Foxconn Aims for Major iPhone Production Surge in India
Foxconn is set to significantly ramp up its iPhone production in India, targeting the assembly of 25 to 30 million units this year. This ambitious goal marks a dramatic increase from the 12 million iPhones produced in the previous year. The expansion aligns with Apple’s strategy to diversify its manufacturing footprint away from China, reflecting a broader trend in the tech industry.
Rapid Expansion in Bengaluru
The Taiwanese electronics giant has been conducting trial operations at its new 300-acre facility in Bengaluru for the past few months. These tests are crucial for assessing the plant’s capability to meet Apple’s stringent quality standards while producing iPhones at the required scale. A source familiar with the operations noted that the successful completion of these trial runs will allow Foxconn to transition to the ‘revenue build’ phase, where the manufactured devices will be prepared for distribution. Foxconn’s increased production capacity in India is part of a larger strategy to bolster Apple’s presence in the region. The company aims to enhance its mobile assembly operations significantly, with projections indicating that India’s share of Foxconn’s total production could rise from 12-16% last year to 21-25% this year.
Strategic Shift Amid Global Challenges
As Apple seeks to reduce its reliance on Chinese manufacturing, Foxconn’s operations in India have seen substantial growth. The company has ramped up its investments in local assembly, driven by the need to adapt to changing global trade dynamics, including the impact of tariffs imposed by the U.S. government. Analysts suggest that Foxconn’s production goals are closely tied to Apple’s broader strategy of diversifying its supply chain. Lori Chang, a senior analyst at Taipei-based Isaiah Research, emphasized that Foxconn’s focus remains on iPhone manufacturing. The anticipated production increase is a response to Apple’s push for a more robust presence in India, which is becoming an increasingly vital market for the tech giant.
Broader Manufacturing Ambitions
In addition to its iPhone production, Foxconn is expanding its operations to include other product lines. The company has established a new unit in Hyderabad dedicated to AirPods production, further diversifying its manufacturing capabilities in India. This complements Foxconn’s existing iPhone assembly operations at the Sriperumbudur campus near Chennai. During a visit to India last year, Foxconn chairman Young Liu expressed the company’s commitment to expanding beyond smartphones. He highlighted plans to develop products in various sectors, including electric vehicles, energy, and digital health. Liu stated, “We want to move up the value chain as much as we can in India,” indicating a long-term vision for growth in the region.
Investment in Semiconductor Manufacturing
Following the dissolution of its semiconductor partnership with the Vedanta Group, Foxconn has announced a £37.2 million investment to establish a chip packaging and testing facility in collaboration with HCL Group. This venture is expected to receive approval soon, with discussions already underway with engineering firms for its construction. This move underscores Foxconn’s commitment to enhancing its technological capabilities in India, further solidifying its role in the global supply chain. As Foxconn continues to expand its operations in India, the company’s strategic initiatives reflect a significant shift in the global manufacturing landscape, driven by the need for diversification and resilience in the face of geopolitical challenges.
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