyond assembly.
Diversifying the supply chain and cost benefits
Expand
Driven by India’s production-linked incentive (PLI) scheme, Apple has ramped up its manufacturing efforts in the country. Partnering with established players like Foxconn, Pegatron, and Wistron (now under Tata Electronics) further strengthens their Indian presence.
The ET report also mentions Apple’s previous discussions with Indian component makers like Aequs Group and preliminary talks with contract manufacturer Dixon Technologies.
With its sights set on producing iPhones worth nearly ₹1 lakh crore in India by March 2025, Apple’s commitment to the Indian market seems to be solidifying.