Top Apple Supplier Foxconn Plans Major Expansion in Chennai iPhone Facility

Apple CEO Tim Cook’s Visit to India to Launch Its First Store in the Country coincides with increased production and effort in India.

Foxconn is potentially planning to expand its manufacturing facility in India. It plans the expansion with two additional buildings at its site in Chennai. Apple will also likely build a research and development centre in Bengaluru’s Whitefield.

Apple CEO Tim Cook’s visit to India to launch its first store in the country signalled its growing ambitions in the world’s second-largest smartphone market.

The market research analyst Ashweej Aithal at Canalys said that reason for Foxconn’s aggressive expansion plans is the sharp increase in exports of Apple products from India

In March, Apple exported nearly 2.5 million iPhones from India. Out of which 1.3 million were to the US alone. In FY23, Apple’s iPhone exports from India surged four times per year to cross $5 billion.

Neil Shah, a partner at Counterpoint Research, evaluates that India-based plants produced three million iPhone units before the Covid-19 pandemic, of which about half a million or one million were exported.

However, with China’s stringent zero-Covid policies, changing geopolitics, and worker protests at Chinese plants, Apple realized the need to diversify beyond China.

Neil Shah said that Apple wants 20-25% of global iPhone production to happen in India in the next three to four years. The number stood at 6% at the end of 2022. To achieve this goal, Apple has its main contract manufacturers Foxconn, Wistron, and Pegatron operational in India.

Foxconn’s chairman Young Liu marked his second visit to India in less than a year in March and committed to further investments. Project Elephant, which involves precision machinery, electric vehicles, integrated circuit design, and semiconductor segments, will lay a solid foundation for the company’s multiple plans to consider the state of Karnataka as a potential investment destination.

Apple started to assemble the iPhone 14 models in India in late September and reported an increase in profits and sales from India. While the iPhone 14 was introduced into the Indian assembly line weeks after its global launch, analysts say that it is the iPhone 12 that is mainly being exported from India now.  

Do you think manufacturing for Apple has a bright future in India? Let us know your thoughts below!

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Top Apple Supplier Foxconn Plans Major Expansion in Chennai iPhone Facility

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