Apple’s attempt to diversify manufacturing to India is being stymied by New Delhi’s coronavirus crisis
- Apple has been hit by Covid-19 infections at two of its India plants, according to Taiwan media report
- The coronavirus wave is likely to slow handset manufacturing production in India and weaken consumer demand, analysts say
This is the first in a series of stories about the impact of India’s Covid-19 crisis on the Indian and Chinese economies and the global initiative to restructure supply chains.
Apple’s efforts to diversify its production from China to India are being hit by the Covid-19 crisis there, with infections and factory shutdowns prompting analysts to question whether the country can become a smartphone manufacturing and export superpower.
According to a report by Taiwanese news agency CNA on Saturday, Foxconn confirmed that 10 Chinese engineers at its plant in the Indian city of Chennai had been infected with Covid-19. Meanwhile Wistron Corporation, another key player in Apple’s manufacturing chain, closed its plant in south India for five days after a spate of Covid-19 cases, according to the CNA report.
“We can confirm that a small number of employees who worked at one of our facilities in India have tested positive for the Covid-19 virus,” said Foxconn in a statement on Monday.
“We are working to provide the employees and their families with the support they need … we have been working closely with local government and public health authorities in India to address the challenges that we and all companies are facing in dealing with the Covid-19 crisis.”