Foxconn Considers Major Expansion in India to Diversify Production Outside of China

According to a report from The Wall Street Journal, Foxconn is considering a significant expansion in India, including opening new factories and increasing iPhone assembly numbers, to further diversify production outside mainland China. Insiders say Foxconn plans to increase its annual production capacity for assembling iPhones in India to 20 million units by 2024, doubling its workforce to 100,000 people.

This expansion could present an opportunity to increase their presence in India, especially in the southern state of Tamil Nadu and Karnataka, where Foxconn plans to establish new production factories for assembling iPhones and other products. In addition, Foxconn is considering building new factories in Hyderabad to establish carbon silicon manufacturing and packaging plants for semiconductor operations in India.

The Indian government has set a target to increase the proportion of iPhones assembled in India from the current 5-7% to 25%, and with Foxconn's expansion plans, electronic component distributors could potentially benefit from increased demand for their products in India. Foxconn's Chairman, Liu Yangwei, also stated that he is seeking to partner with India in new areas such as semiconductor research and electric vehicles.

As the Indian government offers billions of dollars in incentives to attract global manufacturers to set up factories in India, this could create new opportunities for electronic component distributors to expand their business in the region. After the COVID-19 pandemic disrupted Apple's suppliers' production in mainland China, the company has been urging suppliers to diversify their production bases outside of China, making India an attractive option for expanding production capacity.