China Becomes the Irreplaceable Chip Market | Why Apple & Others Companies Are Returning to China
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In recent years, there has been a growing trend of shifting production lines from China to countries like Vietnam and India, with Apple leading the way. However, this trend has faced a significant setback. Apple’s plans for manufacturing in India have come to an abrupt end, undermining the idea of reducing China’s manufacturing dominance. The consequences of this setback can be observed in the experiences of companies like Wistran and Foxconn.
Wistran, influenced by Apple’s pressure and incentives, became the pioneer in transferring its production lines to India. In 2020, Wistran sold its factories in mainland China, which had been producing for Apple, effectively terminating its business operations in China. Wistran then invested heavily in building factories in India, hoping to establish a new manufacturing base. However, the reality turned out to be different from their expectations. After more than two years, Wistran’s factory in India had only reached a workforce of 10,000 employees, significantly smaller in scale compared to its 80,000-employee factory in mainland China. Unfortunately, even this smaller factory in India fell prey to the greed of Indian conglomerates, and Tata eventually acquired it. Outraged by this turn of events, Wistran decided to completely withdraw from the Indian market, losing its qualifications for producing for Apple. Wistran became the first casualty of Apple’s efforts to move away from China’s manufacturing.
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