Another Apple supply chain partner is opening a new plant in India by year’s end. The Bloomberg report echoed in India today claims that Taiwan-based cable and connector maker Cheng Uei Precision Industry, also known as Foxlink will start mass production in Chennai, the capital city of the Indian state of Tamil Nadu. The new plant is owned by TC Gou, brother of Foxconn’s Terry Guo.
The company plan to make large investments in India over the next five years to tap into India’s new production-linked incentive (PLI) plan.
Foxlink is one of many foreign companies looking to expand manufacturing to India in the backdrop of the US-China trade war. The development of the cable company comes as Apple has stopped providing chargers as well as earphones for the new generation iPhones. However, the company will still provide cables, the kind Foxlink is likely to supply. The local production of cables along with the assembly of iPhones in India is likely to grant tariff or taxation relief for Apple.
In an odd twist, Foxlink said in a statement last week that a company engineer was caught on internal surveillance video this month damaging automation equipment at the new Indian plant near Chennai. The suspect is a Chinese national, and the incident was reported to local police and Chinese authorities, it said.
It appears that the trend of production moving outside of China to countries like India is beginning to anger the Chinese government. Sabotaging a company’s ability to open on time or to hurt production is a serious sign that the U.S.-China trade war is beginning to get to China.