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China's rare earth export curbs hit another industry! Apple AirPods production at Foxconn India unit faces hurdles; here's what's happening
China's rare earth export curbs hit another industry! Apple AirPods production at Foxconn India unit faces hurdles; here's what's happening

Time of India

timea day ago

  • Business
  • Time of India

China's rare earth export curbs hit another industry! Apple AirPods production at Foxconn India unit faces hurdles; here's what's happening

In the Indian market, Apple's primary suppliers include Foxconn and Tata Electronics. (AI image) China's rare earth metal export curbs may soon begin hitting production of Apple AirPods in India. China has stepped up restrictions on exports of rare earths and various industry sectors have raised the alarm on the possible impact of the unavailability of these important components. AirPods components include rare earth elements such as neodymium and dysprosium. Neodymium, which is utilised for its magnetic properties, is available from multiple sources including China. According to an ET report, manufacturing of Apple AirPods faces challenges at Foxconn's Telangana facility due to the limited availability of dysprosium. The company maintains that production continues unaffected as of now. The facility started the AirPods manufacturing in April 2023, aligning with Apple's initiative to expand manufacturing beyond China. The FIT (Foxconn Interconnect Technology) manufacturing unit is situated at Kongara Kalan, approximately 45 km away from Hyderabad. Also Read | Donald Trump warns Apple about 'Make in India', will Tim Cook-led iPhone maker listen? FIT, which trades on the Hong Kong Stock Exchange, is a principal subsidiary of the Taiwanese electronics manufacturing giant Hon Hai Technology Group (Foxconn). Foxconn's Course of Action Sources told the financial daily that Foxconn has raised the issue of supply shortages with Telangana government officials. AirPods Production in India The Telangana government has in turn escalated the issue to the DPIIT, sources said. "Foxconn has sought the state government's help to get the end user certificate (EUC) certified and attested by central ministries," the source told ET. An EUC basically is a documentation that aims to confirm who the final recipient of the product will be what will the product be used for. This is particularly needed by China for items that are perceived to be susceptible to misappropriation or alternative usage. "Foxconn obtained the end user certificate from the ministry of external affairs and the Chinese embassy, as part of the process," another source revealed. "Subsequently, Foxconn's supplier submitted it for approval (of dysprosium exports) to the Chinese government. However, approval remains pending from the (Chinese) government. The supplier will proceed with rare earth metal export once approved." In the Indian market, Apple's primary suppliers include Foxconn and Tata Electronics. Globally, Foxconn is Apple's largest contract manufacturer. Also Read | Why Apple won't find it easy to move iPhone production from India to US Impact of China's Rare Earth Export Curbs China has imposed export restrictions on seven categories of medium and heavy rare earth elements — samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium-related items — in early April as a countermeasure to US President Donald Trump's tariff threats. On July 18, the India Cellular and Electronics Association (ICEA), whose members include Apple and Foxconn, notified the government about delays and increased costs resulting from these restrictions. "Production at the Foxconn AirPods facility experienced a temporary reduction, but conditions have since stabilised," an industry representative was quoted as saying. "Despite extended metal procurement timelines, the organisation has the situation under control." "The logistics division at Foxconn anticipates receiving authorisation by month's end," according to the second source mentioned previously. "The standard processing duration from application submission to approval spans 45-50 days. Foxconn continues operations with their existing stock of rare earth metals and dysprosium to sustain production until additional supplies arrive." Earlier this month, reports emerged that Foxconn had withdrawn more than 300 Chinese engineers from its Indian iPhone production facilities, allegedly following Beijing's instructions. While industry experts suggested that Taiwanese professionals could potentially replace Chinese engineers, they emphasised that the primary concern lay with access to machinery and metals, as restrictions on these resources could significantly impact operational sustainability. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

Apple Ships $5-Billion iPhones From India In Q1 FY26, India's Smartphone Exports Hit $7 Billion
Apple Ships $5-Billion iPhones From India In Q1 FY26, India's Smartphone Exports Hit $7 Billion

News18

time4 days ago

  • Business
  • News18

Apple Ships $5-Billion iPhones From India In Q1 FY26, India's Smartphone Exports Hit $7 Billion

Last Updated: India's total smartphone exports cross $7 billion in the June quarter, marking over 40% growth year-on-year from approximately $5 billion in Q1 FY25. Apple has exported over $5 billion worth of iPhones from India during the April–June quarter of FY26, accounting for nearly 70% of the country's total smartphone exports, according to preliminary data reviewed by Moneycontrol. This is a sharp rise from around $3 billion in the same quarter last year, underscoring India's growing role in global electronics manufacturing. Fuelled by Apple's ongoing production ramp-up via Foxconn and Tata Electronics, India's total smartphone exports crossed $7 billion in the June quarter, marking over 40% growth year-on-year from approximately $5 billion in Q1 FY25. While Apple's iPhone exports remained strong, they were slightly lower than the January-March quarter, when shipments touched Rs 48,000 crore ($5.58 billion). That earlier spike was partially driven by Apple building inventory ahead of new U.S. import tariffs effective April 2. A slight dip in Q1 is typical, as global demand softens in anticipation of new iPhone launches in September. Foxconn and Tata Lead the Export Charge Foxconn contributed the majority of iPhone shipments in the quarter, with Tata Electronics — which recently took over Pegatron's operations — also playing a significant role. A large portion of India-made iPhones continues to be exported to the US market. Moneycontrol report cited an industry executive as saying. The executive further noted that the entire $2 billion jump in India's electronics exports in Q1 came solely from smartphones. In FY25, India's smartphone production touched $64 billion, with exports accounting for $24.1 billion — or about 38% of the total output. From being ranked 167th among export categories in FY15, smartphones have now emerged as India's third-largest export by FY25, trailing only engineering goods and petroleum products. China's Informal Restrictions Raise Concerns The Indian Cellular and Electronics Association (ICEA), which represents major players including Apple, Foxconn, Tata Electronics, Google, Dixon, Lava, Oppo, and Xiaomi, has raised alarms over China's informal trade restrictions. In a letter dated July 1 to IT Minister Ashwini Vaishnaw, ICEA warned that such disruptions pose a risk to India's $32 billion export-linked electronics manufacturing and the gains made under the Production Linked Incentive (PLI) scheme. The industry describes these measures as 'carefully calibrated" restrictions that are impacting the import of capital equipment, critical minerals, and Chinese skilled technical personnel — resources vital for scaling up electronics production. 'The interventions by the Government will ensure supply chain continuity, enable technology transfers, and—most importantly—preserve India's competitiveness as a manufacturing hub by keeping overall manufacturing costs low," ICEA Chairman Pankaj Mohindroo wrote in the letter, which was also sent to the Prime Minister's Office, Ministry of External Affairs, and DPIIT. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

Tata Electronics & Bosch Inks Pact For Key Tech Products
Tata Electronics & Bosch Inks Pact For Key Tech Products

Entrepreneur

time6 days ago

  • Automotive
  • Entrepreneur

Tata Electronics & Bosch Inks Pact For Key Tech Products

Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Tata Electronics, an Indian electronics and semiconductor manufacturing company, and Robert Bosch GmbH, a global supplier of technology and services, announced a Memorandum of Understanding (MoU) to collaborate on several key areas within the electronics and semiconductor industries. The MoU is to collaborate on chip packaging and manufacturing at Tata Electronics' upcoming assembly and test unit in Assam and foundry in Gujarat. A secondary exploration field is identifying and pursuing local projects within electronic manufacturing services (EMS) for vehicle electronics with mutual benefit to both companies. This partnership will focus on key technology products for advanced automotive electronics. Dr. Randhir Thakur, CEO and MD of Tata Electronics, said, "We are excited to partner with Bosch to help Bosch create a robust and reliable supply chain for key technology products. This partnership is well-aligned with our commitment to help create a holistic semiconductor and electronics ecosystem in India, with offerings that resonate with customers around the world. Most importantly, our collaboration is yet another significant step towards creating a leadership position for the Indian electronics manufacturing sector on the global stage." "Bosch recognises the increasing demand for advanced automotive electronics and their critical role in shaping the future of mobility. To address the growing needs and foster supply chain resilience, Bosch is pleased to foster partnership with Tata Electronics, a key player and innovation leader in the Indian market. This move signifies Bosch's and Tata Electronics' commitment to local collaboration and acknowledges the strategic importance of the burgeoning automotive sector in India," said Dirk Kress, executive vice president semiconductor operations, Robert Bosch GmbH. The MoU was signed by Dr Randhir Thakur, CEO and MD, Tata Electronics, and Dirk Kress, executive vice president semiconductor operations, Robert Bosch GmbH. Tata Electronics set up its semiconductor assembly & test, foundry, and design services in 2020 as a greenfield venture of the Tata Group, the company aims to serve global customers through integrated offerings across electronics and semiconductor value chain.

Tata Electronics, Bosch ink pact for semiconductor, auto tech projects
Tata Electronics, Bosch ink pact for semiconductor, auto tech projects

Business Standard

time6 days ago

  • Automotive
  • Business Standard

Tata Electronics, Bosch ink pact for semiconductor, auto tech projects

Tata Electronics has signed a memorandum of understanding (MoU) with German tech giant Robert Bosch GmbH to work together in key areas of the electronics and semiconductor sectors. The memorandum of understanding (MoU) outlines plans for collaboration in chip packaging and manufacturing, news agency PTI reported. The two companies will focus their efforts at Tata Electronics' upcoming assembly and test facility in Assam, as well as its semiconductor foundry in Gujarat. Randhir Thakur, CEO of Tata Electronics, said the partnership aligns with the company's broader goal of supporting India's semiconductor ecosystem. 'This partnership is well-aligned with our commitment to help create a holistic semiconductor and electronics ecosystem in India, with offerings that resonate with customers around the world," he said. In addition to semiconductor manufacturing, the collaboration will explore local projects in the area of vehicle electronics. Both companies aim to expand their work in electronic manufacturing services for the automotive sector. 'Bosch recognises the increasing demand for advanced automotive electronics and their critical role in shaping the future of mobility. To address the growing needs and foster supply chain resilience, Bosch is pleased to foster partnership with Tata Electronics,' said Dirk Kress, executive vice-president of semiconductor operations at Robert Bosch GmbH. The partnership is seen as a major step forward for India's ambitions in electronics and semiconductor manufacturing. It also highlights the increasing interest of global technology companies in India's growing manufacturing potential. Tata Electronics, BEL join hands to develop semiconductor solutions In June, Tata Electronics signed a MoU with Bharat Electronics Limited (BEL) to jointly work on electronics and semiconductor solutions. BEL, a Navratna PSU under the Ministry of Defence, will partner with Tata Electronics to build end-to-end semiconductor and electronics systems tailored to India's needs. The collaboration will cover areas such as chip design, outsourced semiconductor assembly and test (OSAT), and semiconductor fabrication, with Tata Electronics supporting BEL's existing and future product lines. Both companies will focus on developing microcontrollers (MCUs), systems-on-chip (SoCs), monolithic microwave integrated circuits (MMICs), and other processors crucial to the electronics ecosystem. Tata Electronics expands display chip plans in Gujarat In March, Tata Electronics also announced a new display chip fabrication facility in Dholera, Gujarat. The plant will be set up in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) and Himax Technologies, PTI had reported. Display chips manufactured at the upcoming facility will be used in products such as TVs, smartphones, LEDs, OLEDs, and camera sensors. While Vedanta Group had also proposed a display fab in Gujarat, its plan has yet to receive government approval. Tata's entry positions it across all major semiconductor manufacturing segments.

Tata Electronics, Bosch sign pact for electronics, semiconductor production
Tata Electronics, Bosch sign pact for electronics, semiconductor production

Time of India

time6 days ago

  • Automotive
  • Time of India

Tata Electronics, Bosch sign pact for electronics, semiconductor production

New Delhi: Electronics manufacturer Tata Electronics has signed a pact with German technology firm Robert Bosch GmbH to collaborate on several key areas within the electronics and semiconductor industries, the Indian technology firm said on Thursday. Under the memorandum of understanding signed between the two companies, Tata Electronics and Bosch intend to collaborate on chip packaging and manufacturing at Tata Electronics' upcoming assembly and test unit in Assam and foundry in Gujarat. "This partnership is well-aligned with our commitment to help create a holistic semiconductor and electronics ecosystem in India, with offerings that resonate with customers around the world. Most importantly, our collaboration is yet another significant step towards creating a leadership position for the Indian electronics manufacturing sector on the global stage," Tata Electronics CEO Randhir Thakur said. Both companies will also identify and pursue local projects within electronic manufacturing services for vehicle electronics with mutual benefit to both companies. "Bosch recognises the increasing demand for advanced automotive electronics and their critical role in shaping the future of mobility. To address the growing needs and foster supply chain resilience, Bosch is pleased to foster partnership with Tata Electronics," Robert Bosch GmbH Executive Vice President Semiconductor Operations Dirk Kress said.

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