Now, Apple Supplier Foxconn Plans Making AI Servers In India

Aligning with its broader strategy to diversify beyond phones, Apple supplier Foxconn is now reportedly planning to manufacture artificial intelligence servers at its facilities in India.

Citing people close to the matter, ET reported that Foxconn will likely use its existing manufacturing facilities in Tamil Nadu to manufacture AI servers in the country.

“They (Foxconn) can make pretty much anything since they are contract manufacturers, it could be phones, servers, or EV components. They are very nimble that way and currently servers are what they are bullish about,” a source was quoted as saying by the publication.

It is pertinent to note that Foxconn plays a key role in building AI servers for global technology giants such as Amazon, Google, Microsoft and Nvidia.

The development comes at a time when Apple supplier and Foxconn subsidiary Rayprus Technologies is looking to venture into the Indian market with a facility in Bengaluru.

The Taiwan-based company, responsible for assembling approximately 70% of iPhones and holding the title of the world’s largest contract manufacturer, is strategically shifting its production away from China due to disruptions caused by COVID-19 and geopolitical tensions. 

Over the past year, Foxconn has significantly expanded its footprint in India, making substantial investments in manufacturing facilities in the southern part of the country.

Earlier this week, the Ministry of Labour and Employment sought a detailed report from the Tamil Nadu government after an investigative report alleged that Foxconn has discriminatory hiring practices at its iPhone plant in the state’s facility. 

The ministry noted that the allegations, if true, would be a clear violation of the Section 5 of the Equal Remuneration Act, 1976. The provision stipulates no discrimination in recruitment on the basis of gender. 

Last year, Google also revealed its plan to manufacture Pixel smartphones in partnership with Foxconn’s Indian subsidiary and expects these devices to be out in the market in 2024.