Apple Inc. is making a strategic move by bringing TDK Corporation, its global supplier of lithium-ion (Li-ion) battery cells, to India. Sources familiar with the matter state that the prominent Japanese electronic component manufacturer plans to establish manufacturing operations in India specifically to produce Li-ion battery cells for iPhones assembled in the country. These Li-ion battery cells manufactured by TDK in India will be provided to Apple's Li-ion battery assembler, Sunwoda Electronics. Currently operating in India, Sunwoda Electronics currently imports these cells from various global sources. The collaboration with TDK signifies a significant shift towards localized production, aligning with Apple's broader strategy to bolster its footprint in the Indian market.

TDK, which acquired Hong Kong's Amperex Technology Ltd in 2005, is making significant investments in India, including the recent acquisition of land in Haryana. This acquisition aims to establish a manufacturing facility capable of producing various components, including Li-ion battery cells. The launch of commercial production is expected to meet the demand for Apple's Li-ion batteries, contributing to the ongoing localization efforts of the tech giant.

This shift denotes a strategic transformation in Apple's supply chain, transitioning toward domestic manufacturing of vital components. The collaboration among Apple, TDK Corporation, and Sunwoda Electronics is predicted to improve operational efficiency, decrease reliance on imports, and bolster the growth of India's manufacturing ecosystem. The anticipated start of commercial production for Li-ion battery cells reinforces Apple's dedication to the Indian market and aligns with the government's 'Make in India' initiative.