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<ul class="summary-list"><li>Things are getting complicated for Apple when it comes to the chip sector. </li><li>Apple has long depended on China for manufacturing, but the relationship is getting complex. </li></ul>There's a bit of a storm whipping around the chip sector in Asia right now. That makes things complicated for <a href="https://www.businessinsider.com/apple-china-vision-pro-mixed-reality-headset-supplier-supply-chain-2023-6">Apple</a>.Apple has been banking on India to emerge as a new global chip hub to help it <a href="https://www.businessinsider.com/apple-halts-made-in-taiwan-label-anger-china-pelosi-visit-2022-8">reduce dependency on China, </a>which Foxconn — a Taiwanese electronics giant and assembler of iPhones — helped turn into one of the world's most important manufacturing hubs for Apple.Supply chain woes triggered during the pandemic by Beijing's persistent lockdowns, as well as <a href="https://www.businessinsider.com/us-china-tech-war-computer-chips-semiconductor-plants-costing-americans-2023-1">rising geopolitical tensions</a> thanks to China's hawkishness on Taiwan, have made the country an increasingly difficult one for Apple to tie its fortunes to, albeit one it is stuck with for some time.<a href="https://affiliate.insider.com?h=ed703b8c9b3a65c8bf15b51c0131e4ee145856d041dc19185c78403ec6d246c3&amp;postID=64ad36a5b854d531a11bc325&amp;site=bi&amp;u=https%3A%2F%2Fwww.apple.com%2Fsupplier-responsibility%2Fpdf%2FApple-Supplier-List.pdf" target="_blank" rel="noopener">Apple's most recent supplier list</a> showed that around 150 of its suppliers, the vast majority, were located in China mainland during its 2022 fiscal year, while Chinese contract manufacturer Luxshare has been tasked with supporting the manufacturing of <a href="https://www.businessinsider.com/how-apple-described-vision-pro-mixed-reality-headset-2023-6">Apple's new Vision Pro headset. </a>But that isn't stopping Apple from thinking about production beyond China. Its <a href="https://affiliate.insider.com?h=ed703b8c9b3a65c8bf15b51c0131e4ee145856d041dc19185c78403ec6d246c3&amp;postID=64ad36a5b854d531a11bc325&amp;site=bi&amp;u=https%3A%2F%2Fwww.apple.com%2Fsupplier-responsibility%2Fpdf%2FApple-Supplier-List.pdf" target="_blank" rel="noopener">supplier list in India and Vietnam</a> collectively has slowly crept up in recent years — 39 in 2022 versus 18 in 2017 — while its list in China has seen a very gradual decline. JP Morgan has previously estimated that as much as 25% of Apple's products could be made outside of China by 2025, up massively from the roughly 5% level it has hovered at since last year. But unlike Vietnam, India has the economic might to pitch itself as a tech-manufacturing powerhouse with the heft to rival China – a role it no doubt relishes given its geopolitical battle with Beijing. It's why <a href="https://www.businessinsider.com/apple-ceo-tim-cook-ai-needs-to-be-carefully-deployed-2023-5">Apple CEO Tim Cook</a> spent some time in India in April, meeting Modi and building bridges with others such as Bollywood star Madhuri Dixit and billionaire tycoon Mukesh Ambani, who he was reported to have met in Mumbai. Two recent developments suggest India's push to become a viable alternative to China — and benefit Apple — are mixed.In a win for Indian prime minister Narendra Modi, the conglomerate <a href="https://www.bloomberg.com/news/articles/2023-07-11/tata-group-closes-in-on-deal-to-become-first-indian-iphone-maker" target="_blank" rel="noopener">Tata Group is reportedly in the final stages of talks to purchase an Apple supplier factory for around $600 million. </a>If the deal goes ahead it would make it the first Indian company to move into local assembly of iPhones, Bloomberg reported. The facility, which is in the southern Indian state of Karnataka and assembled the <a href="https://www.businessinsider.com/guides/tech/iphone-14-review">iPhone 14</a>, is run by Taiwanese manufacturer Wistron. But elsewhere, Taiwanese iPhone manufacturer Foxconn <a href="https://www.reuters.com/technology/foxconn-pulls-out-india-chip-jv-with-vedanta-2023-07-10/" target="_blank" rel="noopener">pulled the plug on its $19.5 billion-dollar joint venture with Indian conglomerate Vedanta</a> on Monday, per Reuters, giving no reason for its decision to axe the project one year after its signing."Foxconn has determined it will not move forward on the joint venture with Vedanta," Foxconn said in a statement to Reuters. That's a critical blow to Modi, who set out chip manufacturing as a strategic part of his ambitions to level up India.The joint venture was meant to take up residence in Modi's home state of Gujarat, while enticing the likes of Europe's STMicroelectronics, a semiconductor manufacturer, to play partner in the development of <a href="https://www.businessinsider.com/chip-making-semiconductors-india-powerhouse-foxconn-vedanta-jv-setback-2023-7">a facility that could feasibly have put chips in everything from phones to cars.</a>Vedanta chairman Anil Agarwal <a href="https://twitter.com/AnilAgarwal_Ved/status/1569574006302584837?s=20" target="_blank" rel="noopener">tweeted</a> that the joint venture meant "India's own Silicon Valley is a step closer now." That's a bit of a blowout now, and not just for Modi and Agarwal.As much as <a href="https://www.businessinsider.com/apple-iphone-needs-chinese-consumer-china-government-2022-12">Apple is tied to China</a> for now, it will desperately want India to prove itself capable of building a manufacturing capacity that makes it a dependable, long-term partner in due course.Sure, the joint venture wasn't directly connected to Apple, but it's something that will likely be watched very closely in Cupertino as a litmus test of India's ability to take its technological ambitions to new heights.

India's slow progress in becoming a chipmaking powerhouse to rival China is bad news for Apple

<ul class="summary-list"><li><keyword id="11932995" type="UNKNOWN" weightage="60" keywordseo="pollution" source="Orion">Pollution</keyword> levels in New Delhi, <keyword id="11892747" type="UNKNOWN" weightage="60" keywordseo="india" source="Orion">India</keyword>, have been dangerously high these past two weeks.</li><li>Schools were told to shut for a week from Monday and construction work was banned for three days.</li></ul>Authorities in India plan to enforce a new lockdown to combat <a href="https://www.businessinsider.com/new-delhi-toxic-air-worse-people-ignore-ban-diwali-fireworks-2021-11">air pollution in New Delhi</a>, the world's most polluted capital city.Pollution levels in some parts of city have registered off the charts several times over the past fortnight. On Tuesday, the air quality index <a href="https://app.cpcbccr.com/AQI_India/">scored 437 out of a maximum 500 points.</a>Indian cities have long struggled with pollution, but levels spike each winter as fumes from farmers burning their crops mix with pollution from cars and industrial plants, <a href="https://apnews.com/article/climate-business-india-air-pollution-smog-942e06b34db27af794a269d5fa95c7cd">the Associated Press reported.</a>At an emergency meeting Tuesday, New Delhi officials said they were planning a weekend lockdown and work-from-home order to counter the issue. "We have proposed a weekend lockdown, we are ready for it. Our strategy will depend on the court's directions now," Gopal Rai, the Delhi minister for environment, forest, and wildlife, <a href="https://www.ndtv.com/india-news/delhi-air-pollution-wfh-among-delhis-proposals-to-fight-pollution-day-after-supreme-court-rap-2612701">told NDTV.</a> The declaration follows that taken by the New Delhi government on Saturday, which said schools would shut for a week from Monday and that construction workers must stay at home for three days from Sunday, <a href="https://timesofindia.indiatimes.com/home/education/news/delhi-schools-shut-for-a-week-construction-ban-for-3-days/articleshow/87693564.cms">the Times of India reported.</a>On Monday, India's Supreme Court said it advised authorities to outlaw all nonessential road travel and make people work from home, <a href="https://www.reuters.com/world/india/indias-top-court-orders-work-home-over-pollution-capital-2021-11-15/">Reuters reported.</a>The Supreme Court is set to vote on which measures to impose, NDTV said.A fresh lockdown in New Delhi would come hot on the heels of the region's COVID-19 lockdown that only <a href="https://www.businessinsider.com/fauci-urged-india-to-impose-covid-lockdown-modi-refused-2021-5">ended in May</a>.At the COP26 climate summit in the UK last week, Indian Prime Minister Narendra Modi was initially praised after pledging that India would cut emissions to net zero by 2070.However, <a href="https://www.bbc.co.uk/news/world-asia-india-59286790">the country changed its plan</a> at the last minute to "phase out" coal use to "phase down" coal use, <a href="https://www.bbc.com/news/uk-59280241">angering climate activists and multiple politicians.</a>

Authorities in India are planning a new lockdown not to combat COVID-19, but air pollution

<ul class="summary-list"><li><keyword id="11939868" type="UNKNOWN" weightage="60" keywordseo="ipad" source="Orion">iPad</keyword> assembler BYD is helping <keyword id="11894021" type="UNKNOWN" weightage="60" keywordseo="apple" source="Orion">Apple</keyword> to move some production to <keyword id="11906679" type="UNKNOWN" weightage="60" keywordseo="vietnam" source="Orion">Vietnam</keyword>, Nikkei Asia reported.</li><li>It's the first time that iPads will be manufactured outside <keyword id="11892748" type="UNKNOWN" weightage="60" keywordseo="china" source="Orion">China</keyword>.</li></ul>Apple is moving some iPad production out of China for the first time amid ongoing disruption caused by lockdowns in cities such as Shanghai, <a href="https://asia.nikkei.com/Spotlight/Supply-Chain/Apple-to-shift-iPad-capacity-to-Vietnam-amid-China-supply-chain-woes">Nikkei Asia reported</a>. BYD, a Chinese manufacturer and major supplier of iPads, will soon start producing a small number of the tablets in Vietnam, according to the report.The iPad would be the second major Apple product series to be manufactured in Vietnam after AirPods Pro 2. Apple also asked several China-based manufacturers to stockpile components parts such as circuit boards and chips to safeguard against future supply disruptions and ease disruptions caused by ongoing COVID-19 lockdowns, Nikkei reported.A months-long <keyword id="91743" type="UNKNOWN" weightage="60" keywordseo="lockdown" source="Orion">lockdown</keyword> in Shanghai was <a href="https://www.bbc.co.uk/news/world-asia-china-61655297">partially eased on Wednesday</a> but has caused severe disruption to the tech sector already hampered by the ongoing semiconductor shortage.Apple CEO Tim Cook <a href="https://seekingalpha.com/article/4504834-apple-inc-aapl-ceo-tim-cook-on-q2-2022-results-earnings-call-transcript">estimated in April</a> that these supply constraints would cost the company between $4 billion and $8 billion. Quanta Computer, another supplier to Apple, has come under scrutiny for its "closed loop" COVID-19 system that has forced workers to stay in on-site dorms and sparked <a href="https://www.businessinsider.com/apple-workers-shanghai-factory-storm-dormitory-revolt-captivity-clash-guards-2022-5">sparked protests</a>. Apple had been planning to move some production out of China to reduce its reliance on decision-making in Beijing and its trade relationships with the US, but that was put on hold when the pandemic began, according to <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.wsj.com%2Farticles%2Ftim-cook-and-apple-bet-everything-on-china-then-coronavirus-hit-11583172087%3Fmod%3Darticle_inline">The Wall Street Journal</a>. Some iPhone production was moved to a Foxconn plant in 2017 near Chennai, India, but about 90% of its products are still being manufactured in China, <a href="https://www.businessinsider.com/reviews/out?u=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fapple-looks-to-boost-production-outside-china-11653142077">analysts told The Journal</a>. About 58 million iPads were shipped last year, compared with 233 million iPhones.Apple and BYD did not immediately respond to Insider's request for comment.

Apple is moving some iPad production outside China for the first time, report says

The unprecedented nationwide <keyword id="91743" type="PERSON" weightage="20" keywordseo="lockdown">lockdown</keyword> that shut businesses, suspended flights and stopped all modes of transport will cost the Indian economy almost USD 4.64 billion every day and the entire 21-day lockdown will result in a GDP loss of almost USD 98 billion, Acuite Ratings &amp; Research Ltd said on Thursday. The rapid spread of Covid-19 has not only disrupted the global economy but also triggered a partial shutdown in many parts of India from early March and an almost complete shutdown from March 25. "While the countrywide shutdown is scheduled to be lifted from April 15, 2020, the risks of prolonged disruption in economic activities exist depending on the intensity of the outbreak," the credit rating agency said in a statement. The ongoing disruption, it said, will have a significant economic consequence across the world and also in India. IMF has already forecast a recession for the global economy in 2020. Acuite Ratings believes there is a risk of a contraction of April-June (2020-21 fiscal) GDP to the extent of 5-6 per cent, with Q2 (July-September) also likely to post modest growth in a best-case scenario. It expects the overall GDP growth for FY21 (April 2020 to March 2021) to be in the band of 2-3 per cent which takes into account a significant economic revival in the second half of the financial year. Sankar Chakraborti, CEO, Acuite Ratings &amp; Research, said: "Acuite Ratings estimates that every single day of the nation-wide lockdown will cost the Indian economy almost USD 4.64 billion. Consequently, the 21-day lockdown will result in a loss of GDP of almost USD 98 billion." Stating that the ratings agency employed multiple methods to assess real GDP estimates for Q1 FY21, he said there is a significant risk that it may contract up to an extent of 5-6 per cent as compared to a pre-Covid growth estimate of 5 per cent. In such a lockdown scenario, the sectors that are most severely impacted are transport, hotel, restaurant, and real estate activities. "In our opinion, there would be at around 50 per cent GVA (gross value added) loss in these sectors, which account for around 22 per cent in overall GVA, in Q1 of FY21," it said. On the other hand, the services that are expected to see enhanced activities during this crisis are communication, broadcasting, and healthcare. But with a 3.5 per cent share, their contribution to the overall GVA is small. The impact of the lockdown is also fairly severe on industrial activities which is set to witness significant contraction in Q1 except in the pharmaceutical, gas and electricity and medical devices which account for around 5 per cent of GVA, it added. Unlike the services sector, the industry, however, can manage demand to some extent with inventory drawdowns until the resumption of production. Karan Mehrishi, Lead Economist, Acuite Ratings &amp; Research said: "The agricultural sector which accounts for 15 per cent of GVA, is nonetheless, expected to see continuing activity even in the lockdown period; however, the allied activities are partly impacted as livestock and fisheries are experiencing mute demand due to the Covid-19 concerns." The credit rating agency said it would take at least 2-3 months to restore the industry supply chain even if the lockdown is limited to 21 days. "There are also further risks of local lockdown in various regions of the country depending on the extent of the outbreak and partial disruption in economic activities till H1FY19 is a realistic scenario." Acuite estimated that the second quarter may show moderately positive growth of just under 3 per cent on the back of the expected normalisation process and some pent up demand although it is also linked to the intensity of the pandemic. On the positive side, quick recovery in domestic economic activities is likely in H2, which may, in turn, benefit from the increased fiscal and monetary measures along with lower global oil prices. "We, therefore, believe that the average H2 GDP expansion may be in the vicinity of 6.5 per cent. Overall, a likely contraction in Q1 followed by modest growth in Q2 will clearly have a severe impact on India's economic trajectory that has already been under the effect of a prolonged slowdown," it added. SEE ALSO:<a href="https://www.businessinsider.in/india/news/india-has-20-covid-19-hotspots-and-20-more-potential-ones/articleshow/74948300.cms" data-type="tilCustomLink"> India has 20 Covid-19 hotspots and 20 more potential ones</a>

Lockdown is costing India $4.6 billion every day says Acuite Ratings

While the new government guidelines have allowed IT manufacturing units including mobile phones to resume operations from May 4, there has been no official confirmation yet and Realme India is awaiting the nod to open its factory at Greater Noida and begin streamlining overall processes, its CEO Madhav Sheth said on Sunday. Due to the extended lockdown, there are many challenges faced by businesses with huge impact from sales, manufacturing and cost. "With the recent extension of the lockdown period for two more weeks, we haven't received any official confirmation on when can the production will resume," Madhav Sheth, Vice President, Realme and CEO, Realme India, told IANS. <div type="Article" hostid="261" msid="75515809" title="Tech Mahindra shares are cheap despite the earnings disappointment, says a research report" mstype="2" mssubtype="0"></div> "We have reached out to the government for approval on opening of factory and now await their decision. We will abide by the government's order strictly, while prioritising people's health," he added. The India Cellular And Electronics Association (ICEA) on Friday welcomed the decision to let the IT manufacturing units including mobile phones resume operations, saying it thanks the MHA for accepting the industry's recommendations to restart manufacturing of IT Hardware products which include mobile phones and mobile devices. The extended lockdown in India has resulted in zero shipments for the smartphone players in India in the month of April as factories are shut. According to Sheth, from manufacturing point of view, even if the government allows factories to reopen, it will take at least two-four weeks for the factory to resume its normal capacity. "We don't want to rush and open our factory as the situation is still not normal and we value our employees and their safety. We would wait for the government's further notice to understand that till what extent the factories can start working and would decide further on that,' he elaborated. The month of March saw a steep annual decline in smartphone shipments, at -19 per cent, due to COVID-19 nationwide lockdown that settled in from March 24. On cost factors, the outbreak of COVID-19 has also influenced countries like China, Korea, the US and Japan, where most of the upstream component suppliers of smartphones are located. "However, the demand on the sales side also got reduced due to the lock-down as most brands couldn't operate their business and had to delay product plans," said Sheth. In the future, he added, the disturbance of manufacturing along with the new surge of demand post lock-down might have further impacts on the price of components, which eventually influences smartphone selling price. "The GST hike and fluctuating rupee exchange rates are other two cost factors," he said. Other problem smartphone manufacturers are facing is lack of manpower. "The migrant workers, truckers and helpers have gone back to their hometown. It will take more time to revamp the entire production cycle even after the lock-down period is over," Sheth told IANS. The bigger uncertainty comes on the demand side. "If the nation's economy and people's income got hampered, then the smartphone demand in 2020 may not be optimistic. We will need to evaluate further how the economy recovers post the market reopen," he emphasized. "Bringing the factory back to work can help us sustain our business and employee welfare. Even during lock-down, we have been paying the same amount of salaries to workers on a monthly basis instead of daily wage," informed Realme CEO, adding that while sustaining business and considering employees welfare are top priorities, "we would hope to revamp the production to normal as fast as possible". SEE ALSO: <div type="Article" hostid="261" msid="75447090" title="How to pre-book OnePlus 8, OnePlus 8 Pro and save ₹1,000" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="75444717" title="Smartphone sales in China decrease by 24% due to Coronavirus" mstype="2" mssubtype="0"></div> <div type="Article" hostid="261" msid="75288731" title="Paytm is doubling down on e-sports as it launches another online tournament — this time with Garena’s Free Fire" mstype="2" mssubtype="0"></div>

You Searched For "India Lockdown News" and got 5 results

India's slow progress in becoming a chipmaking powerhouse to rival China is bad news for Apple

Hasan Chowdhury

Authorities in India are planning a new lockdown not to combat COVID-19, but air pollution

Bill Bostock

Apple is moving some iPad production outside China for the first time, report says

Rosie Bradbury

Lockdown is costing India $4.6 billion every day says Acuite Ratings

PTI

Realme's India CEO says the Greater Noida smartphone factory can restart after 'official confirmation'

IANS

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