Foxconn, a key manufacturing partner for Apple, is set to enhance its operations in India by initiating the production of iPhone casings within the country. This strategic move involves establishing a new facility at the ESR Industrial Park in Oragadam, Tamil Nadu, dedicated to manufacturing metal enclosures for iPhones.
Historically, Foxconn’s Indian operations have primarily focused on assembling iPhones at its Sriperumbudur plant. The addition of casing production signifies a significant expansion of its manufacturing capabilities in the region. This development aligns with Apple’s broader strategy to diversify its supply chain and reduce dependence on Chinese manufacturing.
The decision to produce iPhone casings locally is expected to incrementally increase the value of iPhone components manufactured in India. However, given that enclosures constitute approximately 2–3% of an iPhone’s total bill of materials, the overall impact on local value addition may remain modest. Industry analysts estimate that, even with this expansion, Foxconn’s total value addition in India will likely stay below 10%.
This move also reflects a broader trend of Apple and its partners investing in India’s manufacturing sector. In recent years, Apple has been working to establish a substantial manufacturing base in India, collaborating with companies like Foxconn and Tata Electronics. This initiative aims to mitigate risks associated with geopolitical tensions and supply chain disruptions in China.
The establishment of the new casing production unit is already underway, situated within the same industrial park as another upcoming Foxconn facility dedicated to assembling display modules for iPhones. This co-location is expected to streamline operations and enhance production efficiency.
Despite these advancements, challenges persist. Past disruptions at Apple facilities in India, including incidents like the fire at Tata Electronics’ plant in Tamil Nadu, have highlighted the complexities of scaling up manufacturing operations in the region. Additionally, achieving the high-quality standards required for iPhone components has been a hurdle, with reports indicating that only 50% of iPhone casings produced in India met Apple’s quality standards as of early 2023.
Nevertheless, Foxconn’s expansion into casing production in India marks a significant step in Apple’s ongoing efforts to diversify its manufacturing footprint and strengthen its presence in the Indian market.
