Foxconn looking to Expand Factory in India, Help Diversify Apple Supply Chain

FoxconnIndiaExpansionAug2022Featured

Reports indicate that Apple supplier Foxconn may be looking to expand in India through the opening of a new production facility based within an already existing factory. The goal of this expansion is to further increase production of the iPhone.

Reported by The Economic Times, Foxconn is looking to begin production in the new building in just a few months after a recent hiring boom occurring in India during within recent weeks. The new building will be a part of Foxconn’s already existing factory near Chennai, India.

Foxconn Looking to Expand Factory in India

With Foxconn having involvement in production of both the iPhone 13 and iPhone 14 this year, the expansion of Foxconn in India is but one way Apple plans to further diversify its supply chain. Foxconn is looking to continue investing in India, as the local government is looking to strengthen its local market.

For both Apple and Foxconn, it seems to be a rather tumultuous year in terms of production. Both Apple and Foxconn have been moving more toward India as the COVID-19 restrictions in China have increased pressure to do so.

For example, the end of June saw Foxconn’s Zhengzhou factory offering a $1,345 incentive for new employees who stay with the company for four months. This hiring bonus came to employees after Foxconn’s Zhengzhou factory attempted a hiring blitz in May that was quickly thwarted by COVID-19 related lockdowns.

As recently as the end of July, Foxconn’s Zhengzhou facility was ordered to work in a “closed loop” system due to COVID-19. Within this type of system, employees assigned to the closed loop conditions live in dorms on the company’s facilities. During this time the workers were not to engage in physical contact from anyone outside the facility, including members of their family.

Waiting for September

Despite this, analyst Ming-Chi Kuo argues that supply issues will likely have a limited impact on iPhone 14 production. While there were rumors that Apple had to cut its iPhone 14 supply order by 10% due to semiconductor supply issues, Kuo argues that supply chain surveys disagree. At the same time, there may no supply issues potentially due to Apple making the iPhone 14 and iPhone 14 pro models significantly different.

With the iPhone 14 keynote likely to be Sept. 13, it will be fascinating to see some rumors gain credence and some rumors fall to the wind. While there may have been supply issues this past year, it seems Cupertino has done its best to strategize. September will likely show if the work has paid off.

Are you looking forward to the iPhone 14? What about iOS 16? Let us know in the comments.

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