According to a business executive, Foxconn, a large supplier to Apple, plans to more than double both its personnel and investment in India over the course of the coming year. The Taiwan-based tech company, which is recognised as the largest electronics contract manufacturer in the world, has been expanding quickly in India, investing in manufacturing facilities, notably in the southern parts of the nation, in an effort to diversify away from its dependence on China.
V Lee, Foxconn’s representative in India, announced the company’s ambitious goals in a LinkedIn post honouring Indian Prime Minister Narendra Modi’s 73rd birthday: “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India” by the same time next year. However, precise information on this expansion was omitted.
Foxconn’s large investment of $600 million
Foxconn currently runs an iPhone manufacturing factory in Tamil Nadu with a sizable staff of 40,000 people.
The state of Karnataka announced Foxconn’s large investment of $600 million for two crucial projects within the state in an important move in August. These initiatives, which demonstrate the company’s strategic investment objectives, centre on producing iPhone case components and chip-making machinery.
The previous month, during an earnings briefing, Chairman Liu Young-way stressed the potential they see in India and said, “Several billion dollars in investment is only a beginning,” highlighting Foxconn’s ambition to further establishing itself inside the Indian market.
Foxconn is apparently also giving employees bonuses in an effort to stop production of iPhones from being disrupted like it was last year. With the recent debut of its Mate 60 series, local tech giant Huawei is posing a fresh threat to Apple in China.
A job listing from Taipei, Taiwan-based Foxconn states that its Product Enclosure Business Group is giving signing incentives of 6,480 yuan ($880) per individual at its manufacturing facility in Zhengzhou, the provincial capital of central Henan. The article also said that the Product Enclosure Business Group at Foxconn is in charge of Apple’s mechanical components. With the newly hired personnel, the plant should be able to meet demand for Apple’s newest goods, including the just-released iPhone 15 series.
According to a recent report by The Economic Times (ET), which cited sources with knowledge of the situation, the iPhone contract manufacturer is also in talks with chip manufacturing giants Taiwan Semiconductor Manufacturing Co (TSMC) and Japan’s TMH Group for a joint venture (JV) technology partnership to set up semiconductor fab units in India.
According to the report, Foxconn will shortly conclude the terms of the alliance to produce both advanced and legacy node chips. The business has been in communication with TSMC and TMH Group for a sizable amount of time. One of the biggest chip foundries in the world is TSMC in Taiwan, and TMH focuses in operating and maintaining manufacturing equipment as well as providing solutions connected to semiconductors.
Numerous well-known semiconductor firms, including AMD, Apple, ARM, Broadcom, Marvell, MediaTek, and Nvidia, frequently use TSMC’s chips.
Effort to close the gap between its operations in India manufacturing base in China
Apple only assembled a small portion of its iPhones in India prior to the iPhone 14, which put India’s production six to nine months behind China’s. Last year, that delay was significantly reduced, and by the end of March, Apple had produced 7% of its iPhones in India. Although suppliers are not yet confident they will succeed, the objective for this year is to move closer to parity on shipment timing from India and China, the people said, asking not to be identified since the information is private.
The volume of the iPhone 15’s production in India will rely on the ease with which Foxconn’s factory outside of Chennai can ramp up its production lines and the ready availability of components, which are mostly imported.
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