Foxconn, based in Taiwan, is planning to manufacture iPhone enclosures in India and is exploring the establishment of a new facility within the ESR Industrial Park located in Oragadam, Tamil Nadu.

In addition, the company is quickly broadening its operations with its forthcoming plant in Devanahalli, situated near Bengaluru.

Apart from assembling iPhones, Foxconn has also set up a new facility in Hyderabad that focuses on assembling AirPods.

Foxconn intends to initiate the production of enclosures in Tamil Nadu as they reinforce their presence in the country.

Construction has commenced on their enclosure unit at the industrial park.

This unit will be distinct and in proximity to their upcoming display module assembly plant, which is nearing completion in the same industrial park.

Experts stated that Foxconn’s move into this area indicates that Apple aims to diversify its suppliers in India, similar to its approach in China where it collaborates with several vendors for various components.

Neil Shah, vice president of Counterpoint Research, mentioned that Apple globally procures enclosures from multiple suppliers, with Foxconn being one of them.

 

Therefore, it is logical for Foxconn to expand production in India, Shah noted.

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He also remarked that while it’s challenging to determine the individual value added, Foxconn's specific contribution to Apple would be less than 10 percent. Moreover, he pointed out that enclosures make up a minor portion of Apple's Bill of Materials (BoM), roughly around 2–3 percent.

Hence, Foxconn's venture into enclosures will not greatly boost their value addition percentage-wise. Nonetheless, it represents a noteworthy advancement as Apple gradually expands its manufacturing capabilities in India.

Foxconn has secured approximately 500,000 square feet in a plug and play facility at the ESR Oragadam Industrial & Logistics Park, conveniently located next to their smartphone assembly unit close to Chennai.

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The manufacturer of the renowned iPhone is adopting a model that allows other contract manufacturers—such as Pegatron or Tata Electronics—to utilize components from this facility instead of importing modules assembled in China.

On May 19, Foxconn disclosed its intention to invest an additional $1.5 billion (around Rs 12,800 crore) in this unit through a filing with the London Stock Exchange.

All these expansion announcements coincide with Apple CEO Tim Cook's recent comments that India is set to become the primary manufacturing center for iPhones sold in the US.