Foxlink Bounces Back with New Plant in Tamil Nadu Post AP Fire

Taiwan’s Foxlink, a key supplier to Apple Inc., is gearing up for a comeback with a new plant in Oragadam, near Chennai, following the devastating fire at its Tirupati facility in Andhra Pradesh last year.

The new plant is part of a strategic expansion plan to bolster its manufacturing capabilities in India, The Economic Times reported.

Foxlink, an affiliate of Foxconn, specializes in manufacturing iPhone charging cables. “They are setting up a plant in Oragadam, which is also where Foxconn’s plant is, but not in the same premises,” revealed one of the insiders. “They are looking to begin production soon and are considering expanding their portfolio of products.”

The company’s website, under the ‘Foxconn India presence’ section, continues to list Tirupati as its operational location and Chennai as part of its expansion blueprint. Additionally, the site mentions that Foxlink has acquired land in Noida.

Neither Apple nor Foxlink responded to email queries regarding these developments.

The fire incident at the Tirupati plant in February 2023 caused significant damage, leading to a partial building collapse. Fortunately, no casualties were reported. Reports indicated that the plant housed 10 assembly lines across two facilities, with four lines completely destroyed by the fire.

“Foxlink was finding it hard to sustain operations at the Tirupati facility due to manpower issues and the fire damage, so they decided to establish another facility,” stated a second source.

Founded in 1986, Foxlink designs manufactures, and sells connectors, cable assemblies, power management devices, and battery packs on an OEM/ODM basis to leading manufacturers of communications devices, computers, and consumer electronics.

In 2023, Foxlink reported revenue of $90.9 billion NTD ($2.8 billion) and employed 29,316 people globally across the US, India, Myanmar, and Taiwan, according to its website.

“From 2020, Foxlink has focused on providing electronics manufacturing services with design and technology support to the entire spectrum of the Indian electronics industry, including consumer electronics, automotive, and defense sectors,” the company stated.

Foxlink is particularly focusing on the India Emerging Market with design and technology support to ‘Make in India.'”

Interestingly, Foxlink’s Taiwan website also lists camera modules among its product offerings. The camera module is a critical component for mobile phones and represents one of the significant challenges for Apple in India. ET reported in April that Apple, lacking Indian suppliers for the camera module in iPhones, was in discussions with the Murugappa Group and Titan Company.

With the support of the production-linked incentive (PLI) scheme, Apple is aggressively pushing for manufacturing in India to diversify its supply chain away from China.

The company’s major Electronics Manufacturing Services (EMS) firms in India include Foxconn, Pegatron, and Wistron (recently acquired by Tata Electronics). Pegatron is also expected to be taken over by Tata Electronics.

On May 13, ET reported that the export of made-in-India iPhones doubled in April, reaching $1.1 billion (Rs 9,000 crore) from $580 million the previous year.

Experts anticipate exports to surpass the Rs 1 lakh crore milestone in FY25, solidifying India as Apple’s second-largest manufacturing hub outside China.

In FY24, Apple’s total production in India surged to $14 billion (Rs 1.2 lakh crore), with exports exceeding $10 billion (Rs 85,000 crore), marking the highest figures ever achieved by any company in India within a single financial year.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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