Foxconn eyes iPhone enclosure manufacturing in Tamil Nadu

Until now, only Tata Electronics has been producing enclosures in India, while Foxconn has concentrated on assembling iPhones at its Sriperumbudur plant

 

Taiwanese company Foxconn is planning to start manufacturing iPhone enclosures — the external metal or glass frames of iPhones — in Oragadam, Tamil Nadu, at a new unit within the ESR Industrial Park, The Economic Times reported.

So far, only Tata Electronics has been making these enclosures in India. Until now, Foxconn has focused on iPhone assemblies in India, harnessing its Sriperumbudur facility. The proposed enclosures facility will be located separately but nearby Foxconn’s display module assembly plant, which is already nearing completion within the same industrial park.

 

Apple looking to broaden local supply base 

Industry experts believe Foxconn’s move signals Apple’s intent to diversify its suppliers in India, similar to its strategy in China.

Neil Shah, vice-president, Counterpoint Research, was quoted as saying by The Economic Times that it was natural for Foxconn to diversify the production in India. This aligns well with Apple’s broader strategy to derisk and diversify its supply chain, he emphasised.

 

Producing capital equipment  in India

 

Apple is also in talks with Indian companies to make capital equipment and machinery needed for iPhone production. These machines would be supplied to iPhone vendors in India as they expand and launch new models.

 

This step is important because imports of crucial equipment, mainly from China, are currently delayed at ports. By building machines locally, Apple aims to cut business risks. There is strong demand for such equipment, especially with two new factories, one each by Foxconn and Tata Electronics, preparing to begin iPhone manufacturing.

 

Foxconn ships 97 per cent of iPhones from India to US 

From March to May, nearly 97 per cent of iPhones exported by Foxconn from India went to the United States, based on customs data reviewed by Reuters. These shipments were worth $3.2 billion, a large rise from the 50 per cent monthly average seen through 2024.

 

This change shows Apple’s effort to avoid high US tariffs on Chinese goods. Earlier, Indian-made iPhones were shipped to markets like the Netherlands, the Czech Republic, and the UK. Now, most are headed directly to the US.

The shift comes as Washington plans to impose even steeper duties on Chinese imports.