Apple iPhone Maker Foxconn May Set Up Two More Facilities In Chennai, Research Centre Planned In Bengaluru

Foxconn is planning to expand its manufacturing facility in India by constructing two more facilities near Chennai, say news reports.

The Apple iPhone-maker is also said to be establishing a research and development centre in Bengaluru’s Whitefield, suggesting it is expanding its capacity rapidly in India.

This came amid Apple CEO Tim Cook’s visit to India to launch its first store in the country, signalling the American giant’s growing ambitions in the world’s second-largest smartphone market.

In March, Foxconn chairman Young Liu marked his second visit to India in less than a year by committing to further investments. India had become an increasingly important location for Foxconn, one of the largest suppliers of Apple products worldwide.

"They (Foxconn) broadly indicated that there would be at least two more buildings that they would like to construct to manufacture iPhones. Detailed plans will be submitted later when they seek approvals and clearance,", Economic Times cites their sources.

“The two new facilities that Foxconn is looking to build will be in addition to two other buildings that they have already constructed at the Chennai site.”

Foxconn also plans to construct an iPhone manufacturing and assembly unit near Bengaluru International Airport by May.

News reports say that the proposed research and development centre in Whitefield may also be one of the company's investments in the southern state.

Foxconn is ramping up its capacity as exports of Apple products from India are soaring.

Analysts say that Apple exports increased significantly in March, with 2.5 million iPhones exported, and 1.3 million going to the US. This is driving Foxconn's aggressive expansion plans.

Apple has reportedly had a significant increase in iPhone exports from India, surpassing $5 billion in FY23, a four-fold increase from the previous year.

This has been largely attributed to Apple's support for the growth of India's manufacturing industry, with local suppliers increasing their production of premium Apple devices.

India's total smartphone exports have also surpassed $10 billion with Apple's assistance. This marks the first time overall smartphone exports in India have reached this milestone in a single fiscal year.

Apple's goal of expanding their supply chains beyond China includes having their main contract manufacturers, Foxconn, Wistron, and Pegatron, operational in India.

Tamil Nadu is quickly growing as an iPhone manufacturing hub with two of their main contractors, Foxconn and Pegatron, already operational there.

In addition, Apple is outsourcing the production of iPhone enclosures to Tata Electronics, situated at Hosur, on the Tamil Nadu-Karnataka border.