Chennai Plant Set to Witness Expansion of iPhone Manufacturing by Foxconn
- ByStartupStory | April 19, 2023
Foxconn, the manufacturer of iPhones, is planning to enhance its manufacturing capabilities in India by constructing two new buildings at its Chennai plant. This move reinforces Apple’s commitment to expanding its presence in India. The Foxconn India facility is located in Sriperumbudur, near Chennai. According to a source quoted by ET, Foxconn has expressed interest in constructing two additional buildings to manufacture iPhones. These buildings will be separate from the two existing buildings at the Chennai site. In addition, Apple is reportedly exploring the establishment of a research and development center in Bengaluru’s Whitefield, according to two officials cited by the publication.
Apple CEO Tim Cook’s visit to India coincides with the tech giant’s launch of its first two stores in the country, which highlights the company’s commitment to expanding its presence in the region. Cook was in attendance at the Mumbai launch of Apple BKC on April 18. Meanwhile, Foxconn chairman Young Liu has visited India twice in the past year, pledging additional investments during his most recent trip in March. In December 2022, Foxconn announced a $500 Mn investment in its India unit, according to an exchange filing in Taiwan. Furthermore, the contract manufacturer from Taiwan is seeking to invest $200 Mn in its Telangana plant for the production of Airpods.
Foxconn is set to commence construction of an iPhone manufacturing and assembly unit close to Bengaluru International Airport in May. This comes amid reports that Apple may be planning a broader strategy that includes the establishment of an R&D facility. As per reports, iPhone exports from India have quadrupled, reaching $5 Bn in FY23, with iPhone production touching $7 Bn in the same financial year. Meanwhile, Apple’s revenue in the country has surged by 50% to hit $6 Bn in the same financial year.
According to Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar, Apple has emerged as one of the largest job creators in India, generating over 100,000 jobs. The three contract manufacturers in India – Foxconn, Pegatron, and Wistron – currently employ a combined total of 62,300 individuals, a figure that is set to rise as the companies seek to ramp up production. Presently, India accounts for 7% of all iPhones produced.
As Apple looks to diversify its supply chain away from China, India has emerged as a reliable alternative. Union Minister of Commerce Piyush Goyal has stated that Apple intends to raise its production levels in India to 25% of its total output, although he has not provided a specific timeframe for achieving this goal. This move comes after the Cupertino-based tech giant faced challenges due to China’s strict COVID policies.
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