Japanese tech giant TDK Corp to make iPhone batteries in India

Japanese tech giant TDK Corp to make iPhone batteries in India

Written by Deepak Bhagat, In News, Published On
December 5, 2023
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The Indian facility of the Japanese electronics segment maker TDK Corp will manufacture Apple iPhone lithium-ion (Li-ion) battery cells.

According to a minister’ announcement on Monday, TDK Corp, a Japanese electronic components manufacturer, would start producing Apple iPhone lithium-ion (Li-ion) battery cells in India. As it seeks to shift some of its manufacturing away from China, Apple has been praising India as its next primary growth driver.

Using Wistron and, subsequently, Foxconn, it started building iPhones in India in 2017. Fourteen suppliers operate nationwide. Deputy Minister for Information Technology Rajeev Chandrasekhar stated on Twitter that TDK will build a manufacturing facility in Haryana, creating several thousand jobs.

The facility’s output will go to Sunwoda Electronics, an Apple supplier of Li-ion batteries, the representative. TDK Corporation will build battery cells on 180 acres in Manesar, Haryana. The project will be similar to Apple’s previous Chinese mega factories and commence production in 12–18 months. Apple’s Li-ion battery assembler, Sunwoda Electronics, will get the created cells.

Apple is bringing its global lithium-ion (Li-ion) battery maker, TDK Corporation, to India in another bid to boost its production in India. Sources told Business Standard that Japan’s largest electronics manufacturer will make battery cells for iPhones built in India. Apple’s Li-ion battery assembler, Sunwoda Electronics, will get the created cells.TDK Corporation to produce iPhone battery cells on 180 acres in Manesar, Haryana. It will be designed like Apple’s other mega factories in China, with residential quarters alongside industrial operations. The factory should begin cell production in 12–18 months.

According to estimates, TDK owns over 60% of the global Li-ion battery cell industry for mobile phones, laptops, and tablets. After buying Hong Kong-based Amperex Technology in 2005, the Japanese company started making Li-ion battery cells.

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The research estimates 8,000–10,000 direct and over 25,000 indirect jobs from the Apple contract. In an X post, electronics and IT minister Rajeev Chandrasekhar verified the news.

TDK, a leading supplier of cells to Apple, is setting up a 180-acre facility in Manesar, Haryana to build cells for #MadeInIndia iPhone batteries, the minister wrote.

In mid-October, TDK Corporation corporate executive and leadership team member Fumio Sashida met with key officials of the Ministry of Electronics and Information Technology (MeitY) in India to explore the deal.

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Apple assembles iPhones in India using Chinese battery cells. Indian device producers import cells for up to INR 25,500 Cr every year, according to industry estimates. Apple values growing iPhones’ domestic value addition (DVA) through local cell manufacture. These cells make up 70% of Li-ion battery cost. Li-ion batteries contribute to 4% of iPhone DVA, whereas cells account for 3%. Depending on the model, iPhones built in India add 12% to 15% value.

Weeks before, the Tata Group bought Wistron’s iPhone manufacturing operation for $125 Mn. Tata bought Wistron’s 10,000-person Karnataka plant to produce the iPhone 14. The salt-to-software company aims to increase Tamil Nadu manufacturing. Apple increased production in India in 2021 due to supply chain problems from the COVID-19 epidemic in China and rising tensions between Beijing and Washington.

Since then, India has become a significant part of Apple’s worldwide supply chain, producing 7% of iPhones. India is another primary Apple market. Apple CEO Tim Cook termed India an ‘exciting market’ in a recent earnings call. Our India income was recorded. We reached strong double-digits. Our market is fascinating and has a big emphasis. With a low share in a vast market, there seems to be a lot of headroom, Cook noted on Apple’s Q4 2023 earnings call.

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