Renowned Taiwanese contract manufacturer Foxconn is set to invest approximately $1 billion to establish a display assembly unit in Tamil Nadu, marking the company’s first such facility in India. The unit will primarily support Apple’s iPhone display module production, strengthening Foxconn’s position as a key supplier for the tech giant.
In a strategic move, the facility will also provide components to other manufacturers, including Pegatron and Tata Electronics, enabling them to source locally assembled modules instead of relying on imports from China. This is expected to enhance supply chain efficiency and reduce import dependency.
Foxconn has secured 500,000 square feet of space at the ESR Oragadam Industrial & Logistics Park near Chennai, adjacent to its existing smartphone assembly plant. Industry experts view this development as a significant step in advancing India’s electronic assembly capabilities, with the potential to boost local value addition by up to 2-3%.
The investment is part of Foxconn’s broader plan to expand its operations in India, venturing into sectors such as electric vehicles (EV), batteries, and semiconductors. The company is also set to begin assembling Google Pixel phones in India, further contributing to its growing footprint in the country.
However, challenges like the dependency on Chinese components and a lack of skilled labor in advanced display technologies may pose difficulties as the company ramps up operations. Nonetheless, this move aligns with Apple’s strategy of diversifying its supply chain, with India emerging as a key player in this shift.
