American tech giant Apple has “assured” the Indian government of its continued commitment to using India as a major base to manufacture its products, media reports said.
Apple gave the assurance to the Indian government amid U.S. President Donald Trump‘s recent remarks, where he said he asked the tech major not to manufacture in India despite New Delhi offering a ‘no-tariff deal’ to the USA.
Speaking on Apple’s decision, a source told CNBC-TV18: “There is no change in Apple’s investment plans in India.”
Donald Trump’s Doha Remark
U.S. President Donald Trump, who was visiting Doha recently, was quoted as saying by Mint: “I had a little problem with Tim Cook yesterday.”
“He is building all over India. I don’t want you building in India. India can take care of itself,” the President said.
“We are not interested in you building in India… We want you to build here [in the US],” he said.
Call For Long-Term Vision
Indian electronic industry experts seem largely unshaken by Trump’s recent remark.
Rajoo Goel, Secretary General of the Electronic Industries Association of India (ELCINA), told CNBC-TV18: “We need to go deeper into the value chain and do more of the components locally.”
He said he feels Trump’s remark will not impact India much.
“It may slow things down a bit, but I really don’t think it is going to impact India that much. We are still doing a very small share of the global market for Apple,” he said.
He said he is hopeful that Trump will change his stance.
India is now becoming a major hub for Apple’s global supply chain. The American tech giant’s contract manufacturing firms, like Foxconn and Pegatron, are expanding operations in India under the production-linked incentive (PLI) scheme.
India Approves Semiconductor Plant
The Indian Cabinet on Wednesday approved the setting up of a Rs.3,700 crore semiconductor manufacturing facility close to Uttar Pradesh’s Jewar town.
The facility is a joint venture between tech majors HCL and Foxconn.
This is the sixth semiconductor unit that will be set up in India.
In a statement, the Union Cabinet said: “HCL has a long history of developing and manufacturing hardware. Foxconn is a global major in electronics manufacturing. Together they will set up a plant near Jewar airport in Yamuna Expressway Industrial Development Authority or YEIDA.”
This plant will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and a myriad of other devices that have a display.
(With inputs from IBNS)
