The global movement to ban Chinese products has created an opportunity for other nations to get into manufacturing. Foxconn already has a presence in India, it assembles low-cost iPhones in Chennai factory. The company is planning an expansion of its Chennai factory, the scale of expansion is not known yet. The reports suggest that it is part of a gradual shift by Apple to shift manufacturing of iPhones from China.
The US-China trade war has forced tech giants to move away from China. The trade war has already disrupted operations of many American tech companies. Apple is trying to steer away manufacturing from China to other countries.
Foxconn had announced expansion plans for India back in 2019. It had started assembling Apple iPhone X family in India. The Sriperumbudur factory, which is 50 km west of Chennai assembles the iPhone XR. It will also start assembling the iPhone SE 2020 models in India soon.
If Foxconn expands in India assembling capacity, it will create over 6,000 jobs in Chennai alone. This is a welcoming move for the Make in India initiative. Manufacturing of local phones will bring the cost of devices down. Foxconn operates another plant in Andhra Pradesh, which makes smartphones for Chinese smartphone brand, Xiaomi.
Apple’s other contract manufacturer, Wistron Corp assembles some of the iPhone models in Bengaluru factory. Wistron Corp also has expansion plans for India. The current anti-China sentiment in the country has pushed many manufacturers to make local products and reduce the import of Chinese phones. Samsung is another gadget-maker that is looking at flagship products in India.