‘Supply chain change?’ Anand Mahindra reacts as Foxconn announces plans for its iPhone factory in Tamil Nadu

Apple supplier Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, Reuters news agency said on Saturday citing government sources.

Foxconn is facing disruption in China due to strict virus restrictions at its Zhengzhou factory. As a result, production at the world’s biggest iPhone factory was halted, fueling concerns about the impact of China’s virus policy on global supply chains.

As a result, Taiwanese company Foxconn is now planning to boost the workforce at its Tamil Nadu factory in India.

The agency said the company plans to add an additional 53,000 workers over the next two years to boost production of iPhones.

Mahindra Group Chairman Anand Mahindra reacted to the news. Taking to Twitter, Mahindra wondered if it could be a “slight sound of change in the global supply chain”.

Mahindra specifically wrote on Twitter, “No fanfare or drumbeats. But could this be the sweet sound of a global supply chain shift?”

While the size of the plant in the southern Indian state of Tamil Nadu is dwarfed by that of the Foxconn plant in Zhengzhou, which employs 200,000 workers, it is at the heart of efforts to Apple to move production out of China.

Foxconn officially called Hon Hai Precision Industry Co Ltd, opened the factory in India in 2019, and increased production. It started producing the iPhone 14 this year.

Foxconn has shared its plans with Tamil Nadu officials regarding accelerating its hiring efforts at the Indian factory due to disruptions in China, the first government source said.

Beyond iPhones, the factory also makes products for other global tech companies, but the new hiring surge is primarily driven by its need to meet growing iPhone demand, according to a Reuters report.

On Oct. 27, Tamil Nadu’s investment promotion branch tweeted that senior government officials had visited Taiwan and met with Liu. They had “thoroughly discussed Foxconn’s plans for new business and investment” and offered government support.

Last year Foxconn’s factory in Tamil Nadu was at the center of a mass food poisoning incident that sparked employee protests and brought to light the living conditions of workers at nearby hostels From the factory.

Currently, iPhones are assembled in India by at least three of Apple’s global suppliers: Foxconn and Pegatron in Tamil Nadu; and Wistron in the neighboring state of Karnataka.

JP Morgan analysts estimated in September that Apple could make one in four iPhones in India by 2025, and 25% of all Apple products, including Macs, iPads, Apple Watches and AirPods, will be made outside China. by 2025 compared to 5% currently. .

(With Reuters entries)

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