In a significant development for Apple’s manufacturing strategy, Taiwanese powerhouse Foxconn has made a substantial investment of $32 million (approximately ₹276 crore) in new machinery aimed at enhancing its production capabilities in India. This investment comes on the heels of challenges faced by Foxconn in China, where the government has reportedly imposed restrictions that affected the shipment of essential equipment and work rotations for its Chinese workforce.
Foxconn’s Latest Investment Announcement
Foxconn’s regulatory filing disclosed that its subsidiary, Foxconn Hon Hai Technology India Mega Development, has acquired machinery specifically for “Apple Operations.” This marks the first major machinery import for iPhone production in over six months, highlighting Foxconn’s commitment to expanding its footprint in India.
- Previous Purchases: Earlier in October 2024, Foxconn imported specialized equipment valued at $31.8 million (around ₹267 crore) to kick off assembly of Apple’s premium iPhone 16 Pro series at its facility in Tamil Nadu.
Workforce Adjustments Amidst Challenges
In a related development, a report from Rest of World in January 2025 indicated that Foxconn has paused new work rotations for its Chinese employees in India, opting to utilize Taiwanese workers instead. This shift is attributed to delays in shipping specialized manufacturing tools from China, which could potentially disrupt production lines at Foxconn’s Tamil Nadu operations, where approximately 50,000 workers are employed.
- Impact of Chinese Regulations: These setbacks are believed to stem from the Chinese government’s apprehensions about Apple’s increasing manufacturing presence in India, which they perceive as a competitive challenge.
Future Production Goals
Foxconn’s recent machinery acquisition is strategically timed as the company gears up to scale its iPhone production in India significantly, aiming for 25-30 million units in 2025, a leap from nearly 12 million units in the previous year. Most of this production will occur at the Sriperumbudur plant near Chennai, while trial runs have also commenced at a new ₹25,000 crore facility in Bengaluru, known as “Project Elephant.” This ambitious project is expected to enable the assembly of 20 million smartphones annually, positioning it as Foxconn’s largest manufacturing site in India and the second-largest globally.
Expanding Apple’s Product Range
In further exciting news, a recent PTI report has revealed that Apple is set to begin exporting AirPods from the Foxconn plant in Hyderabad starting in April. This marks the second product category to be manufactured in India after the iPhone, signaling Apple’s ongoing commitment to expanding its production capabilities in the region.
In conclusion, Foxconn’s strategic investments and adjustments in workforce dynamics underscore a pivotal moment for Apple in India, as the company seeks to bolster its manufacturing presence in response to global market demands and geopolitical challenges.
