A company executive from Salcomp, a supplier to Apple (AAPL.O) based in Finland, announced on Monday that they are aiming to increase their workforce in India by more than double to a total of almost 25,000 employees within the next three years.
According to Sasikumar Gendham, the Managing Director of Salcomp Manufacturing India, the China Plus One strategy is currently experiencing its height of popularity, causing the entire supply chain to search for alternative options. He believes that India is positioned to become one of the most favorable alternatives. “It’s time to really diversify and decluster supply chain beyond China,” he added.
According to Gendham, Salcomp, a significant supplier of chargers to the iPhone manufacturer, is in the process of establishing a housing complex equipped with educational and entertainment facilities to accommodate approximately 15,000 individuals.
In 2019, Salcomp reached a deal to acquire a facility in Chennai, previously owned by Finnish telecom equipment maker Nokia (NOKIA.HE), and began operations in 2020. Currently, Salcomp employs around 12,000 people in Chennai, with the majority (85%) being women.
As reported by Reuters last year, another Apple supplier, Foxconn (2317.TW), has also outlined plans to increase its workforce at its iPhone factory in India by four times within two years.
Presently, at least three of Apple’s global suppliers assemble iPhones in India: Foxconn and Pegatron (4938.TW) are located in Tamil Nadu, while Wistron (3231.TW) is situated in the neighboring state of Karnataka.
According to JP Morgan analysts, by 2025, it is estimated that Apple may produce one out of every four iPhones in India, and the production of all Apple products, including Mac, iPad, Apple Watch, and AirPods, outside of China is expected to increase from 5% currently to 25% by 2025.