Salcomp, an Apple supplier Salcomp is set to more than double its Indian workforce to over 25,000 over the next three years, according to Reuters citing a top executive at the company on Monday.
This rapid hiring comes amid a diversification effort by the smartphone giant Apple to shift its supply chain away from China after covid-19 related lockdowns and restrictions hampered smartphone production and sales in 2022 and trade the relationship between the US and China continues to sour.
"India is now poised to be one of the best alternatives" as “the whole supply chain is now kind of looking at an alternative”, Managing director of Salcomp Manufacturing India, Sasikumar Gendham, said in an interview.
As the supplier heads for a "significant role" in Apple's supply chain, Gendham says he expects the Indian business to generate at least $2 billion-$3 billion in revenue by 2025, from the less than 40 billion rupees ($484 million) now.
Apple's biggest supplier, Foxconn, is also planning to quadruple the workforce at its iPhone factory in India, a part of Apple's effort to diversify its dependence away from China.
J.P. Morgan analysts estimated last year that 25% of all Apple products would be made outside China by 2025, up from just 5% currently.