SUMMARY
- Foxconn plans a $1B display module assembly plant in Tamil Nadu to supply Apple.
- The facility will help localize display part sourcing for Apple, Tata Electronics, and Pegatron.
- Foxconn’s India expansion includes phone assembly, batteries, semiconductors, and electric vehicle markets.
Foxconn, a Taiwanese electronics firm, is considering spending about $1 billion to establish a smartphone display module assembly facility in Tamil Nadu, as reported by ET.
This would be Foxconn’s first plant of its kind in India, with the main goal being to supply Apple with parts for its iPhone manufacturing. The plant is anticipated to be designed in a way that would enable other producers, like Tata Electronics or Pegatron, to source parts locally as an alternative to bringing in display modules from China.
The firm has purchased about 500,000 square feet at the ESR Oragadam Industrial & Logistics Park, which is close to its smartphone assembly factory in the Chennai area.
According to Tarun Pathak, research director at Counterpoint, display assembly may add an extra 2-3% to local value, whereas phone assembly adds roughly 5%. How much value addition is done in India will be important.
The strategic decision by Foxconn to expand into the assembly of Google Pixel phones in India is perceived as an attempt to optimize the production process. The Taiwanese corporation is expanding its smartphone business in India at a quick pace and is focusing on markets including batteries, ICT, semiconductors, and electric cars.
