Key Developments
1. Foxconn plans to double its iPhone manufacturing capacity in India, targeting 25-30 million units in 2025 compared to 12-13 million produced last year
2. The company's new Bengaluru facility will play a pivotal role in achieving this ambitious production increase
3. This expansion aligns strategically with Apple's broader initiative to shift more manufacturing to India as part of its supply chain diversification efforts away from China
4. The move represents a significant advancement in India's growing importance as a global electronics manufacturing hub

Apple’s Contract Manufacturer Ramps Up Indian Operations with New Bengaluru Facility

Foxconn, Apple’s primary contract manufacturer, is planning to significantly scale up its iPhone production capabilities in India during the 2025 calendar year. According to industry sources, the Taiwanese electronics giant aims to more than double its current output to approximately 25-30 million iPhone units from its Indian manufacturing facilities.

Bengaluru Facility Undergoes Rigorous Testing Phase

Over the past three to four months, Foxconn has been conducting limited testing operations at its newly established Bengaluru facility. These crucial tests are designed to evaluate whether the plant can maintain Apple’s stringent quality standards while manufacturing the flagship iPhone at scale.

“Foxconn assembled approximately 12 million iPhones in India last year,” revealed an industry insider familiar with the company’s operations. “With the rapid development of their Bengaluru facility, they have significantly elevated their production targets, aligning with Apple’s strategic push to strengthen their presence in the Indian market.”

Substantial Investment in New Manufacturing Hub

In a major move demonstrating its commitment to Indian manufacturing, Foxconn acquired a substantial 300-acre plot near Bengaluru airport in 2023. The company has pledged an investment of INR 25,000 crore toward the establishment of this state-of-the-art production facility.

Upon completion, this manufacturing hub will have the capacity to assemble an impressive 20 million smartphones annually. This development will position it as Foxconn’s largest production unit in India and secure its place as the company’s second-largest manufacturing facility worldwide.

Government Support Through Financial Incentives

Earlier this month, Karnataka Chief Minister Siddaramaiah announced that the state government will provide Foxconn with a substantial incentive package amounting to INR 6,970 crore for its Bengaluru facility. This financial support comes under Karnataka’s Electronics System Design and Manufacturing (ESDM) policy, highlighting the government’s commitment to fostering electronics manufacturing in the region.

Job Creation and Economic Impact

The establishment of the new facility is expected to generate significant employment opportunities in the region. Government estimates project the creation of 100,000 direct and indirect jobs over the next decade, substantially contributing to the local economy and skill development ecosystem.

Foxconn’s Broader Expansion Plans in India

It is worth noting that the Taiwanese manufacturing giant has been aggressively expanding its footprint across India in recent months. Reports from last week indicate that Foxconn, in partnership with HCL, is currently in discussions with Larsen & Toubro (L&T) and Taiwanese construction engineering firm CTCI regarding the establishment of an outsourced semiconductor assembly and testing (OSAT) facility in Uttar Pradesh.

Additionally, the company is reportedly engaged in talks with the Tamil Nadu government to set up a battery manufacturing unit on approximately 200 acres of land within the state, further diversifying its manufacturing portfolio in India.

This comprehensive expansion strategy underscores Foxconn’s long-term commitment to the Indian market and aligns with the country’s push to become a global manufacturing hub for electronics and technology products.

Apple’s India Manufacturing Push

Foxconn’s strategic expansion of its Indian operations aligns perfectly with Apple’s broader vision to enhance its manufacturing presence in India, as the Tim Cook-led technology giant works to diversify its global supply chain and reduce its historical dependence on China. Industry projections indicate that Apple aims to assemble approximately 32% of its worldwide iPhone production volume and 26% of its value in India by the 2026-27 fiscal year.

Recent reports highlight that during FY24, between 12-14% of Apple’s global iPhone production volume shifted to India, contributing over 10% in value. The tech behemoth’s iPhone production in India reached an impressive valuation of $14 billion during this fiscal period.

The US-based technology leader is actively engaging with various Indian companies, including prominent names such as Wipro Enterprises and Bharat Forge, among others. These discussions form part of Apple’s comprehensive strategy to strengthen its supplier network and localize the production of various iPhone components within India.

Beyond establishing India as a manufacturing powerhouse, the country has emerged as a crucial market for Apple’s products. The company has witnessed remarkable growth in sales across the Indian market over recent quarters. During Apple’s post-earnings call, CEO Tim Cook emphasized this point, stating that the company achieved record quarterly sales in India during the December quarter of 2024.

“I am particularly keen on India, India set a December quarter record during the quarter and we’re opening four new stores there,” Cook remarked during the company’s financial briefing.

In response to this exceptional market performance, Apple is actively planning to establish four additional flagship retail stores across the country, further cementing its retail presence in this rapidly growing market.

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