Skull and Bones
ELITE MEMBER
- Joined
- Jan 29, 2011
- Messages
- 18,601
- Reaction score
- -4
- Country
- Location
APPLE supplier Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, two government sources said, pointing to a production adjustment as it faces disruptions in China.
Foxconn has grabbed headlines in recent weeks, with tight virus restrictions at its Zhengzhou plant disrupting production and fuelling concerns over the impact of China’s virus policy on global supply chains. The Zhengzhou plant employs 200,000 workers, and is the world’s largest iPhone factory.
The disruptions prompted Apple to lower its forecast for shipments of the premium iPhone 14 models this week, dampening its sales outlook for the busy year-end holiday season.
The Taiwan-based group plans to boost the workforce at its Tamil Nadu plant in southern India to 70,000, by adding 53,000 more workers over the next two years, said the sources, who declined to be named as the discussions are private.
While the size of the Tamil Nadu plant is dwarfed by the Zhengzhou plant, it is central to Apple’s efforts to shift production away from China.
Foxconn, formally called Hon Hai Precision Industry, opened the India plant in 2019, and has been ramping up production. The group started producing iPhone 14 models this year.
Its interest in expanding the India facility is known, but the scale of the planned expansion and timelines have not been previously reported on.
Both Foxconn and Apple declined to comment.
Foxconn’s chairman Liu Young-way said Thursday (Nov 10) on an earnings call that the company would adjust its production capacity and output to mitigate the impact of any further potential disruptions in supplies for the Christmas and Chinese New Year holidays.
The company has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to the disruptions in China, said the first government source.
Beyond iPhones, the plant also manufactures products for other global tech firms. However, the new hiring push is mainly driven by its need to meet growing iPhone demand, the person added.
A source in Taiwan said Foxconn is expanding its operations in India to increase its capacity for basic models, and to meet Indian demand.
“We are gradually increasing our production scale there,” the person said, declining to give details on the group’s hiring plans in India.
The second government source in India, a senior official in the Tamil Nadu administration, said the state government was working with Foxconn in “finalising” the expansion.
On Oct 27, the state’s investment promotion arm tweeted that top government officials had travelled to Taiwan and met Liu. They had “elaborately discussed Foxconn’s plans for new ventures and investments”, and offered the government’s support.
The state’s discussions with the suppliers looked to address issues such as housing facilities for workers, the first government official said.
Last year, Foxconn’s Tamil Nadu plant was at the centre of a mass food-poisoning incident which sparked employee protests, and threw light on the living conditions of workers in hostels near the factory.
Officials at Tamil Nadu, a hub of electronic and automotive manufacturing, were also pushing Apple suppliers to branch out into manufacturing components for iPhones, beyond just assembly, the two government sources said.
Currently, iPhones are assembled in India by at least three of Apple’s global suppliers: Foxconn and Pegatron in Tamil Nadu, and Wistron in the nearby Karnataka state.
JP Morgan analysts estimated in September that Apple may make one out of four iPhones in India by 2025. They also said that 25 per cent of all Apple products – including Mac, iPad, Apple Watch and AirPods – will be manufactured outside China by 2025, from 5 per cent currently. REUTERS
Foxconn has grabbed headlines in recent weeks, with tight virus restrictions at its Zhengzhou plant disrupting production and fuelling concerns over the impact of China’s virus policy on global supply chains. The Zhengzhou plant employs 200,000 workers, and is the world’s largest iPhone factory.
The disruptions prompted Apple to lower its forecast for shipments of the premium iPhone 14 models this week, dampening its sales outlook for the busy year-end holiday season.
The Taiwan-based group plans to boost the workforce at its Tamil Nadu plant in southern India to 70,000, by adding 53,000 more workers over the next two years, said the sources, who declined to be named as the discussions are private.
While the size of the Tamil Nadu plant is dwarfed by the Zhengzhou plant, it is central to Apple’s efforts to shift production away from China.
Foxconn, formally called Hon Hai Precision Industry, opened the India plant in 2019, and has been ramping up production. The group started producing iPhone 14 models this year.
Its interest in expanding the India facility is known, but the scale of the planned expansion and timelines have not been previously reported on.
Both Foxconn and Apple declined to comment.
Foxconn’s chairman Liu Young-way said Thursday (Nov 10) on an earnings call that the company would adjust its production capacity and output to mitigate the impact of any further potential disruptions in supplies for the Christmas and Chinese New Year holidays.
The company has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to the disruptions in China, said the first government source.
Beyond iPhones, the plant also manufactures products for other global tech firms. However, the new hiring push is mainly driven by its need to meet growing iPhone demand, the person added.
A source in Taiwan said Foxconn is expanding its operations in India to increase its capacity for basic models, and to meet Indian demand.
“We are gradually increasing our production scale there,” the person said, declining to give details on the group’s hiring plans in India.
The second government source in India, a senior official in the Tamil Nadu administration, said the state government was working with Foxconn in “finalising” the expansion.
On Oct 27, the state’s investment promotion arm tweeted that top government officials had travelled to Taiwan and met Liu. They had “elaborately discussed Foxconn’s plans for new ventures and investments”, and offered the government’s support.
The state’s discussions with the suppliers looked to address issues such as housing facilities for workers, the first government official said.
Last year, Foxconn’s Tamil Nadu plant was at the centre of a mass food-poisoning incident which sparked employee protests, and threw light on the living conditions of workers in hostels near the factory.
Officials at Tamil Nadu, a hub of electronic and automotive manufacturing, were also pushing Apple suppliers to branch out into manufacturing components for iPhones, beyond just assembly, the two government sources said.
Currently, iPhones are assembled in India by at least three of Apple’s global suppliers: Foxconn and Pegatron in Tamil Nadu, and Wistron in the nearby Karnataka state.
JP Morgan analysts estimated in September that Apple may make one out of four iPhones in India by 2025. They also said that 25 per cent of all Apple products – including Mac, iPad, Apple Watch and AirPods – will be manufactured outside China by 2025, from 5 per cent currently. REUTERS
