As part of a larger effort to move away from a supply chain largely based in China, Finnish Apple supplier Salcomp wants to increase its staff in India to 25,000 in three years.
India increasingly becoming an important region for Apple suppliers
Salcomp, a supplier of smartphone components and a producer of chargers, currently employs 12,000 people in its Chennai facility. One company executive said that number might more than double by 2025. Within the same three-year period, the company expects its sales to increase to at least $2 billion and maybe $3 billion.
According to Sasikumar Gendham, managing director of Salcomp Manufacturing India, the move is based on problems with current production that is being done in China. A fresh approach needs to be taken into account because COVID lockdowns in the region are still having an impact on output. The geopolitical tensions between China and the United States are also a major factor.
“The whole supply chain is now kind of looking at an alternative. And India is poised to be one of the best alternatives,” said Gendham in a report from Reuters. “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,” he added.
According to Gendham, the company plays a “significant role” in Apple’s supply chain, which may be part of the rationale for the ambitious ambition. The company’s income will rise from its present level of 40 billion rupees ($484 million) to a billion-dollar level within a few years as a result.
As per Salcomp’s plans, the company will build a housing complex with amenities for the workers’ amusement and education that will house about 15,000 people. Salcomp’s remarks come following the Indian commerce minister’s assertion that Apple plans to increase local production by 25%. By 2025, it is expected that the region will produce one out of every four iPhones.