Foxconn India to produce 30M iPhones/year as Apple expands manufacturing
What's the story
Foxconn, a key supplier to Apple, has set an ambitious target for this year.
The Taiwanese giant aims to manufacture between 25-30 million iPhones at its Indian facilities.
The target is more than double the number of iPhones assembled in India last year (around 12 million units).
The increase comes primarily due to Apple's strategy of expanding its manufacturing footprint in India and diversifying its supply chain.
Expansion plans
Bengaluru facility to play a crucial role in iPhone production
Foxconn has been running limited trials at its Bengaluru campus for the last few months.
These initial runs are aimed at testing the plant's ability to manufacture phones at scale while meeting Apple's high-quality standards.
Once these trials are successful, Foxconn will enter the 'revenue build' phase where phones will be readied for shipment, according to The Economic Times.
Shipments from this facility are critical for Foxconn's ambitious target.
Production strategy
Production focus remains on iPhones
Lori Chang, a senior analyst at Taiwan-based Isaiah Research, has said Foxconn is likely to ramp up its production in India this year.
She said the main focus for Foxconn will continue to be iPhone production.
The share of iPhones produced in India is expected to increase from last year's target of 12-16% to an estimated 21-25% this year.
This matches Apple's expectations as it continues its expansion efforts in the country.
Growth initiatives
Expanding operations in India
Foxconn has been ramping up investments in mobile assembly in India, a trend that will continue as Apple doubles down on the country.
The company is building a 300-acre campus in Bengaluru, its second-largest facility after China.
It also opened a new unit in Hyderabad for AirPods production and runs large-scale operations at its Sriperumbudur campus near Chennai, where most iPhone assembly happens.
Future prospects
Foxconn's future plans and semiconductor investment
Foxconn Chairman Young Liu has said the company wants to diversify beyond smartphones in India.
The company plans to explore sectors like information and communication technology (ICT), electric vehicles (EVs), energy, and digital health.
As part of this vision, Foxconn has announced a $37.2 million investment for a chip packaging and testing facility in India with HCL Group.
This comes after its joint semiconductor venture with Vedanta Group dissolved last year.