Apple’s Supplier Foxconn Looks To Quadruple Indian Workforce

SUMMARY

The move to hire 53,000 workers in India is part of Foxconn’s plan to diversify its supply chain into India

Foxconn is facing disturbances in production and fuelling concerns as China has imposed strict Covid-19 restrictions on global supply chains

Foxconn is also talking to the Tamil Nadu government about accelerating its hiring efforts, housing facilities for workers and more

Apple’s largest supplier Foxconn is reportedly looking to quadruple its workforce at its iPhone factory in India over two years amid supply chain disruption in China.

According to a Reuters report citing government officials, Foxconn’s Zhengzhou (China) plant, which is its largest iPhone factory, is facing disturbances in production and fuelling concerns as China has imposed strict Covid-19 restrictions on global supply chains. The Zhengzhou factory has more than 200,000 workers.

Thus, the manufacturing company aims to move a significant portion of its iPhone production capabilities to its Tamil Nadu-based Indian manufacturing unit. It is looking to hire nearly 53,000 more workers, taking the total headcount to 73,000 in the next two years.

While Foxconn also manufactures other battery-related products for a host of global tech companies, the hiring is to mainly drive iPhone productions in the country. The manufacturer is also talking with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant.

Foxconn and Tamil Nadu government officials also met in October 2022 and discussed issues such as housing facilities for workers, Foxconn’s plans for new ventures and investments and more.

India Gaining Manufacturing Prowess

The trade war between US and China, China’s Covid-Zero policy and India’s rise in manufacturing prowess are making India an eye candy to large-scale manufacturers.

The current update from Foxconn comes shortly after India’s Tamil Nadu has become a hotbed for three of iPhone’s largest suppliers. Currently, the US-based company’s iPhones are produced in India by its contract manufacturers – Foxconn, Wistron and Pegatron.

Indigenously-built iPhones have a nearly 70% stake in the company’s mobile phone sales in the country, the government’s production-linked incentive scheme (PLI) is a contributor here.

Now, Apple is looking to move 5% of the global manufacturing demand to India by the end of 2022, making INR 47,000 Cr worth of indigenous iPhones in FY23.

It is also looking to manufacture other products including Beats and Airpods in India, and Foxconn and Luxshare Precision Industry have already begun planning to make Apple’s acoustic devices in the country.