Foxconn Expands iPhone Manufacturing Unit in India to Diversify Apple’s Supply Chain

BY Dave Johnson

Published 5 Aug 2022

Foxconn to increase iPhone production in India

Foxconn — Apple’s largest supplier — is reportedly expanding its Tamil Nadu factory to boost iPhone production in India.

In April 2020, Foxconn announced that it would double iPhone production in India to meet the growing local demand. Now it appears that the company is making good on that promise. 

According to the Economic Times, the Apple supplier is building another manufacturing unit within its Tamil Nadu facility. The report suggests that Foxconn could complete the expansion and begin hiring before November 2022.

Since Foxconn is expanding the facility in a Domestic Tariff Area, Apple can sell the devices built there locally. The new production unit provides a prime opportunity for Apple to expand its supply chain outside China and Vietnam. 

The Chennai factory has recently reopened following a shutdown. It resulted from food poisoning among the facility workers, leading to a protest. 

The effort will help Apple diversify its supply chain. However, it’ll also provide an opportunity to sell more iPhones in India. 

Using Foxconn Expansion to Sell More iPhones in India

Apple’s CEO, Tim Cook, has repeatedly emphasized the need to get a foothold in the growing market of India — and that’s not surprising. India is now one of the best-performing markets for the tech giant. 

The company shipped over 1.5 million iPhone units in India in 2020 to gain 4 percent of the country’s smartphone market. That’s a 100 percent growth from the previous year. 

It’s no wonder Apple is still looking to open its flagship India retail store despite the several delays. 

Earlier in the year, Foxconn suspended iPhone production in its Shenzhen factory due to a COVID-19 lockdown. While work has resumed, reports suggest that the China-based facility isn’t working at total capacity. 

Expanding production in India could help address this issue. Foxconn intends to hire twice as many staff at the Chennai plant to produce more iPhones.