Foxconn is considering investing $1 billion to establish a plant in Tamil Nadu to produce smartphone display components, according to The Economic Times. This will be Foxconn’s first display module plant built in India, and it is expected to largely assist Apple iPhone manufacturing. Other manufacturers, such as Pegatron or Tata Electronics, may be able to employ components produced at this site, thereby lowering dependency on Chinese imports.
Foxconn has secured 500,000 square feet in an industrial park in Oragadam, near Chennai, adjacent to its current smartphone assembly factory, according to the report. Industry analysts feel that this step will help India progress up the value chain in electronics production. According to Tarun Pathak, research director of Counterpoint,
Local display assembly might contribute 2-3% value to the Indian manufacturing process, in addition to the 5% added by phone assembly. The company’s new display unit may also help it expedite its ambitions to manufacture Google Pixel phones in India. Foxconn is aggressively developing its smartphone business in India and intends to penetrate new markets such as electric vehicles (EVs), batteries, and semiconductors.
Currently, India imports the majority of its display modules from China and South Korea. An executive told The Economic Times that establishing local assembly operations might minimize supply chain delays and expenses, benefiting brands by decreasing delivery time. Samsung Display, BOE Technology, and LG Display are among the leading worldwide display module manufacturers.
Challenges persist, notably in obtaining components, which are still primarily sourced from China, and developing a qualified workforce in sophisticated display technology. Foxconn’s expanded supply chain in India is consistent with Apple’s overall aim to lessen reliance on China. Apple is actively expanding operations in India as part of its cooperation with Foxconn to diversify its production base.