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Foxconn is eyeing doubling iPhone production to 25-30 Mn units from last year’s 12-13 Mn at its India facilities in the ongoing calendar year
The manufacturer is betting on its Bengaluru unit to add to the production push
Foxconn’s bid to deepen its India presence is in-line with Apple’s plans to produce its products in India, as the Tim Cook-led company looks to diversify its supply chain and reduce dependence on China
Adding another chapter to Apple’s India manufacturing push, its contract manufacturer Foxconn is reportedly eyeing doubling iPhone production to 25-30 Mn units at its India facilities in the ongoing calendar year.
As per a report by ET, the manufacturer has been experimenting with restricted testing operations at its new Bengaluru facility over the past 3-4 months. The tests are being conducted to check if the plant can produce Apple’s flagship product at scale without flouting quality standards, a source told the publication.
“Last year, the company assembled about 12 Mn iPhones in India… But with their Bengaluru facility also coming up quickly, they have set their ambitions a lot higher, in line with Apple’s push to deepen their presence in India,” the source added.
The Taiwanese electronics manufacturer acquired a 300-acre plot near Bengaluru airport in 2023. The company has committed INR 25,000 Cr towards the establishment of the project. Once completed, the unit will have the capacity to assemble 20 Mn smartphones annually, becoming Foxconn’s largest unit in India and the second largest in the world.
Earlier this month, Karnataka CM Siddaramaiah said that the state government will grant Foxconn an incentive of INR 6,970 Cr for its Bengaluru facility under the state’s Electronics System Design and Manufacturing (ESDM) policy.
The new facility is projected to create 1 Lakh direct and indirect jobs over the next 10 years, as per government estimates.
It is pertinent to mention that the Taiwanese company has been on an expansion spree in the country over the past few months. It was reported last week that the company and its joint venture partner HCL are in talks with Larsen & Toubro (L&T) and Taiwanese construction engineering company CTCI to set up an outsourced semiconductor assembly and testing (OSAT) facility in the state of Uttar Pradesh.
Besides, it is also said to be in discussions with the government of Tamil Nadu to set up a battery manufacturing unit on about 200 acres of land in the state.
Apple’s India Manufacturing Push
Foxconn’s bid to deepen its India presence is in-line with Apple’s plans to produce its products in India, as the Tim Cook-led company looks to diversify its supply chain and reduce dependence on China. The company is said to be looking to assemble 32% of its global iPhone production volume and 26% of its value in India by 2026-27.
As per reports, 12-14% of global iPhone production volume moved to India, contributing over 10% in value in FY24. The tech major’s iPhone production in India reached a value of $14 Bn during the fiscal year.
The US-based company is also in talks with Indian companies, like Wipro Enterprises, Bharat Forge, among others, as it looks to strengthen its supplier network and produce components of its products in India.
Besides establishing itself as a manufacturing hub, India has emerged as a key market for Apple. The company has been seeing a significant uptick in sales in the country over the past few quarters. Apple CEO Cook said that the company posted record quarterly sales in India in the December quarter of 2024.
“I am particularly keen on India, India set a December quarter record during the quarter and we’re opening four new stores there,” he said in the company’s post-earnings call.
As a result, Apple is also looking to open 4 more flagship retail stores in the country.
