‘Supply chain shift?’ Anand Mahindra reacts as Foxconn announces plans for its iPhone plant in Tamil Nadu | Tech US News


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

Foxconn is facing disruptions at its Zhengzhou plant due to strict virus restrictions in China. Hence, production at the world’s largest iPhone factory has been disrupted, raising concerns about the impact of China’s virus policy on global supply chains.

As a result, Taiwan-based Foxconn now plans to expand the workforce at its plant in Tamil Nadu, India.

The company plans to add 53,000 more workers over the next two years to ramp up production of iPhones, the agency said.

Mahindra Group Chairman Anand Mahindra reacted to the news. Taking to Twitter, Mahindra questioned whether this could be the ‘soft voice of a global supply chain shift’.

Mahindra aptly wrote on Twitter, “No fanfare or drum rolls. But could this be the gentle sound of a global supply chain shift?”

Although the plant in India’s southern state of Tamil Nadu is smaller than Foxconn’s Zhengzhou plant, which employs 200,000 workers, it is at the center of Apple’s efforts to shift production away from China.

Foxconn, formally called Hon Hai Precision Industry Co Ltd, opened an India plant in 2019 and is ramping up production. It started manufacturing the iPhone 14 this year.

Foxconn has shared its plans with Tamil Nadu authorities to speed up its hiring efforts at the Indian plant due to constraints in China, an official source said earlier.

In addition to iPhones, the plant also makes products for other global tech firms, but according to a Reuters report, the need to hire new employees is mainly driven by growing demand for iPhones.

On October 27, Tamil Nadu’s investment promotion arm tweeted that top government officials had traveled to Taiwan and met Liu. He “discussed Foxconn’s new ventures and investment plans in detail” and offered government support.

Last year, Foxconn’s Tamil Nadu plant was at the center of a large-scale food poisoning incident that sparked employee protests and highlighted the living conditions of workers in hostels near the factory.

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

JPMorgan analysts estimated in September that Apple could make one in four iPhones in India by 2025, and 25 percent of all Apple products, including Macs, iPads, Apple Watches, and AirPods. , will be produced outside China by 2025 which is currently 5%. .

(with input from Reuters)

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