Foxconn likely to invest $1 billion in smartphone display plant in Tamil Nadu
Foxconn is looking to set up a smartphone display plant in Tamil Nadu, which will cut down India's reliance on Chinese display modules
Foxconn, the Taiwanese tech giant and the contracted iPhone producer, is planning to invest around $1 billion in the Indian market. The company is looking to set up a smartphone display plant in Tamil Nadu, which will cut down India’s reliance on Chinese display modules, reports.
According to the Economic Times’ report, the company hasn’t revealed any specific timeline, but the aim is to launch operations “as soon as possible.”
With this first-of-its-kind facility in India, Foxconn aims to completely remove the Chinese display modules from the Indian market. Its strategy is to allow other contract manufacturers like Pegatron and Tata Electronics to use their components, cutting down the Chinese reliance.
“Foxconn has picked up about 500,000 square feet at a plug and play facility at the ESR Oragadam Industrial & Logistics Park, which is right next to their smartphone assembly unit near Chennai,” one of the sources told.
Foxconn expanding its market in India
Foxconn has been expanding its market in India with a maiden entry in other sectors like ICT, electric vehicles, batteries, and semiconductors. Meanwhile, this new facility is a strategic move for the Taiwanese company, as they are also assembling Google Pixel phones in India.
India’s dependence on China
Currently, India is heavily dependent on China for display modules, as we import 60–65 per cent of them from China. However, local assembling of display modules will cut down input costs and further shorten the supply chain.
Samsung Display, BOE Technology, LG Display, Tianma Microelectronics, AU Optronics, and Japan Display Inc. are some of the leading companies in the global display module industry. Meanwhile, in India, Chinese companies capture the major part of the market with companies like TCL CSOT in Tirupati, Andhra Pradesh, and TXD (India) Technology in Bawal, Haryana, which assembles modules for Samsung, Xiaomi, Vivo, and Oppo.
Foxconn’s move goes parallel with Apple’s plan of reducing dependency on China as the biggest smartphone brand shifts its focus towards India.
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