Foxconn eyes $1 billion display module plant in Tamil Nadu: Report

This will be the first display module facility Foxconn has built in India, and it is expected to mainly support the production of Apple's iPhones.

In Short

• New facility to assemble smartphone display modules
• Plant to mainly support Apple’s iPhone production
• Foxconn secures 5,00,000 sq ft land in Oragadam

Foxconn, one of the world’s largest electronics manufacturers, is planning to invest $1 billion to establish a new facility in Tamil Nadu.

The new plant will focus on assembling smartphone display modules, according to a report by The Economic Times. This will be the first display module facility Foxconn has built in India, and it is expected to mainly support the production of Apple’s iPhones.

The new plant could also benefit other manufacturers such as Pegatron and Tata Electronics, as these companies may have access to the components produced at the facility.

Foxconn has reportedly secured 5,00,000 square feet of land at an industrial park in Oragadam, near Chennai.

This new site is close to its existing smartphone assembly plant, allowing for streamlined operations and potentially faster production cycles.

According to Tarun Pathak, research director at Counterpoint, assembling display modules locally could add between 2-3% more value to the overall production process in India, on top of the 5% value already added by phone assembly. “This is a strategic move that could help India climb higher in the global electronics manufacturing ladder,” said Pathak.

Foxconn’s new display plant may also align with its broader plans to assemble other tech products in India, including Google Pixel phones, which are gaining popularity worldwide.

Foxconn has been rapidly expanding its business in India over the past few years, with a strong focus on smartphone assembly. The new display module unit is part of a wider plan by the company to diversify its operations. Beyond smartphones, Foxconn has shown interest in expanding into sectors like electric vehicles (EVs), batteries, and semiconductors.

At present, India imports most of its smartphone display modules from countries like China and South Korea. By setting up local production, Foxconn could help reduce these imports and bring down the cost of components for phone manufacturers.

As per the report, this move could also help brands shorten delivery times by reducing supply chain delays.

Globally, major players in the display module market include companies such as Samsung Display, BOE Technology, and LG Display. In India, however, local assembly is dominated by Chinese firms such as TCL CSOT and TXD (India) Technology.

One of the biggest hurdles for Foxconn will be sourcing components for the display modules. Currently, a large portion of these components are still imported from China, and reducing this reliance will take time.

Another challenge is the need to build a skilled workforce to manage the production of advanced display technologies.

Foxconn’s deeper investment in India aligns closely with Apple’s strategy to reduce its reliance on China.

As geopolitical tensions rise and supply chain disruptions continue, Apple is looking to diversify its production base, and India has emerged as a key part of this plan.

Apple already manufactures some of its iPhone models in India through partnerships with Foxconn and other suppliers, and this new display module facility will further cement its presence in the country.