Foxconn plans to invest $1 billion in Tamil Nadu to set up its new display assembly facility. However, the timeline is not fixed yet; according to the Economic Times, Foxconn wants its facility to be up and running “as soon as possible.”
Someone mentioned to Economics Time, “Foxconn has picked up about 500,000 square feet at a plug and play facility at the ESR Oragadam Industrial & Logistics Park, which is right next to their smartphone assembly unit near Chennai.”
This will be Foxconn’s first such facility in India, primarily to cater to Apple’s growing demand in the country. Moreover, the facility will also enable other contract manufacturers, like Pegatron or Tata Electronics, to use components from its unit rather than import them from China.
Foxconn’s expansion of its supply chain in India aligns with Apple’s strategic move to develop iPhones in India and diversify them away from China. The Cupertino-based tech giant has been increasingly focusing on India, leveraging partners like Foxconn, which has notably scaled up its operations.
A consulting firm executive monitoring the industry noted that it is “significant” for a manufacturer to assemble display modules in India. India depends heavily on imports for its display requirements, leading to higher input costs and supply chain challenges. According to him, display modules are predominantly imported from China, 60-65% across segments and up to around 90% in specific segments—and South Korea, the second-largest supplier at 20-25%.
