Titan and Murugappa to manufacture camera components to reduce reliance on China
- In Reports
- 04:46 PM, Apr 16, 2024
- Myind Staff
According to the reports, Apple is in advanced discussions with Murugappa Group and Tata Group’s Titan Company to assemble, and potentially manufacture, sub-components for iPhone camera modules. If the talks prove successful, it will deepen the Indian supplier ecosystem for the Cupertino company as it relocates more of its operations from China.
Apple currently lacks Indian suppliers for the camera module integrated into its iconic phones, despite the assembly of several models taking place in India. One source mentioned that partnering with either Titan or Murugappa Group could potentially resolve this issue.
Within a span of five to six months, Apple aims to determine which partner to collaborate with. The camera module represents a crucial component and is currently among the "most significant challenges for Apple in India," source.
Titan is known for its expertise in manufacturing precision components, particularly for watches and jewellery. The Murugappa Group, headquartered in Chennai, boasts a legacy of over a century and is a prominent industrial conglomerate with diverse interests spanning engineering, financial services, and chemicals.
Reports on April 11 indicated that Apple is actively exploring the relocation of at least half of its supply chain operations to India. Additionally, the tech giant aims to enhance local value addition from suppliers by nearly 50% within the next three years.
Emails sent to Apple, Murugappa Group, and Titan remained unanswered until the press deadline. Industry experts believe that Apple is expected to commence the assembly of the camera module in India.
According to sources familiar with the situation, initiating module assembly serves as a solid groundwork to attract various sub-assembly manufacturers and establish a comprehensive local value chain, encompassing image sensors, lenses, and the entire camera module. The US tech giant is increasingly turning to local sources for products it encounters challenges in sourcing from its current suppliers.
Engagements with Titan and Murugappa exemplify the company's efforts to bolster its presence in India. Both conglomerates possess extensive expertise in high-precision manufacturing.
Tata Group, of which Titan is a subsidiary, may progress from camera module assembly and sub-component production to eventual manufacturing in the fabrication facility.
Additionally, both Tata and Murugappa Group have submitted applications and met the criteria for government incentives to establish a semiconductor chip assembly unit in India. Furthermore, the Tata Group is in the process of constructing an $11-billion chip fabrication plant in Dholera, Gujarat.
Image source: Hindustan Times
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