Shortly after Apple’s main iPhone supplier Foxconn revealed that is concerned about how the ongoing COVID-19 outbreak in China will impact its revenue, it announced that it plans to quadruple its workforce in India. While this will not alleviate the current situation, it is a step in the right direction for Apple.
iPhone supplier Foxconn is trying to reduce its dependence on China
Apple has been working toward reducing its dependence on China for a while now. Over the years, the tech giant has asked suppliers to move some of its production away from China to India, Vietnam, etc. However, it is estimated that it would take Apple eight years to move just 10% of its production capacity outside of China.
Given how much trouble Apple is in right now, just goes to show that reducing its dependence on China is incredibly important since almost 98% of its iPhones have been assembled in the region. Out of the 98% of iPhones manufactured in China, Foxconn’s Zhengzhou plan is responsible for 95% of them.
A few weeks ago, Apple’s main iPhone assembler, Foxconn, was forced to work under closed-loop production protocols due to a COVID-19 outbreak in Zhengzhou. Initially, it was expected that production restrictions would be eased soon, however, Foxconn’s plant was placed under a week-long lockdown shortly after the outbreak was reported. The situation looked so bleak at one point that Apple announced plans to scale back production of the iPhone 14 lineup at Foxconn’s facility in the region.
This brings us to the latest development in the situation. According to a new report from Reuters, the manufacturer plans to quadruple the workforce at its iPhone factory in India over the next two years.
Taiwan-based Foxconn now plans to boost the workforce at its plant in southern India to 70,000 by adding 53,000 more workers over the next two years, said the sources, who declined to be named as the discussions are private.
While the size of the plant in India’s southern state of Tamil Nadu is dwarfed by Foxconn’s Zhengzhou plant, which employs 200,000 workers, it is central to Apple’s efforts to shift production away from China.
Foxconn has been assembling the iPhone 14 and iPhone 14 Plus models in India since they were launched. Earlier in August, it was also reported that the supplier intends to open an iPhone production plant within its Foxconn Hai Tech India facility which is close to Chennai.