Apple is in serious talks with two Indian companies, Murugappa Group and Titan Company, owned by Tata Group, to put together parts for iPhone cameras. This includes the possibility of Titan and murugappa group to make iphone camera making these parts right here in India. According to insiders, the camera module is a tough nut for Apple to crack in India at the moment.
Titan, known for its precision in making components for watches and jewelry, could play a crucial role in this venture. Meanwhile, Murugappa Group, based in Chennai, has been around for over a century and is involved in various industries like engineering, finance, and chemicals.
Apple Plans to Ramp Up Supply Chain in India
According to a report by ET on April 11, Apple is considering moving at least half of its supply chain operations to India. Additionally, the company aims to increase local value addition from suppliers by nearly 50% in the next three years.
Despite reaching out to Apple, Murugappa Group, and Titan, there has been no response as of press time on Monday.
Experts suggest that Apple might kickstart its operations in India by assembling the camera module. This initial step could pave the way for attracting various sub-assembly manufacturers and establishing a complete local value chain, encompassing everything from image sensors to lenses and the entire camera module. The talks with Titan and Murugappa signify Apple’s efforts to strengthen its presence in India. Both companies possess extensive expertise in high-precision manufacturing.
Murugappa Group and Titan Company are Key Players in India’s Electronics Industry
In 2022, Murugappa Group took a big step by acquiring a 76% stake in Moshine Electronics, a camera module maker based in Noida. This move was aimed at expanding Murugappa’s presence in the electronics and components sector.
Meanwhile, Titan Company, headquartered in Bengaluru, owns Titan Engineering and Automation. Originally starting as an in-house engineering department, it has grown significantly over the years. Today, it serves global clients across various industries, including defence and aerospace, with its high-precision component manufacturing and design services.
Experts believe that Murugappa Group’s acquisition of Moshine Electronics positions it well for future endeavors. There’s speculation that with the right setup, Murugappa could even manufacture image sensors in the future, possibly becoming a key player or partner in Apple’s supply chain in India.
Tata and Murugappa Group Eyeing Semiconductor Manufacturing in India
According to experts, Tata Group, including its subsidiary Titan, could progress from assembling camera modules and sub-components to eventually manufacturing them in a fabrication plant (fab).
Both Tata and Murugappa Group have applied for government incentives to establish semiconductor chip assembly units in India. Additionally, Tata Group is actively involved in constructing an $11 billion chip fabrication facility in Dholera, Gujarat.
Local Manufacturing of Image Sensors May be a Game-Changer for Apple in India
According to Martin Yang from Oppenheimer & Co, image sensor chips are among the most crucial and expensive components in smartphones and their displays. Typically, Apple relies on imports for these components or considers setting up local manufacturing units in India. These sensors are specialized semiconductors, mainly sourced from companies like Sony, Samsung, and Omnivision.
Switching to local suppliers can offer significant cost advantages for Apple and reduce its reliance on Chinese suppliers. With the Production Linked Incentive (PLI) scheme, Apple has been aggressively pursuing manufacturing opportunities in India. Major manufacturing partners like Foxconn, Pegatron, and Wistron (now under Tata Electronics) have already established a significant presence in India.
Recent reports suggest that Apple is exploring partnerships with Indian companies like Aequs Group and Taiwanese firms like Rayprus Technologies for components. Additionally, preliminary discussions are underway with Indian contract manufacturer Dixon Technologies.
Also Read
Tesla and Tata Electronics Sign Deal for Semiconductor Chips
MUFG in Talks to Acquire $1.7 Billion Stake in HDFC’s Subsidiary HDB Financial Services
Zomato Stock Price Hits Record as JM Financial Raises its Target Price
