Foxconn To Quadruple India Workforce To Tackle iPhone Production Crisis
Apple has long depended on massive production facilities in China to make most of its products. While Apple has been trying to lessen its dependence on China by moving production facilities to countries like India and Vietnam, Apple is still heavily dependent on China for its most important product: the iPhone.
According to recent estimates, more than 95% of all iPhones are still made in China — most of which come from a single Foxconn-owned production facility in Zhengzhou. As the world's largest iPhone factory, Foxconn's Zhengzhou facility was recently in the news after COVID-19 lockdowns affected Foxconn's production.
With more than 200,000 people working at this single facility, any disruption to its smooth functioning would almost certainly result in a supply crunch. Now, it's increasingly becoming evident that such a supply crunch is already underway. Apple recently issued a statement confirming that COVID-19 measures in China have impacted the production of the iPhone 14 Pro and iPhone 14 Pro Max models. While the true scale of these disruptions is yet to be ascertained, Apple has indicated that customers will experience longer wait times for the iPhone 14 Pro and iPhone 14 Pro Max.
While Apple does not have an immediate solution to tackle this problem, the company is making efforts to ensure it does not face such a crisis in the future. To that effect, Apple's partner Foxconn is now considering quadrupling its workforce in India to increase the production capacity of made-in-India iPhones.
25% of iPhones to be made in India by 2025
Earlier this year, analysts at J.P. Morgan claimed (via TechCrunch) that Apple was looking to make 25% of all its iPhones in India by 2025. Foxconn — which already owns an iPhone facility in India — was a key player in this expansion. Reuters' latest report is in line with this vision. Foxconn's current iPhone facility in India employs an estimated 17,000 people. While it pales in comparison to the number of employees at China's Zhengzhou plant, the company plans to add 53,000 people to its workforce in the next two years — taking the total headcount to more than 70,000.
Foxconn's iPhone plant in India is located in the Southern part of the country, in the State of Tamil Nadu, and has only been in service since 2019. In the beginning, this facility was primarily used to make low-end iPhones and older models — primarily catering to India's local demand. Since 2022, however, the facility has been upgraded to produce Apple's newest iPhone 14 models (per Reuters).
Interestingly, a part of this plant is also involved in manufacturing Android smartphones for other brands. Foxconn is reportedly in talks with officials from the Indian government to inform them about their expansion plans. The Reuters report also quotes an Indian government official who confirmed that they are finalizing Foxconn's planned expansion in India.