Apple adds suppliers in China despite efforts to spread out production, underscoring country’s major supply chain role

Apple’s newly added mainland suppliers include Baoji Titanium Industry, an alloy manufacturer based in western Shaanxi province that counts aircraft makers like Boeing and Airbus as clients and also serves the shipbuilding sector.

Another addition was San’an Optoelectronics, a display technology company based in Xiamen city in southeastern Fujian province. It is believed to be supplying mini-LED chips for Apple’s iPad Pro and MacBook Pro, according to Chinese media.

Other additions include Shenzhen BSC Technology, which provides smart manufacturing solutions, Zhejiang Tony Electronic, which specialises in semiconductor materials, and Jiuquan Iron & Steel.

Apple, which is known to adjust its contractor list every year based on reasons such as quality issues and environmental concerns, also signed back three Chinese suppliers that were previously dropped.

They were smart electronics devices solutions provider Jones Tech, metal and plastic chassis assembler Zhenghe Group and printing and packaging company Paishing Technology.

Mainland China accounts for the lion’s share of Apple’s 13 new suppliers last year. Two were from Taiwan, while Japan, Norway and India each contributed one.

Still, Apple has been working to reduce its reliance on Chinese suppliers by increasing production in South and Southeast Asia.

While the country contributes just under 2 per cent of the factories where Apple’s suppliers conduct manufacturing, its shipments are skyrocketing.

iPhone exports from India are set to nearly double to US$12.1 billion this financial year from US$6.27 billion a year earlier, according to intelligence firm The Trade Vision.