Expanding Beyond iPhones: Foxconn To Start Manufacturing AI Servers In India

Taiwanese contract manufacturing giant Foxconn is reportedly set to start producing high-performance AI servers at its Indian facilities.

This move will indicate a significant expansion for Foxconn, which is best known in India as the lead assembler of Apple's iPhone.

The company, which plays a crucial role in building AI servers for global tech giants such as Amazon, Google, Microsoft, and Nvidia, is expected to utilise its existing manufacturing facilities in Tamil Nadu for this new venture.

“They (Foxconn) can make pretty much anything since they are contract manufacturers, it could be phones, servers, or EV components. They are very nimble that way and currently servers are what they are bullish about,” a person in the know was quoted as saying by The Economic Times.

Industry experts see the manufacturing of AI servers in India as a natural progression for Foxconn, which aims to increase its share in the global AI server market from 30 per cent last year to 40 per cent this year.

AI servers are poised to become "Foxconn's next-trillion revenue product," according to chairman Young Liu, who spoke at the company’s annual shareholders’ meeting in Taipei last month.

Foxconn is also benefiting from India’s production-linked incentive (PLI) scheme for IT hardware, further solidifying its investment in the country.

Recently, it was reported that Google is in advanced talks with Foxconn to locally manufacture Pixel smartphones in Tamil Nadu.

In February, Foxconn announced through an exchange filing that its Indian subsidiary would invest Rs 1,200 crore to build a new factory on company-owned land.

Additionally, Foxconn is constructing a mega factory outside Bengaluru, primarily for iPhone production.

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