Salcomp, a Finnish supplier to Apple, aims to increase its Indian workforce to 25,000 within three years and generate revenue between $2 billion to $3 billion by 2025, according to a company executive, as reported by Reuters.
These plans are a result of Apple’s decision to move production from China due to COVID-related lockdowns and tensions between Beijing and Washington. Since 2017, Apple has been increasing its presence in India through assembly by Wistron and Foxconn, as part of the Indian government’s push for local manufacturing.
The executive stated that Salcomp will play a crucial role in Apple’s supply chain. Recently, Apple reported all-time iPhone revenue, quarterly revenue records in India.
Salcomp targets revenue of $2-$3 billion in India by 2025
Salcomp currently employs 12,000 people at its Chennai plant, which produces mostly chargers and other smartphone components. The plant started operations in 2020 after Salcomp acquired the facility from Finnish telecom equipment maker Nokia.
The executive predicts the Indian business will reach revenue between $2 billion to $3 billion by 2025, compared to less than 40 billion rupees ($484 million) currently. Last year, Reuters reported that Foxconn is also aiming to increase its workforce at its iPhone factory in India by four times over the next two years.
J.P. Morgan analysts estimated in the past year that 25% of Apple products would be manufactured outside of China by 2025, compared to the current 5%. The Indian trade minister stated in January that Apple is looking to increase its production in India to 25% from the current 5-7%.
During an Industry event, Sasikumar Gendham, Managing director, Salcomp Manufacturing India, said,
The whole supply chain is now kind of looking at an alternative. And India is poised to be one of the best alternatives. Everyone knows that the whole world has been depending on this one nation (China) over the last few decades and it’s time to really diversify and decluster.