Foxconn is solidifying its role in Apple’s manufacturing efforts in India. After years of primarily focusing on iPhone assembly, the Taiwanese contract manufacturer is gearing up to produce iPhone casings locally for the very first time. Here’s why this development is significant.
According to a recent report from The Economic Times, Foxconn is establishing a new facility at the ESR Industrial Park in Oragadam, Tamil Nadu, aimed specifically at manufacturing metal casings for iPhones.
Previously, casings—often referred to as iPhone chassis or enclosures—were only manufactured in India by Tata Electronics, which recently became known as Apple’s new partner for iPhone and MacBook repairs in the country.
Foxconn seizes the opportunity
This development marks Foxconn’s initial venture into this segment of the iPhone supply chain on Indian soil. So far, its operations in the country have predominantly revolved around iPhone assembly at its Sriperumbudur location, as well as newer initiatives like AirPods assembly in Hyderabad and an upcoming major iPhone assembly plant near Bengaluru.
This move will enable Foxconn to slightly elevate the proportion of iPhone production value occurring locally, although the overall effect will remain minimal. Typically, iPhone enclosures account for merely 2-3% of the total materials cost of the device.
Even with this new ability, Foxconn’s overall value addition in India is likely to stay below 10%, as noted by Neil Shah, co-founder and industry analyst at Counterpoint Research.
He also pointed out that Apple already sources enclosures from various suppliers globally, including Foxconn in other regions, making this expansion into India a logical next step.
As for the report, construction of the new facility is already in progress. It is being built in the same industrial park as another upcoming Foxconn plant dedicated to display module assembly for iPhones.
Geopolitics, tariffs, and Trump
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America to be manufactured in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank you for your attention to this matter!”
For now, however, Foxconn’s expansion in India shows no indications of slowing, nor does Apple’s commitment to the region. From iPhone casings to display modules, AirPods, complete iPhone assembly, and a new store, the company is progressively enhancing its role in Apple’s strategy for India, regardless of how this might develop in political circles.
