Foxconn plans a $1 billion investment in Tamil Nadu for an advanced smartphone display assembly unit, marking its debut in India with a focus on Apple's iPhone production. The move aims to boost local sourcing, reduce imports, and elevate India's electronics industry. Industry experts foresee significant value addition. Foxconn's expansion into Google Pixel assembly and local display module production signals a strategic shift, aiming to streamline operations and reduce costs. Notable global players in the display market include Samsung, BOE, LG, and local Indian assemblers like TCL CSOT and TXD Technology.
Foxconn, the renowned Taiwanese electronics giant, is eyeing an impressive investment of approximately $1 billion to establish a cutting-edge smartphone display module assembly unit in Tamil Nadu, as per a report by The Economic Times. This potential venture signifies Foxconn's inaugural foray into such a facility within India, with a primary focus on catering to Apple's iPhone production needs.
The proposed facility is anticipated to adopt a forward-thinking model that encourages other industry players like Pegatron and Tata Electronics to procure components locally, thereby reducing their reliance on importing display modules from China.
According to insights shared in the report, Foxconn has secured around 500,000 sq ft of space at the ESR Oragadam Industrial & Logistics Park, strategically situated near its existing smartphone assembly plant close to Chennai.
Industry experts are optimistic about the transformative impact Foxconn's new initiative could have on India's electronics assembly and manufacturing ecosystem. Tarun Pathak, the research director at Counterpoint, highlighted that while phone assembly typically adds about 5% local value, integrating display assembly could contribute an additional 2–3%. The degree of value addition achieved within India is poised to play a pivotal role in shaping future outcomes.
Foxconn's expansion into assembling Google Pixel phones within India is viewed as a strategic maneuver aimed at streamlining production processes. The company's robust growth trajectory in the Indian smartphone market extends beyond mere assembly operations, with ambitions spanning industries such as electric vehicles, semiconductors, ICT, and batteries.
A notable executive from a consulting firm emphasized the significance of locally assembling display modules, citing India's heavy reliance on imported display components, which often results in elevated input costs and supply chain complexities. The executive estimated that a substantial portion of display module imports, ranging from 60–65%, and even up to 90% in specific segments, originate from China, with South Korea serving as the second-largest supplier at 20–25%. By shifting towards local assembly, manufacturers stand to benefit from reduced lead times, streamlined supply cycles, and cost efficiencies.
The global landscape of the display module market features prominent entities like Samsung Display (South Korea), BOE Technology (China), LG Display (South Korea), Tianma Microelectronics (China), AU Optronics (Taiwan), and Japan Display (Japan). Within India, major players in smartphone display module assembly include TCL CSOT in Tirupati, Andhra Pradesh, and TXD (India) Technology in Bawal, Haryana. TCL CSOT caters to Samsung and Xiaomi, while TXD services Vivo and Oppo, underscoring the diverse ecosystem flourishing within the country.
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