Foxconn to Expand Apple Product Manufacturing in India, Adding iPads to Assembly Line

Foxconn to expand its product manufacturing operations for Apple in India, to add this gadget to the list - Times of India

Foxconn, Apple's major contract manufacturer, is reportedly planning to expand its operations in India to include the assembly of iPads. According to sources familiar with the matter, the Taiwanese company is considering using its facility in Sriperumbudur, Tamil Nadu, to manufacture Apple's popular tablet devices. The Economic Times reports that discussions with the Indian government have already taken place, with initial feedback appearing positive.This move would mark a significant expansion of Foxconn's current operations in India, which have so far focused primarily on iPhone assembly. Industry experts suggest that the capabilities required for iPad production are similar to those used in smartphone assembly, making it a logical next step for Foxconn's Indian operations. The expansion aligns with Apple's strategy to diversify its supply chain away from China, a trend that has accelerated in recent years. The potential iPad assembly in India is expected to begin in the latter half of 2025, sources told the Economic Times. This timeline allows Foxconn to benefit from India's Production Linked Incentive (PLI) scheme for IT hardware, which includes tablets. Foxconn's plans for India extend beyond iPad assembly. The company recently announced a Rs 1,200 crore investment to build a new factory on company-owned land. It is also constructing a mega factory near Bengaluru, primarily for iPhone production. While iPad assembly seems imminent, the production of Mac laptops in India may take longer due to more complex manufacturing requirements. Foxconn is also working with Google to manufacture the Pixel phones in the country, and also exploring the possibility of manufacturing AI servers at its Indian facilities, further diversifying its product range in the country. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Foxconn eyes major expansion in India: Plans to assemble Apple iPads at Tamil Nadu facility

Foxconn is exploring the possibility of assembling Apple iPads at its Tamil Nadu facility, marking a significant expansion from its current focus on iPhones. The move indicates confidence in India's growing supply chain capabilities for Apple products. Foxconn is evaluating plans to assemble Apple's flagship tablet iPad in India, marking a significant expansion of its current operations focused on making iPhones, multiple people aware of the developments told ET. The Taiwanese contract manufacturer may begin assembling iPads at its facility in Tamil Nadu's Sriperumbudur, in what will be a show of confidence in the rapidly expanding supply chain in India for Apple's iconic products. So far, India-based units of Foxconn and other global contract manufacturers have only assembled Apple's smartphones. "Foxconn is seriously looking to start assembling Apple iPads out of its Tamil Nadu facility," according to one person cited above. A second source in the know said "some rounds of discussions have already happened with the government as well on this", adding that "their experience so far has been very good, and they are coming full force. They will double what they have in the next few years, which includes iPhone, iPads and some other products too." Apple's Diversification Plan: However, assembly of the "Mac range of laptops may take some time as the produc-tion volume is very small". Apple's plans to expand the portfolio of products assembled in India ties into its strategy of diversification away from Chi- na. In fact, Apple had already diverted a portion of its product development for the iPad to Vietnam last year. Queries sent to Apple and Foxconn remained unanswered as of press time Thursday. Industry experts pointed out that capabi- lities required to produce an iPad are similar to that for smartphone assembly, un- like a laptop which requires far more complex production facilities. "It ( iPad) is like a bigger iPhone in essen-e," said one industry source on condition of anonymity. "So, it is something that can be assem- bled in India without too much trouble as Apple's contract manufacturers are alrea- dy well equipped to manage such functions." Taiwanese research firm Isaiah Rese- arch told ET that electric car maker BYD's facility in Phu Tho, Vietnam, started as- sembling iPads in the second half of 2022 and that as per their estimates, Vietnam accounts for about 5-10% of all iPad assembly. Additionally, Foxconn set up production lines in Bac Giang, Vietnam, to start assembling MacBooks. Pull of the Indian market: "Expanding iPad production in India is primarily aimed at diversifying supply chain risks," said Boyce Fan, Vice President of Research at TrendForce. "Additionally, targeting the domestic market in India is also a consideration. It is currently estimated that the annual iPad shipments will reach 49 million this year, a year-over-year increase of 4.5%," he noted. To be sure, Foxconn will also gain from India's production-linked incentives (PLI 2.0 for IT Hardware) which includes tablets, as it aggressively increases its investments in India. ET had reported on June 28 that the company was looking to begin manufacturing AI servers -- the high-performance computing engines that train and run artificial intelligence models -- at its Sriperumbudur plant. Further, Google was said to be in advanced talks with Foxconn to make Pixel smartphones at the same facility. In February, Foxconn in an exchange filing had said its Indian subsidiary would spend Rs 1,200 crore to build a factory that would come up on company-owned land. It is also building a mega factory outside Bengaluru, which is expected to primarily make iPhones. The Taiwanese contract manufacturer has also announced that it would invest $37.2 million and would join hands with IT major HCL Group to establish a chip packaging and testing facility in India. The proposal is, however, awaiting government approval. With iPhones, India has reached Completely Knocked Down (CKD) levels but with iPads, it is likely that they will have to start with Semi-Knocked Down (SKD) first for some time before reaching CKD levels, said an industry source. SKD refers to a manufacturing and trade practice where a product is partially assembled, before being exported to another country. CKD is like SKD, but it goes a step further. In CKD, the product is shipped in a completely disassembled state. Ashweej Aithal, an analyst at market research firm Canalys, said Apple was initially hesitant about locally manufacturing iPads and MacBooks in India due to its previous conflicts with government restrictions on its collaboration with BYD. The company's attempt to partner with China's BYD to make iPads in India hit a roadblock due to government restrictions owing to geopolitical concerns. "The recent reduction of the Basic Customs Duty (BCD) in the Budget from 20% to 15% on components is also expected to expedite domestic manufacturing plans," Aithal said. "Foxconn is likely to start assembling iPads in the second half of next year if these plans materialise."

Foxconn eyes major expansion in India: Plans to assemble Apple iPads at Tamil Nadu facility - ET Telecom

Foxconn is evaluating plans to assemble Apple's flagship tablet iPad in India, marking a significant expansion of its current operations focused on making iPhones, multiple people aware of the developments told ET. The Taiwanese contract manufacturer may begin assembling iPads at its facility in Tamil Nadu's Sriperumbudur, in what will be a show of confidence in the rapidly expanding supply chain in India for Apple's iconic products. So far, India-based units of Foxconn and other global contract manufacturers have only assembled Apple's smartphones. "Foxconn is seriously looking to start assembling Apple iPads out of its Tamil Nadu facility," according to one person cited above. A second source in the know said "some rounds of discussions have already happened with the government as well on this", adding that "their experience so far has been very good, and they are coming full force. They will double what they have in the next few years, which includes iPhone, iPads and some other products too." Apple's Diversification Plan: However, assembly of the "Mac range of laptops may take some time as the produc-tion volume is very small". Apple's plans to expand the portfolio of products assembled in India ties into its strategy of diversification away from Chi- na. In fact, Apple had already diverted a portion of its product development for the iPad to Vietnam last year. Queries sent to Apple and Foxconn remained unanswered as of press time Thursday. Industry experts pointed out that capabi- lities required to produce an iPad are similar to that for smartphone assembly, un- like a laptop which requires far more complex production facilities. "It ( iPad) is like a bigger iPhone in essen-e," said one industry source on condition of anonymity. "So, it is something that can be assem- bled in India without too much trouble as Apple's contract manufacturers are alrea- dy well equipped to manage such functions." Taiwanese research firm Isaiah Rese- arch told ET that electric car maker BYD's facility in Phu Tho, Vietnam, started as- sembling iPads in the second half of 2022 and that as per their estimates, Vietnam accounts for about 5-10% of all iPad assembly. Additionally, Foxconn set up production lines in Bac Giang, Vietnam, to start assembling MacBooks. Pull of the Indian market: "Expanding iPad production in India is primarily aimed at diversifying supply chain risks," said Boyce Fan, Vice President of Research at TrendForce. "Additionally, targeting the domestic market in India is also a consideration. It is currently estimated that the annual iPad shipments will reach 49 million this year, a year-over-year increase of 4.5%," he noted. To be sure, Foxconn will also gain from India's production-linked incentives (PLI 2.0 for IT Hardware) which includes tablets, as it aggressively increases its investments in India. ET had reported on June 28 that the company was looking to begin manufacturing AI servers -- the high-performance computing engines that train and run artificial intelligence models -- at its Sriperumbudur plant. Further, Google was said to be in advanced talks with Foxconn to make Pixel smartphones at the same facility. In February, Foxconn in an exchange filing had said its Indian subsidiary would spend Rs 1,200 crore to build a factory that would come up on company-owned land. It is also building a mega factory outside Bengaluru, which is expected to primarily make iPhones. The Taiwanese contract manufacturer has also announced that it would invest $37.2 million and would join hands with IT major HCL Group to establish a chip packaging and testing facility in India. The proposal is, however, awaiting government approval. With iPhones, India has reached Completely Knocked Down (CKD) levels but with iPads, it is likely that they will have to start with Semi-Knocked Down (SKD) first for some time before reaching CKD levels, said an industry source. SKD refers to a manufacturing and trade practice where a product is partially assembled, before being exported to another country. CKD is like SKD, but it goes a step further. In CKD, the product is shipped in a completely disassembled state. Ashweej Aithal, an analyst at market research firm Canalys, said Apple was initially hesitant about locally manufacturing iPads and MacBooks in India due to its previous conflicts with government restrictions on its collaboration with BYD. The company's attempt to partner with China's BYD to make iPads in India hit a roadblock due to government restrictions owing to geopolitical concerns. "The recent reduction of the Basic Customs Duty (BCD) in the Budget from 20% to 15% on components is also expected to expedite domestic manufacturing plans," Aithal said. "Foxconn is likely to start assembling iPads in the second half of next year if these plans materialise."

Foxconn iPadding Up to Assemble in India

Foxconn is evaluating plans to assemble Apple's flagship tablet iPad in India, marking a significant expansion of its current operations focused on making iPhones, multiple people aware of the developments told ET. The Taiwanese contract manufacturer may begin assembling iPads at its facility in Tamil Nadu's Sriperumbudur, in what will be a show of confidence in the rapidly expanding supply chain in India for Apple's iconic products. So far, India-based units of Foxconn and other global contract manufacturers have only assembled Apple's smartphones. "Foxconn is seriously looking to start assembling Apple iPads out of its Tamil Nadu facility," according to one person cited above. A second source in the know said "some rounds of discussions have already happened with the government as well on this", adding that "their experience so far has been very good, and they are coming full force. They will double what they have in the next few years, which includes iPhone, iPads and some other products too". However, assembly of the "Mac range of laptops may take some time as the production volume is very small". Apple's plans to expand the portfolio of products assembled in India ties into its strategy of diversification away from China. In fact, Apple had already diverted a portion of its product development for the iPad to Vietnam last year. Queries sent to Apple and Foxconn remained unanswered as of press time Thursday. Industry experts pointed out that capabilities required to produce an iPad are similar to that for smartphone assembly, unlike a laptop which requires far more complex production facilities. "It ( iPad) is like a bigger iPhone in essence," said one industry source on condition of anonymity. "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." Taiwanese research firm Isaiah Research told ET that electric car maker BYD's facility in Phu Tho, Vietnam, started assembling iPads in the second half of 2022 and that as per their estimates, Vietnam accounts for about 5-10% of all iPad assembly. Additionally, Foxconn set up production lines in Bac Giang, Vietnam, to start assembling MacBooks. "Expanding iPad production in India is primarily aimed at diversifying supply chain risks," said Boyce Fan, Vice President of Research at TrendForce. "Additionally, targeting the domestic market in India is also a consideration. It is currently estimated that the annual iPad shipments will reach 49 million this year, a year-over-year increase of 4.5%," he noted. To be sure, Foxconn will also gain from India's production-linked incentives (PLI 2.0 for IT Hardware) which includes tablets, as it aggressively increases its investments in India. ET had reported on June 28 that the company was looking to begin manufacturing AI servers -- the high-performance computing engines that train and run artificial intelligence models -- at its Sriperumbudur plant. Further, Google was said to be in advanced talks with Foxconn to make Pixel smartphones at the same facility. In February, Foxconn in an exchange filing had said its Indian subsidiary would spend Rs 1,200 crore to build a factory that would come up on company-owned land. It is also building a mega factory outside Bengaluru, which is expected to primarily make iPhones. The Taiwanese contract manufacturer has also announced that it would invest $37.2 million and would join hands with IT major HCL Group to establish a chip packaging and testing facility in India. The proposal is, however, awaiting government approval. With iPhones, India has reached Completely Knocked Down (CKD) levels but with iPads, it is likely that they will have to start with Semi-Knocked Down (SKD) first for some time before reaching CKD levels, said an industry source. SKD refers to a manufacturing and trade practice where a product is partially assembled, before being exported to another country. CKD is like SKD, but it goes a step further. In CKD, the product is shipped in a completely disassembled state. Ashweej Aithal, an analyst at market research firm Canalys, said Apple was initially hesitant about locally manufacturing iPads and MacBooks in India due to its previous conflicts with government restrictions on its collaboration with BYD. The company's attempt to partner with China's BYD to make iPads in India hit a roadblock due to government restrictions owing to geopolitical concerns. "The recent reduction of the Basic Customs Duty (BCD) in the Budget from 20% to 15% on components is also expected to expedite domestic manufacturing plans," Aithal said. "Foxconn is likely to start assembling iPads in the second half of next year if these plans materialise."

After iPhone, Foxconn Now Looks To Assemble Apple iPads In India

Recently, Foxconn was reportedly planning to manufacture artificial intelligence servers at its facilities in India Aligning with its broader strategy to diversify beyond manufacturing iPhones and AI servers in India, Apple supplier Foxconn is now reportedly looking to assemble iPads in the country at its Tamil Nadu's Sriperumbudur facility. According to an ET report, Foxconn is evaluating plans to assemble Apple's flagship tablet, iPad, in India, marking a significant expansion of its current operations focused on manufacturing iPhones. Until now, Foxconn India, along with other global contract manufacturers, have only assembled Apple's smartphones. "Some rounds of discussions have already happened with the government on this. Their experience so far has been very good, and they are coming in full force. They will double what they have in the next few years, which includes iPhones, iPads, and some other products too," a source was quoted as saying by ET. However, the source added that the assembly of the Mac range of laptops is expected to take some time due to the small production volume. Inc42 has reached out to Foxconn for a comment on the development. The story will be updated based on the response. It is pertinent to note that several electronics companies have significantly expanded their footprint in India in the recent past, with Foxconn, Wistron, Tata Electronics, and Kaynes Technology leading this trend. This development also comes at a time when Apple supplier Foxconn plans to invest an additional INR 13,911 Cr ($1.67 Bn) in Karnataka. Foxconn has been strategically shifting its production away from China due to disruptions caused by COVID-19 and geopolitical tensions. Over the past year, the iPhone maker has significantly expanded its footprint in India, making substantial investments in manufacturing facilities in the southern part of the country.