Apple supplier Foxconn will soon start readying a new factory within its Foxconn Hai Tech India facility which is close to Chennai, according to a new report. The expansion is part of Apple’s larger goal to diversify its supply chain.
Apple suppliers continue diversifying supply chains
As reported by The Economic Times, Foxconn’s move to further expand in India comes as sales in the region for Apple’s iPhone have started increasing. In addition, localized production will not only benefit Apple’s sales in India but also in other developing Asia-Pacific markets.
Foxconn had carved off a portion of the manufacturing facility under Domestic Tariff Area (DTA) regulations recently, meaning phones made in the de-notified area can be sold in the domestic market.
“They [Foxconn] should be able to have the new building primed for commercial production in about two months, and it means there would be more hiring,” said a source in the know to the publication.
Another source familiar with matters said the current headcount for the Apple phone-making units would total around 8,000 people. “The construction has been going on since the beginning of the year after the food poisoning incident. They are going to expand. They will get additional orders and employ additional workforce,” said the official.
Earlier this year, Apple announced plans to produce iPhone 13 models in India after expanding production capabilities to iPhone 11, iPhone 12, and iPhone SE (2020). The tech giant initially began production in India first with the iPhone SE in 2017.
In April 2022, Foxconn’s Sriperumbudur plant in India began producing the iPhone 13, helping Apple diversify its product supply chain outside of China. Since the tech giant expanded production in India, it shipped a million ‘Made in India’ iPhones in the first quarter of 2022. This helped Apple’s iPhone sales in India to see a 22% year-over-year increase.
In related news, plans to open Apple’s first retail store in India have been pushed back once again due to pandemic-related issues and other supplies getting delayed. The 22,000 sq ft Apple Store is now set to open in 2023 in Mumbai’s Jio World Drive Mall. India’s first Apple Store has been in the works since Apple CEO Tim Cook first announced it in 2020 with an opening date set for September 2021.