[News] Foxconn Mulls to Invest USD 1 Billion in India to Assemble Smartphone Display Modules for Apple

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Earlier in August, Foxconn announced the plan to expand its overseas investments, with the total amounting to roughly USD 840 million. Now the expansion plan seems to be more materialized, as the Taiwanese tech giant is reportedly evaluating an investment of around USD 1 billion to set up a smartphone display module assembly unit in Tamil Nadu, India, according to a report by The Economic Times, cited by Taiwanese media the Economic Daily News.

The blueprint, if it comes to fruition, would mark Foxconn’s first panel module assembly plant in India, which targets to supply Apple for its iPhone production, The Economic Times notes. Sources cited by the report note that Foxconn aims to have the facility “up and running as soon as possible,” though there has yet to be any specific timeline.

India has emerged as a crucial destination for tech giants seeking to diversify their supply chains away from China amid rising geopolitical tensions with the West. A previous report by BBC reveals that Google is set to manufacture Pixel smartphones at an existing Foxconn facility in India, which is also located in Tamil Nadu.

The new panel assembly business, therefore, is seen as a strategic move to streamline related processes for Foxconn.

In terms of the scale of the assembly unit, The Economic Times suggests that Foxconn has secured approximately 500,000 square feet at the ESR Oragadam Industrial & Logistics Park, adjacent to its smartphone assembly facility near Chennai in southern India.

It is worth noting that according to The Economic Times, Foxconn’s facility is expected to allow other contract manufacturers, such as Pegatron or Tata Electronics, to use the components locally produced, instead of importing pre-assembled modules from China.

Foxconn did not respond to The Economic Times’ request for comment on the 24^th.

An industry consultant cited by the report noted that having a manufacturer assemble panel modules in India matters a lot for the country, as India currently relies heavily on imports for its panel demand, which would further increase the total cost and supply chain complexity.

According to the report, around 60% to 65% of panel module imports come from China, followed by South Korea, which accounts for 20% to 25% of the imports.

In India, the largest smartphone panel module assemblers are TCL China Star Optoelectronics Technology and India’s TXD. CSOT has been assembling panel modules for Samsung and Xiaomi, while TXD supplies Vivo and Oppo, the report says.

Read more

• [News] Apple Reportedly Doubles iPhone Production in India, while Foxconn Holds 67% Share
• [News] Foxconn Expands Investment in the U.S., Mexico, India, and Europe, Approaching USD 840 Million

(Photo credit: Foxconn)