How does Apple’s Chinese equipment withdrawal affect India?

Apple’s supply chain strategy is entering a new phase as the company intensifies moves to reduce dependency on China and avoid operational risks. The withdrawal of Chinese equipment and personnel has triggered a search for alternative solutions to keep iPhone production robust and globally competitive.

India has emerged as a vital manufacturing and technology partner for Apple in 2025, responding to the growing complexity of international trade and technology controls. These changes are reshaping how and where Apple builds its most sophisticated products.

Why is Apple shifting away from China?

Recent years have seen Apple’s supply chain increasingly vulnerable to regional tensions and policy changes. China’s imposition of equipment export restrictions and the recall of engineers from Apple supplier facilities in India have raised alarm.

To mitigate these pressures, Apple is diversifying its supplier base, sourcing machinery and know-how from Indian manufacturers, and ensuring smoother production continuity should Chinese inputs become unavailable.

This shift reflects Apple’s strategic effort to secure critical manufacturing expertise in other regions.

By localizing more advanced manufacturing equipment in India, Apple aims to shield itself against future export curbs, tariff threats, or sudden operational disruptions.

Did you know?
India’s iPhone exports topped $7.5 billion between April and July 2025, marking an all-time record for the country’s electronics sector.

Who are Apple’s new partners in India?

Apple has turned to approximately 17 Indian firms to fill the gap left by China’s shifting posture. Major companies include Titan Engineering and Automation Ltd (TEAL), Jyoti CNC Automation, Bharat Forge, and Wipro, all of which now supply advanced production machinery to Apple’s Indian-based assembly giants, Foxconn and Tata Electronics.

The selection reflects both the rising maturity of India’s industrial sector and Apple’s confidence in ramping up local capacity.

Nearly half of India’s 35 capital equipment firms have formed relationships with Apple, with more expected to join in the coming years.

What machinery is being localized for iPhone production?

Apple’s partners are tasked with manufacturing high-precision machinery essential for critical iPhone assembly stages that follow the surface mount technology (SMT) line.

This includes equipment that automates micrometer-level mounting of electronic components, QC systems, and packaging automation. The IP for much of this machinery remains with Apple, but Indian partners handle fabrication and support.

By collaborating closely, Apple’s suppliers are building machines that match the sophistication historically achieved only in China’s top facilities.

This strategic transfer not only builds supply chain independence but also signals confidence in India’s engineering capabilities.

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How do export curbs and engineer withdrawals impact operations?

China’s tightening of export rules has led to the withdrawal of hundreds of engineers from Indian factories tied to Apple suppliers. For example, Foxconn’s India unit saw about 300 Chinese engineers recalled in August, the second such event in as many months.

These moves create immediate training and knowledge transfer challenges, as specialized machinery often requires real-time support from experienced staff.

In response, Apple has accelerated the transfer of intellectual property and technical know-how to India, aiming to make local teams self-sufficient.

Despite the steep learning curve, the swift onboarding of Indian engineers mitigates the impact of Chinese talent departures and aligns with wider de-risking objectives.

What comes next for Apple and India’s supply chain?

India’s role in Apple’s global plans is poised to grow further. The country is set to produce all iPhone 17 models for the first time, and Apple’s supplier base is likely to expand well beyond the current 17 equipment partners.

With $7.5 billion in iPhone exports from April to July 2025 and government targets to raise domestic value addition to 30-40 percent, India’s position continues strengthening.

Despite ongoing threats of US tariffs under President Trump, smartphones retain exemptions that let Apple deepen its India commitment.

The next phase will likely feature increased focus on more complex components and software localized for Indian production, a template that could inspire similar diversification moves industry-wide.

Apple’s capacity to adapt quickly to geopolitical changes will be closely watched. Its investments in localized machinery and engineering talent showcase a blueprint for balancing global reach with supply chain resilience.