Chennai, India – July 3, 2025 – Tamil Nadu is poised to solidify its position as India’s electronics manufacturing powerhouse as Foxconn, the world’s largest contract manufacturer and Apple’s key supplier, announces a groundbreaking new venture in the state. The Taiwanese giant is setting up a dedicated iPhone enclosure manufacturing unit at the ESR Industrial Park in Oragadam, Tamil Nadu, marking its first foray into producing iPhone casings in India. This move, coupled with a nearby display module assembly plant, is set to create thousands of jobs, drive innovation, and strengthen India’s role in Apple’s global supply chain. As the nation celebrates this milestone, here’s a deep dive into how Foxconn’s Tamil Nadu triumph is reshaping India’s tech landscape.

A Strategic Expansion in Tamil Nadu

Foxconn’s new iPhone enclosure unit, located near its existing smartphone assembly facility in Sriperumbudur, represents a significant step in deepening its Indian footprint. Until now, iPhone enclosures—metal casings that form the chassis of the device—were exclusively manufactured in India by Tata Electronics at its Hosur facility. Foxconn’s entry into this space, as reported by The Economic Times, signals Apple’s intent to diversify its supplier base within India, reducing reliance on single vendors and aligning with its broader strategy to shift production away from China.

The new unit, already under construction at the ESR Industrial Park, is part of a larger ecosystem Foxconn is building in Tamil Nadu. Adjacent to it, a display module assembly plant—the first of its kind in India—is in advanced stages of development. This facility will produce critical components for iPhone screens, further boosting local value addition. The Tamil Nadu government approved a ₹13,180 crore investment by Foxconn’s subsidiary, Yuzhan Technology (India), in October 2024, underscoring the scale of this project.

This dual investment in enclosures and display modules is expected to create approximately 14,000 jobs, offering a significant economic boost to the region. Tamil Nadu, already home to Foxconn’s iPhone assembly plant in Sriperumbudur and AirPods production in Hyderabad, is emerging as a hub for high-tech manufacturing, attracting global attention.

Driving Economic Growth and Job Creation

The establishment of the iPhone enclosure unit is a boon for Tamil Nadu’s economy, particularly for local communities in Oragadam and Sriperumbudur. The 14,000 new jobs will span a range of roles, from skilled technicians to assembly line workers, providing opportunities for both urban and rural youth. Tamil Nadu’s robust industrial infrastructure, supported by initiatives like the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), has made it an attractive destination for global manufacturers like Foxconn. The state accounts for 42% of India’s 14.9 lakh registered women factory workers, and Foxconn’s expansion could further empower women in the workforce, despite past controversies over hiring practices.

However, Foxconn’s labor practices have faced scrutiny. A 2024 Reuters investigation alleged that the company excluded married women from jobs at its Sriperumbudur plant, citing family responsibilities. While Foxconn refuted these claims, the Tamil Nadu government has since sought detailed labor reports to ensure compliance with fair hiring practices. This expansion offers an opportunity for Foxconn to address these concerns by implementing inclusive policies, aligning with India’s push for equitable employment.

Beyond direct employment, the new unit is expected to stimulate ancillary industries, from logistics to component suppliers, creating a ripple effect across Tamil Nadu’s economy. The state’s proximity to Chennai’s port facilities enhances its appeal as a manufacturing hub, enabling efficient exports. In fact, Foxconn exported $4.4 billion worth of iPhones to the US in the first five months of 2025, with 97% of its India-made iPhones destined for the US market between March and May, reflecting Tamil Nadu’s growing role in global trade.

Innovation at the Core

Foxconn’s Tamil Nadu venture is not just about job creation—it’s about fostering innovation in India’s electronics sector. The iPhone enclosure unit, while contributing only 2-3% to the overall production value of an iPhone, is a strategic move that enhances local manufacturing capabilities. By producing enclosures locally, Foxconn reduces reliance on imported components from China, streamlining supply chains and cutting delivery times. This aligns with Apple’s goal to make India a primary manufacturing hub, with CEO Tim Cook stating that the majority of iPhones sold in the US during the June 2025 quarter will originate from India.

The adjacent display module plant, expected to be operational soon, will further elevate India’s position in the global electronics value chain. Currently, India imports most smartphone display modules from China and South Korea. By localizing production, Foxconn aims to supply not only Apple but also other manufacturers like Pegatron and Tata Electronics, fostering a collaborative ecosystem. Industry experts estimate that display module assembly could add another 2-3% to local value addition, complementing the 5% already contributed by phone assembly.

This push for innovation is bolstered by Foxconn’s broader investments in India. The company has allocated ₹25,000 crore for a 300-acre campus in Devanahalli, Karnataka, and recently invested $31.8 million in equipment to produce the iPhone 16 Pro series in Tamil Nadu, making India the first country outside China to manufacture these premium models. These efforts align with India’s “Make in India” initiative, which has attracted significant foreign investment and positioned the country as a viable alternative to China in the global supply chain.

Navigating Global Challenges

Foxconn’s expansion comes amid complex global dynamics. US President Donald Trump’s recent call for Apple to shift production to the US, coupled with threats of a 25% tariff on non-US-made iPhones, has created uncertainty. However, Apple and Foxconn remain committed to India, with the latter doubling its India revenue to over $20 billion in FY25, largely driven by iPhone production. India’s share of global iPhone output reached 18% in 2024 and is projected to hit 32% by the end of 2025, underscoring its growing importance.

Geopolitical tensions and supply chain disruptions have accelerated Apple’s diversification strategy. By expanding in Tamil Nadu, Foxconn is not only mitigating risks associated with over-reliance on China but also capitalizing on India’s favorable policies and skilled workforce. The Tamil Nadu government’s proactive support, including financial incentives and streamlined approvals, has been instrumental in facilitating this growth.

A Bright Future for Tamil Nadu

Foxconn’s new iPhone enclosure unit is a testament to Tamil Nadu’s emergence as a global electronics manufacturing hub. The state’s strategic location, skilled labor pool, and government support have made it a magnet for companies like Foxconn, Samsung, and Dell. The new facility, combined with the display module plant, positions Tamil Nadu at the forefront of India’s tech revolution, driving economic growth and technological advancement.

As Foxconn and Apple deepen their partnership in India, the benefits extend beyond economics. The focus on local manufacturing fosters innovation, reduces import dependency, and enhances India’s global competitiveness. For Tamil Nadu’s youth, the promise of 14,000 new jobs offers a chance to be part of a transformative journey, while for Apple, it’s a step toward a more resilient supply chain. As construction progresses at Oragadam, Foxconn’s Tamil Nadu triumph is set to leave a lasting legacy in India’s tech story.

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Last Updated on: Thursday, July 3, 2025 5:07 pm by Swayam Sharma | Published by: Swayam Sharma on Thursday, July 3, 2025 5:07 pm | News Categories: News

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