Pegatron Corp is now in talks with a second India factory as Apple continues to diversify its production away from China. The company is the Taiwanese supplier of Apple Inc. and is now planning to open a second facility near the southern city of Chennai in Tamil Nadu state.
It can be recalled that the plan follows six months after the opening its first in the country, where the latest iPhones will allegedly be assembled.
Why India?
It seems that Apple is really making India a new place for its growth with approximately $9 billion worth of smartphones being exported from the country between April 2022 and February this year.
Currently, Pegatron accounts for ten percent of Apple's iPhone production in India on a yearly basis.
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The Shift Away from China
Apple is one of the companies that are shifting their production away from China to avoid getting hit due to the Sino-US trade frictions. The Taiwanese supplier has also been trying to expand its footprint in Southeast Asia and North America.
The ongoing trade war between the United States and China has been a major topic of discussion in the international community. The two largest economies in the world have been imposing tariffs on each other's goods, resulting in a significant impact on global trade and economic growth.
The trade frictions began in 2018 when the Trump administration imposed tariffs on Chinese goods, citing intellectual property theft and unfair trade practices. China responded by imposing tariffs on US goods, leading to a tit-for-tat escalation of tariffs on both sides.
The trade war has had a significant impact on both countries' economies, with both experiencing a decline in economic growth. US businesses have been hit hard by the tariffs, particularly those in the agriculture and manufacturing sectors. China's economy has also been impacted, with a decline in exports and a slowdown in economic growth.
The trade war has also had a global impact, with many countries feeling the effects of the tariffs on their own economies. The International Monetary Fund has warned that the trade war could lead to a global recession, with a decline in trade and investment.
In January 2020, the US and China signed a phase one trade deal, which included commitments from China to purchase more US goods and address issues related to intellectual property theft. However, tensions remain high, and the two countries continue to impose tariffs on each other's goods.
The COVID-19 pandemic has further complicated the trade frictions between the US and China, with the Trump administration blaming China for the spread of the virus and threatening to impose additional tariffs.
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