＂ESG Weekly＂： Does the largest consortium in India take over the Apple foundry Apple Push Publication of the supply chain to diversify other multinational companies？

"Science and Technology Board Daily" January 11 (edited Tian Xiao) Recently, media reports said that the largest consortium in India and Weicheng Capital Company have negotiated for several months.A large iPhone assembly factory will make Tata the first iPhone founder in India.

It is reported that Wei Chuangzi is one of the three major assembly vendors of Apple's iPhone in India, and the other two are Foxconn and Waguan.In 2020, Wei Chuangzhi sold its iPhone production line in India.After the acquisition is completed, Tata will take over all 8 iPhone production lines and 10,000 workers, including thousands of engineers.Weixian may continue to be an Indian iPhone service partner, and can use Apple's global supplier ecosystem.

Apple reshapes the supply chain, the road barrier is long and long

For Foxconn former US executive Alan Yeung publicly stated, "In the past, people did not pay attention to the risk of concentrated supply chain, free trade is normal, and the market can be expected. Now we have entered a new world."

With the global supply chain fluctuations brought by factors such as the new crown epidemic and geopolitical politics, the popularity of the ESG goals also emphasizes the importance of the security of corporate supply chainMumbai Wealth Management. Under various opportunities, Apple's reinvention of the supply chain has become increasingly obvious in recent years.According to the analysis of Apple's supply chain data, in the five years of 2019, in the Apple supply chain production base, Indian supplier bases accounted for 44%to 47%, but this proportion fell in 2020 to41%, further dropped to 36%by 2021.Mumbai Investment

Tianfeng International Securities Analyst Guo Mingzheng said that Apple's long -term goal is 40% to 45% of the iPhone from India. At present, this proportion is only single.In addition, Vietnam is expected to undertake more manufacturing tasks of other Apple products, such as AirPods, smart watches and laptops.

Morgan Chase expects Apple to transfer about 5% of the iPhone 14 to India from the end of this year. By 2025, it will produce a quarter of iPhone in India, as well as about 25% of the Mac PC, iPad, Apple WatchApple products.

Not only focusing on India, Reuters data shows that Apple will increase investment in India and Vietnam, as well as increased procurement from Taiwan, the United States and other places, and reshape its global supply chain structure.Varanasi Investment

Eddie Han, a senior analyst of Saiah Research, believes that Apple hopes to reduce its risks faced by suppliers too concentrated."They want to have two or more sources of supply on each component or value chain. Each company is required to have two or more factories in different places. The proportion of balanced suppliers and regions is Apple.In the event, the competitive second supplier is conducive to reducing costs, and decentralized production bases help reduce risks. "

In 2021, Apple and BOE reached the OLED screen supply cooperation. Eight foundries, which have also landed in India, have also landed in India, including the Foxconn mobile phone assembly production line.

Although the speed -up is obvious, Apple's reshaping of the supply chain will still be a long -term and long process.Peng Luping, an analyst at the research institution, believes that "the transfer of the supply chain is a plan that requires up to ten years. Besides, Apple still has a huge market in India, which is unavoidable by Apple."

Elifre Dimman, an associate professor of Indian Labor at the University of Cornell, said that although the diversification of the supply chain of Apple and other companies is expected to accelerate, the Indian supply chain will not disappear overnight. For these companies, decouragementIt is unrealistic.

Is localization and diversification of the supply chain security optimal solution?

Not only did Apple's multinational companies act.The report issued by the Ministry of Commerce's International Trade Economic Cooperation Research Institute, "The Re -selection of multinational companies in India: Global Supply Chain", shows that the global supply chain is developing in the direction of diversification, near -shore, and localization.On the one hand, multinational companies are combining its key target markets to gradually shrink to a highly decentralized production process and links to a country (region) or neighboring countries (regions) for production to promote the supply chain's near -shore layout; on the other hand,In order to reduce the risk of single supply dependence, multinational companies carry out diversified procurement and layout, and implement the strategy of diversified and decentralized supply chain.

For example, Tesla's vice president of Foreign Affairs Tao Lin has recently revealed that Tesla's current supply chain's homeization rate has reached 95%.Toshiya Hari, the general managing director of Goldman Sachs, said at the conference call of November last year that "governments of various countries will definitely promote the localization of semiconductor production, not only the US government, but also India, other parts of Asia and the European Union."

However, although the diversified and localized strategy helps to ensure the security of the supply chain, as ESG targets have become more and more refined by the requirements of enterprise supply chain management, the decentralized supply chain itself will also challenge the ESG practice of enterprise ESG.

Moody's in a report pointed out that the decentralized supply chain with a wide range of geographical coverage may be difficult to monitor the behavior of partners, especially those partners in the distant jurisdiction. The corruption in the supply chain may lead to legal lawsuits and reputation.damage.If suppliers lack appropriate internal control, companies will not be able to determine their real financial conditions, as well as their ability to monitor, manage and report ESG issues.

It can be seen that in addition to promoting the "multi -bloom" of the supply chain, Apple is also strengthening its own supply chain dominance.

According to reports, Apple plans to use the company's own custom display screen on mobile devices as early as 2024. This is to reduce dependence on partners such as Samsung and LG, and introduce more internal components in the device.

People familiar with the matter revealed that the company's goal is to start replacing the maximum Apple Watch display by the end of 2024. The current OLED standard will be upgraded to MicroLED technologyBangalore Investment. Apple also plans to use this display on other devices, including iPhone intelligence, including iPhone intelligencecell phone.

Earlier, Apple has abandoned Intel's chip in Mac computers and instead adopted an internal design M series chip. The company plans to take the same practice for key wireless components in its iPhone.

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