One of Apple’s major Chinese component manufacturers, Luxshare, has reportedly opted to invest in Vietnam instead of India, citing political tensions between the two nations.
According to media reports, Luxshare’s decision to invest USD 330 million in Vietnam’s northern province of Bac Giang comes after several unsuccessful attempts to expand its operations in India over three years.
Luxshare is a key supplier of Apple’s AirPods and could become an iPhone supplier.
The Vietnamese government recently approved the license for Apple’s manufacturer, bringing the total investment in Vietnam to USD 504 million. This shift in investment may result in a setback for India, particularly as Apple had plans to integrate Indian conglomerates like the Tatas into its supply chain network.
Historically, Apple has heavily relied on China for its manufacturing demands. The move by Luxshare to invest in Vietnam suggests a growing strategic intent from Apple, the world’s most valuable company.
While Apple has started assembling its iPhone 15 lineup in India through Foxconn, manufacturing the flagship iPhone 15 Pro series still occurs outside India.
