Foxconn planning to invest $1 billion in Tamil Nadu for smartphone display module facility: Report

Foxconn is considering investing $1 billion to set up a facility in Tamil Nadu to assemble smartphone display modules, according to a report by The Economic Times. This will be the first display module unit Foxconn has built in India and is expected to primarily support Apple’s iPhone production. However, other manufacturers like Pegatron or Tata Electronics may also be able to use components from this facility, potentially reducing reliance on China for imports.

Foxconn has secured 500,000 square feet at an industrial park in Oragadam, near Chennai, which is next to its existing smartphone assembly plant, according to the report. Industry experts believe this move will help India climb the value chain in electronics manufacturing. According to Tarun Pathak, research director at Counterpoint, assembling displays locally could add 2-3% value to the production process in India, in addition to the 5% value added by phone assembly. The company’s new display unit may also streamline its plans to assemble Google Pixel phones in India.

Foxconn is rapidly expanding its smartphone business in India and also plans to enter other sectors like electric vehicles (EVs), batteries, and semiconductors.

Currently, India imports the majority of its display modules, primarily from China and South Korea. An executive told The Economic Times that setting up local assembly units could reduce supply chain delays and costs, benefiting brands by shortening delivery times. Major global players in display modules include Samsung Display, BOE Technology, and LG Display, while local assembly is currently dominated by Chinese firms like TCL CSOT and TXD (India) Technology.

Challenges remain, particularly in sourcing components, which are still largely imported from China, and building a skilled workforce in advanced display technology.

Foxconn’s deepening supply chain in India aligns with Apple’s broader strategy to reduce dependence on China. Apple, through its partnerships with Foxconn, is aggressively expanding operations in India to diversify its production base.