Apple’s primary contractor is progressing with a $1.5 billion component manufacturing facility near Chennai, thereby further enhancing the iPhone manufacturer’s supply chain in India, despite Donald Trump’s insistence on returning production to the United States.
Foxconn, which has been assembling Apple’s products for many years, is poised to establish a display module plant in the southern Indian state of Tamil Nadu, as reported by two government officials to the Financial Times. This facility will assist the Taiwanese firm in supplying Apple, its principal client.
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This initiative signifies the US technology giant’s latest shift towards India and away from China, which continues to be its largest manufacturing hub by a significant margin. The transition had already begun prior to the Covid-19 pandemic, which subsequently disrupted industrial supply chains and led the US iPhone manufacturer to seek diversification in other nations.
Nevertheless, this shift has become a matter of political contention following Trump’s re-election, as he has engaged in disputes with China regarding tariffs and is advocating for Apple to relocate its manufacturing back to America.
“We are treating you really good, we put up with all the plants you built in China for years,” said the US President Donald Trump last week during his visit to Qatar. “We are not interested in you building in India.”
Earlier this week, Foxconn declared a $1.5 billion investment in its Indian subsidiary, Yuzhan Technology India, through a filing with the London Stock Exchange.
In October, the Tamil Nadu state government sanctioned a $1.54 billion (USD) investment by Yuzhan for a display module assembly facility located in the ESR Oragadam Industrial & Logistics Park, which is a short distance from Foxconn’s current iPhone manufacturing plant near Chennai. Officials, who requested anonymity due to the political and commercial sensitivity surrounding Apple’s transition of manufacturing to India, indicated that the $1.5 billion is designated for this facility, noting that it will be supplying Apple.
The display module in an iPhone is situated beneath the glass screen and is responsible for all screen functionalities, including the touch interface, brightness, and color.
