Sou Hu Cai Jing·2025-11-25 10:14Core Insights - The article discusses the shifting dynamics of Taiwanese manufacturers in response to Apple's strategic pivot towards India, highlighting the varying responses of major players like Pegatron, Wistron, and Foxconn [3][4][6][11]. Group 1: Industry Dynamics - Taiwanese manufacturers, once dominant in the assembly of iPhones, are now facing existential choices due to Apple's "de-risking" strategy, which pushes them to diversify production away from China [3][6]. - Pegatron has sold its factory to Tata, completely exiting the iPhone assembly business, while Wistron has also sold its factory at a loss to maintain its orders from China [3][9]. - Foxconn, the largest of the three, is betting heavily on India with a planned investment of $30 billion, aiming to replicate its successful model from China [11][13]. Group 2: Apple's Strategy - Apple's strategy emphasizes a "China +1" approach, mandating suppliers to establish a presence in India or risk losing orders, effectively making it a survival issue for Taiwanese firms [6][15]. - The company is focused on securing its supply chain by fostering local giants like Tata, which can navigate the complexities of the Indian market better than foreign firms [15][21]. Group 3: Challenges in India - The Indian manufacturing environment presents significant challenges, including unreliable power supply, logistical issues, and a high turnover rate among workers, which complicates operations for Taiwanese firms [17][19]. - Wistron's factory in Karnataka faced a low yield rate of 55% and operational disruptions, leading to its exit from the market [21]. - Tata has managed to stabilize operations by leveraging local relationships, reducing worker turnover, and improving production efficiency [21]. Group 4: Broader Implications - The article suggests that the shift in production dynamics reflects a broader trend of Taiwanese firms losing their previous dominance and becoming more dependent on local partners in India [3][30]. - The changing landscape indicates a structural shift in global manufacturing, where efficiency is being replaced by security, leading to a new era of uncertainty for all players involved [35][37].