Apple's Struggle to Exit China... Battery Also 'Made in India'

"New iPhone 16 Battery Production Also Planned in India"

Apple has launched a plan to move the main production base of iPhone batteries to India. Analysts say this move accelerates the de-China strategy to mitigate the risks of the US-China conflict.

On the 6th (local time), major foreign media outlets reported, citing multiple sources, that Apple is pushing to manufacture lithium-ion batteries for the upcoming iPhone 16 at factories in India. According to sources, Apple recently informed its battery partners that it intends to procure batteries for the iPhone 16 from production facilities within India.

[Image source=AFP Yonhap News]

The iPhone battery supplier The Sai of China received a specific proposal to build a new factory in India, and another supplier, Taiwan's Simplo, was requested to expand its production facilities in India. An Apple representative stated, "If the supply of batteries for the iPhone 16 proceeds smoothly, we plan to gradually increase the volume of iPhone battery production within India."

Recently, the Indian government announced that Japanese electronic component maker TDK, which supplies batteries to Apple, will build a production facility for iPhone batteries locally. TDK's factory in India will be established in Manesar, southern Haryana state, covering 180 acres (220,000 pyeong) starting in 2025. Rajeev Chandrasekhar, India's Minister of Electronics and Information Technology, welcomed the move, saying, "Apple and TDK will help achieve the goal of nurturing India's electronics industry ecosystem."

Amid rising labor costs in China, pressure from the Chinese government for technology transfer, and various management environment risks due to US-China strategic competition, Apple is reducing its dependence on China. Notably, during the US-China trade dispute under the Donald Trump administration, Apple insisted on production in China, but with tariff risks becoming apparent under the Biden administration, the company is accelerating its de-China efforts.

The supply chain disruption caused by China's lockdown policies during the COVID-19 pandemic is also cited as a reason for de-China. When lockdown policies and protests over working conditions erupted simultaneously at Foxconn's factory in Zhengzhou, Henan Province, China's largest iPhone production base, severe disruptions to iPhone production occurred for several months starting late last year. Since then, Apple has diversified its production bases to Southeast Asia, including India, Vietnam, and Malaysia. Starting with the iPhone 14 model last year, some production lines for the iPhone 15 are also operating in India this year.

However, foreign media pointed out that Apple's de-China production base strategy may face difficulties because India is restricting cooperation with China. Since the border clash between China and India in June 2020, the Indian government has launched extensive crackdowns and regulations on Chinese companies. Currently, Chinese companies must obtain approval from Indian authorities to establish production plants in India. Previously, Luxshare of China attempted to build a new factory worth $3.3 billion in India in line with Apple's de-China policy, but faced opposition from the Indian government and shifted its focus to Vietnam.