Back in the day, factories were largely operated by people. Each person would perform one task and pass it down the line. These days, people are still involved, but obviously, shifting to automated systems would make the entire process a lot more efficient. So much so that Apple is now demanding that its suppliers switch to robotics for manufacturing.
Apple wants suppliers to use more robotics
In an exclusive report from DigiTimes, the publication cites sources familiar with the matter who reveal that Apple is now requiring its suppliers to adopt the use of robotics in the manufacturing process. This means that if anyone wants to supply to Apple, having robotics in the manufacturing process is essentially a standard prerequisite.
One of the reasons for this is because Apple wants to minimize its dependency on labor. They also want to stabilize product quality and ensure uniformity across different facilities. This is also part of Apple’s plan to reduce long-term production costs while it diversifies away from China.
However, Apple won’t be the one to fork out the cash to move this automation process along. The report claims that Apple expects its suppliers to fund their own automation upgrades. This is a stark change from the past, where Apple would actually invest in tooling and machinery for its manufacturers.
This isn’t about Apple being generous, but more about the company ensuring that its suppliers can meet its specifications and standards.
Hardly a surprising move
That being said, we can’t say we’re shocked that Apple insists on more automation and less human labor. In the past, some of Apple’s suppliers, such as Foxconn, have encountered issues like worker strikes. By introducing robotics and automation, Apple reduces the chance of these types of things happening again.
There is no doubt that the upfront costs for these manufacturers will be high. However, it might pay off in the long run. First of all, Apple is a huge customer and winning their contracts could ensure the company makes a lot of money. Secondly, these automations could also be used for non-Apple work and improve their overall efficiency.
We’ve already seen how that could pay off. Back when TSMC was trying to land a contract with Apple, it invested billions into its foundries. However, it was a good investment as TSMC now manufactures semiconductors for some of the world’s largest tech companies, such as Apple, NVIDIA, Qualcomm, AMD, and more.
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