Foxconn’s Proposed $1 Billion Plant In Tamil Nadu To Curb India’s Dependence On Chinese Smartphone Display Modules

Foxconn is reportedly considering a potential investment of around $1 billion to set up a smartphone display module assembly plant in Tamil Nadu.

The facility will be the first of its kind for Foxconn in India, with a primary focus on serving Apple’s production needs for the iPhones.`

However, Foxconn’s strategy includes allowing other contract manufacturers, like Pegatron and Tata Electronics, to use components produced at this unit instead of relying on imports from China.

Although no specific timeline has been set, the company aims to launch operations at the facility "as soon as possible," according to sources cited by Economic Times.

“Foxconn has picked up about 500,000 square feet at a plug and play facility at the ESR Oragadam Industrial & Logistics Park, which is right next to their smartphone assembly unit near Chennai,” one of the sources told ET.

With Foxconn also assembling Google Pixel phones in India, this new unit is viewed as a strategic move to further streamline the process.

Foxconn is aggressively expanding its smartphone manufacturing footprint in India and exploring other sectors such as ICT, electric vehicles, batteries, and semiconductors.

Local assembling of display modules in India gains significance as the country currently relies heavily on imports for these components, which increases input costs and complicates supply chains.

Around 60-65 per cent of display modules are imported from China, with South Korea being the second-largest supplier at 20-25 per cent.

The local assembly will shorten supply chain cycles and cut costs.

Leading companies in the global display module industry are Samsung Display, BOE Technology, LG Display, Tianma Microelectronics, AU Optronics, and Japan Display Inc.

At present, the largest display module assemblers in India are Chinese companies TCL CSOT in Tirupati, Andhra Pradesh, and TXD (India) Technology in Bawal, Haryana. These firms assemble modules for brands such as Samsung, Xiaomi, Vivo, and Oppo.

Foxconn’s move to deepen its supply chain in India complements Apple’s strategy to reduce its dependency on China, as the tech giant shifts more of its focus toward India.

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