Apple supplier Foxconn expands iPhone production in India, further diversifying supply chain away from mainland China

apple the supplier Foxconn Technology Group It is said to be adding additional iPhone production capacity to an existing plant in India as part of its drive to diversify its supply chain outside of China.

Taiwan-based Foxconn, the world’s largest electronics maker, will soon start producing phones in a new building at an existing factory near Chennai, the capital of the southern Indian state of Tamil Nadu, local media reported. Economic timesCiting unnamed sources.

The report said that this step comes in the wake of the wave of recruitment that the company has witnessed in the country in recent weeks.

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Foxconn did not immediately respond to a request for comment.

Foxconn shares rose 1.2 percent in Shanghai to 9.5 yuan ($1.40) and 1.5 percent in Taipei to NT$48.70 ($1.60) Friday morning. Its Hong Kong-listed unit, FIH Mobile, fell nearly 1 percent to 1.03 HK dollars (13 US cents).

In recent years, Apple and Foxconn have stepped up efforts to expand their supply chains outside mainland China, particularly in India and Vietnam, spurring domestic production. Supply chains have faced a turbulent two years amid the turmoil caused by the Covid-19 pandemic and geopolitical conflicts.

Foxconn has established more than 40 industrial parks in China, according to its website, more than any other country. But repeated shutdowns to combat the epidemic and other disasters have slowed production. Amid small outbreaks in Shenzhen this year, company complexes in the city have twice been forced to operate under a “closed loop,” a policy in China that requires employees to live and work on company premises for factories to remain open.

The three Foxconn complexes in Zhengzhou, central Henan Province, Pending recruitment of new workers in May after the local government imposed a seven-day lockdown as part of Covid-19 control measures. The total capacity of these facilities makes the city the largest manufacturer of iPhones in the world.

Men ride their motorcycles through a closed Foxconn factory in Chennai, India, which makes iPhones for Apple, on December 21, 2021. Photo: Reuters alt = Men ride their motorcycles next to a closed Foxconn factory in Chennai, India, which makes iPhones for Apple in December 21, 2021. Photo: Reuters >

Two of Zhengzhou’s facilities this past summer were also affected by the catastrophic floods that hit the county, leaving tens of thousands of Foxconn workers on the ground. put on vacation.

Amid these setbacks and increasing trade restrictions from the United States, Foxconn has remained standing Committed to manufacturing in mainland China, an important part of the global electronics supply chain. However, new geopolitical tensions between Taipei and Beijing threaten to create more problems for Taiwanese companies.

After the Speaker of the US House of Representatives Nancy Pelosi visited the island And met the president Tsai Ing-wenBeijing has deployed the People’s Liberation Army around the island and embarked on live-fire exercises that disrupted sea and air traffic. like that Banning the import of some fish and fruits The export of sand, which is used in construction projects, was stopped.

Foxconn has been striving to strengthen its presence in India for years. In 2015, the company said it would build 12 factories in the country, employing nearly one million workers. It currently has one factory near Chennai, sometimes known as the “Detroit of Asia” due to its industrial base.

Late last year, the factory was temporarily closed after workers’ protests over food safety. Production lines reopened in January.

Also last year, Vietnam approved Foxconn’s plan to build a $270 million factory to produce laptops and tablets. The company said it has invested $1.5 billion in the country by the end of 2020 and will invest another $700 million in 2021. The company said last year that it aims to reach $40 billion in revenue in the Southeast Asian country within three to five years.

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