Apple is Warning their Suppliers to follow China’s rules on ‘Taiwan’ Labeling while expanding iPhone production in India
According to a new report this morning, Apple Inc has asked suppliers to ensure that shipments from Taiwan to China strictly comply with Chinese customs regulations after a recent visit by House of Representatives Speaker Nancy Pelosi to Taipei stoked fears of rising trade barriers.
According to Nikkei Asia, Apple told suppliers today that China has started enforcing a long-standing rule that Taiwanese-made parts and components must be labeled as being made either in “Taiwan, China” or “Chinese Taipei.”
The iPhone maker told suppliers that China had started enforcing a long-standing rule that Taiwanese-made parts and components must be labeled as made either in "Taiwan, China" or "Chinese Taipei", the report added, citing sources familiar with the matter.
Apple iPhone assembler Pegatron Corp said its mainland China plant is operating normally, in response to a media report that shipments to Pegatron's factory in China were being held for scrutiny by Chinese customs officials.
Taiwanese supply and assembly partners Foxconn and Pegatron are ramping up manufacturing efforts as Apple is set to launch its new iPhone in September.
At the same time, a report from South China Morning Post states that Foxconn is expanding its iPhone production in India, further diversifying supply chain away from mainland China.
Apple supplier Foxconn Technology Group is reportedly adding extra iPhone production capacity to an existing factory in India as part of its push to diversify its supply chain beyond China.
Taiwan-based Foxconn, the world’s biggest electronics contract manufacturer, will soon start iPhone production in a new building at an existing factory near Chennai, capital of the southern Indian state of Tamil Nadu, according to local media The Economic Times, citing unnamed sources.
The move follows the company’s hiring spree in the country in recent weeks, the report said. You could read more about this report here.
Ming-Chi Kuo adds on his Twitter sited this morning that “Foxconn's iPhone production site in India will ship the new 6.1" iPhone 14 almost simultaneously with China for the first time in 2H22 (India being one quarter or more behind in the past).” Kuo added that “It implies that Apple is trying to reduce the geopolitical impacts on supply and sees the Indian market as the next key growth driver.”