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Apple’s key contractor, Foxconn, is forging ahead with plans to build a $1.5 billion component plant near Chennai, India. This move further expands the iPhone-maker’s supply chain in the country, even as US President Donald Trump urges the company to bring manufacturing back to the United States.
Foxconn, a long-time assembler of Apple devices, is set to construct a display module facility in Tamil Nadu, a southern state in India, according to two government officials familiar with the matter. The new plant will assist the Taiwanese company in supplying Apple, its primary customer.
This development marks Apple’s ongoing shift towards India and away from China, which has been its main manufacturing hub. The transition had already begun prior to the Covid-19 pandemic, which disrupted global supply chains and prompted Apple to diversify its manufacturing to other countries.
However, the move has become politically charged following Trump’s re-election. The President has been vocal about his desire for Apple to relocate its manufacturing operations to the US, amidst escalating trade tensions with China.
In a recent statement, Trump criticized Apple and its CEO Tim Cook, stating, “We are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India.”
Foxconn recently announced a $1.5 billion investment in its Indian unit Yuzhan Technology India. The company plans to establish a display module assembly unit in the ESR Oragadam Industrial & Logistics Park, adjacent to its existing iPhone manufacturing plant near Chennai.
The investment, approved by Tamil Nadu’s state government, is expected to supply components to Apple. The display module is a critical component in an iPhone, responsible for features such as the touch interface, brightness, and color.
Both Foxconn and Apple have yet to comment on these developments.
According to sources, Apple aims to source all 60 million iPhones sold annually in the US from India by the end of next year. The investment in the display unit near Chennai is one of the largest in India’s electronics industry, bolstered by production-linked incentives from Prime Minister Narendra Modi’s government.
The new plant is projected to create around 14,000 jobs and contribute significantly to India’s electronics manufacturing sector. With the production increase by Apple’s suppliers in southern India, the country is on track to become a major player in the global smartphone market.
India, now the world’s second-largest smartphone market after China, has seen a surge in manufacturing activities, thanks to initiatives like Modi’s “Make in India” campaign. The expansion of production by companies like Foxconn and Tata Electronics underscores India’s potential to become a manufacturing powerhouse.
