Foxconn to scale up iPhone prod; TN eyes big prize

CHENNAI: Tamil Nadu, accounting for 70–80% of all iPhones manufactured in India, is in the race to attract another big ticket investment from Apple via Foxconn.

As per a media report, Foxconn, Apple's primary contract manufacturer, is aiming to expand its role in Apple’s India manufacturing ecosystem. The company is looking to assemble more iPhone models in India and also scale up component manufacturing, including mechanical parts and chips.

This move aligns with Apple’s strategy to diversify production away from China and increase Indian output, especially with geopolitical tensions and supply chain risks.

Apple's India production has already been growing rapidly (India contributed 14% of global iPhone production in FY24), and the anticipated development is expected to boost it further. This comes on the back of Foxconn apparent talks to set up new facilities, possibly in Karnataka and Tamil Nadu, where it already operates.

The company is also working to strengthen local sourcing, onboarding more domestic suppliers to meet Apple's localisation targets.

TN is already gaining a reputation as the country’s primary iPhone production centre, thanks to the presence of Foxconn, Pegatron, and Tata Electronics.

The state is seen as a leader in electronics and hardware, accounting for 20% of India’s electronics output.