SUMMARY
The factory will be set up in Tamil Nadu which will be expanded if the need arises and employ around 300 people
Corning will be joining hands with its Indian partner Optiemus Infracom to set up this unit
Corning and Apple's association dates back to 2007 when Apple approached the glass specialist about glass for its first-ever smartphone
Apple supplier and US gorilla glass maker Corning Inc is reportedly investing INR 1,000 Cr to build a manufacturing facility in Tamil Nadu, which will likely mark its formal entry into India.
As per ET’s report, the factory will be set up at Pillaipakkam, near Sriperumbudur, which will be expanded if the need arises and will employ around 300 people.
Corning will be joining hands with its Indian partner Optiemus Infracom to set up this unit.
This move also marks the formal entry of another Apple supplier into India, contributing to the growing ecosystem of the smartphone major and electronic component manufacturers in the country, the report said.
Tamil Nadu is already home to some of Apple’s major contract manufacturers, including Foxconn, Pegatron and Tata Electronics.
Earlier in September, the Telangana government said the company had decided to invest in the state. However, sources said that the company picked Tamil Nadu over Telangana because of the electronics ecosystem available in the state as well as the proximity to other Apple suppliers.
People close to the matter also told ET that talks were on for a while but the deal was finalised and sealed last week and the pact will be signed during the Global Investor’s Meet (GIM) slated for January.
“While I choose not to delve into the specifics of potential investment commitments which may be under consideration, I can affirm that Tamil Nadu is diligently crafting an outstanding electronics ecosystem of international standards,” TN industries minister TRB Rajaa told ET.
Corning is a Fortune 500 materials science company known for inventing gorilla glass, a reinforced glass widely utilised in portable devices like mobile phones, tablets and laptops.
Corning, with over 170 years of history, reported Q3 revenue of $3.2 Bn. It is a key player in the tech industry. The company pioneered glass that was thin, lightweight, damage resistant, and responsive to touch which is featured on not just Apple smartphones but other brands like Samsung, Google, Sony, OnePlus, Motorola, Mi, Oppo, Lava, Real Me and Nokia, among others.
Corning and Apple’s association dates back to 2007 when Apple approached the glass specialist about glass for its first-ever smartphone.
As per Apple’s supplier list for the fiscal year 2022, Corning has facilities that supply to Apple in Fujian, Jiangsu and Zhejiang in mainland China, Chungcheongnam-Do in South Korea, Taiwan and Kentucky and New York.
Neil Shah, vice president of Counterpoint Research, called Corning one of Apple’s ‘key’ suppliers when it came to producing durable cover glass screens for iPhones, iPads and other products.
Shah added, “On top of this cover glass will be used on millions of tablets, PCs, wearables and automotive displays going forward. This makes it a very lucrative opportunity for a company like Corning to partake and boost the Make In India supply chain as the entire ecosystem mushrooms in India.”
This comes at a time when Apple is looking to beef up its iPhone production in India to over 50 Mn units annually. The tech giant has now started reaching out to various suppliers across automotive, aerospace and consumer electronics sectors for the critical parts.
Meanwhile, Tata Electronics, a subsidiary of Tata Group, acquired Wistron’s manufacturing facility in Karnataka, entering the assembly of Apple iPhones. The group is reportedly gearing up to construct one of India’s largest iPhone assembly plants in Tamil Nadu’s Hosur.
With a continued focus on the Indian market, Apple looks to double down on production in the country as part of its efforts to reduce reliance on China.
