Apple supplier Foxconn expands India iPhone production, further diversifying supply chain away from mainland China
- Foxconn is adding iPhone production capacity to an existing factory near Chennai, according to a local report
- The electronics manufacturer has been seeking to diversify its supply chain away from mainland China amid Covid-19 disruptions and geopolitical tensions
Taiwan-based Foxconn, the world’s biggest electronics contract manufacturer, will soon start phone production in a new building at an existing factory near Chennai, capital of the southern Indian state of Tamil Nadu, according to local media The Economic Times, citing unnamed sources.
The move follows the company’s hiring spree in the country in recent weeks, the report said.
Foxconn did not immediately respond to a request for comment.
Foxconn shares rose 1.2 per cent in Shanghai to 9.5 yuan (US$1.40) and 1.5 per cent in Taipei to TW$48.70 (US$1.60) on Friday morning. Its Hong Kong-listed unit, FIH Mobile, dropped nearly 1 per cent to HK$1.03 (13 US cents).
In recent years, Apple and Foxconn have stepped up efforts to expand their supply chains outside mainland China, especially in India and Vietnam, which incentivise local production. Supply chains have faced a turbulent couple years amid disruptions from the Covid-19 pandemic and geopolitical conflicts.