Foxconn
Foxconn eyes expansion in India, plans Apple iPad assembly in Tamil Nadu plant 'soon': Report
New Delhi/IBNS: Foxconn has been eyeing major expansion in India as the Taiwanese tech major is planning to assemble Apple's flagship tablet iPad at its Sriperumbudur facility in Tamil Nadu, according to a report by the Economic Times.
Until now, Foxconn and other global contract manufacturers in India have only assembled Apple iPhones.
The Economic Times reported, citing people in the know, that Foxconn is keen on starting iPad assembly in Tamil Nadu facility "soon", with initial discussions with the government already underway.
Apple started iPad production in Vietnam as the American tech giant is diversifying its production away from China, which is part of a broader strategy that included shifting some iPad production to Vietnam last year.
The expansion in India aligns with this move, as per reports.
According to the Economic Times report, iPads in India initially might be assembled in a Semi-Knocked Down (SKD) manner before moving to Completely Knocked Down (CKD) levels, similar to the current process with iPhones, and this will help in scaling up production efficiently.
Foxconn is expected to start assembling iPads in India by the second half of next year, if the plans materialise.
The plan of iPad production in India is seen as feasible because its assembly is similar to that of iPhones, unlike MacBooks, which require more complex facilities, reports said.
This step would also benefit from the production-linked incentives (PLI 2.0 for IT Hardware) in India.
Apart from diversification, Apple is also focusing on the domestic market, with annual iPad shipments expected to reach 49 million this year, a 4.5 percent rise from last year, according to reports.
India’s reduction of the Basic Customs Duty from 20 percent to 15 percent on components is expected to expedite these manufacturing plans, as reported by the Economic Times.
New Taipei City-headquartered Foxconn is also set to start manufacturing Artificial Intelligence (AI) servers and potentially Google’s Pixel smartphones in Tamil Nadu's Sriperumbudur plant.
Additionally, a mega factory outside Karnataka's capital Bengaluru will primarily focus on Apple iPhones, and this move will significantly enhance India’s position in the global supply chain for high-end electronics, benefiting from local incentives and a growing domestic market, according to reports.
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