Apple Strengthens EMS Supply Chain for Upcoming Device Launches
- By Lipika Agarwal
- 27 May 2025
- Business
Apple is increasing efforts to diversify its manufacturing operations as it prepares to launch next-generation devices like the iPhone SE4. Due to geopolitical tensions and supply chain disruptions, the company is increasingly turning towards India and Vietnam for Electronic Manufacturing Services (EMS) capabilities.
Strategic Expansion in India
India has emerged as an integral component of Apple's efforts to reduce their dependence on Chinese manufacturing. They have partnered with over 40 Indian firms such as Dixon Technologies, HCLTech, Wipro and Tata Electronics – supporting local production of components for iPhones, MacBooks, iPads, and AirPods. Their initiative has been supported by India's Production-Linked Incentive (PLI) scheme, which has resulted in major investments being made into electronics production facilities and services.
Foxconn recently made headlines when they pledged a $1.5 billion investment into an LCD module assembly facility near Chennai, Tamil Nadu, that will generate 14,000 jobs and provide components for future iPhone models. Furthermore, Tata Electronics acquired 60% ownership in Pegatron's iPhone manufacturing plant in Tamil Nadu, further expanding Apple's manufacturing footprint in this region.
Vietnam's Role in Component Production
Vietnam has emerged as an essential centre for component production. Apple is taking advantage of Vietnam's capabilities to produce camera modules, AirPods and other components, which are then exported back to India and China for final assembly, creating a more resilient supply chain overall.
Projected Growth and Market Impact Analysis
Apple's increased investment in India is projected to significantly expand production capacity. By fiscal year 2025, India is projected to account for 17-18% of Apple's global iPhone production volume, with production value reaching $18 billion. This expansion not only mitigates supply chain risks but also aligns with India's “Make in India” initiative, which contributes to local economic growth and job creation.
Conclusion
Apple is taking proactive steps to strengthen its EMS supply chains in India and Vietnam in preparation for future device releases, with initiatives designed to bolster operational resilience and market adaptability while maintaining Apple's global position and contributing to economic development in their host nations.
