 "Foxconn eyes Tamil Nadu facility for iPad assembly amid Apple's expansion")
Foxconn is considering expanding its operations in India by assembling Apple’s flagship iPad, according to a report by The Economic Times. Currently, Foxconn’s efforts in India are primarily centred on manufacturing iPhones.
The Taiwanese contract manufacturer is considering starting iPad assembly at its Sriperumbudur facility in Tamil Nadu. Until now, Foxconn and other international contract manufacturers based in India have primarily focused on assembling Apple smartphones.
The report quoted a source as saying, “Foxconn is seriously looking to start assembling Apple iPads out of its Tamil Nadu facility.” The report quoted another source as saying that several discussions with the government have already taken place.
However, it might take a while to begin assembling the Mac range of laptops due to the limited production volume, the report added.
Apple’s initiative to broaden the range of products assembled in India aligns with its strategy to diversify its manufacturing operations away from China. Notably, Apple had already shifted some of its iPad production to Vietnam last year.
Talking about the contract manufacturers, the report quoted an industry source as saying, “It (iPad) is like a bigger iPhone in essence. So, it is something that can be assembled in India without too much trouble as Apple’s contract manufacturers are already well equipped to manage such functions.”
According to Taiwanese research firm Isaiah Research, Chinese electric car manufacturer BYD Auto Co began assembling iPads at its Phu Tho, Vietnam facility in 2022. The firm estimates that Vietnam now contributes to approximately 5-10 per cent of global iPad assembly. Additionally, Foxconn has established production lines in Bac Giang, Vietnam, to commence MacBook assembly, the report said.
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The report quoted Ashweej Aithal, analyst at market research firm Canalys, as saying that Apple was initially reluctant to manufacture iPads and MacBooks in India because of previous issues with government restrictions related to its partnership with BYD. The company’s efforts to collaborate with China’s BYD to produce iPads in India faced obstacles due to government regulations stemming from geopolitical concerns.
“The recent reduction of the Basic Customs Duty (BCD) in the Budget from 20 per cent to 15 per cent on components is also expected to expedite domestic manufacturing plans,” Aithal was quoted by the news report.