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  • Foxconn Subsidiary to Boost AirPods Production with Major Manufacturing Line Overhaul

    As it ramps up production of Apple AirPods, Foxconn Interconnect Technology (FIT), Hyderabad, a fully owned subsidiary of Taiwanese contract maker Foxconn, plans to increase its workforce and production lines over the course of the next six to eight months, as reported by ET.

    In April, the Kongara Kalan factory started producing AirPods on a commercial basis. As Foxconn expands its business outside of China, it is moving machinery out of its plants in Vietnam.

    In order to meet global demand, FIT plans to modernise five current production lines to create new AirPods models. According to the sources, FIT Hyderabad’s planned capacity will increase from the current projection of over 100,000 AirPods each month to 200,000.

    Apple Growing its Manufacturing Nexus in India

    The growth is consistent with Apple’s expanding domestic manufacturing ecosystem. In the first half of this fiscal year, Apple exported a record $10 billion worth of iPhones from India, up 75% from $5.71 billion in the same period last year, according to an October 8 ET story.

    According to the ET article, the FIT plant presently employs about 2,000 people, and in the next six to eight months, that number is expected to rise to 5,000. A lack of dysprosium, a direct outcome of China’s crackdown on the export of rare earth metals, has impeded the production of Apple’s AirPods at FIT’s Telangana factory, according to an ET story from July.

    When Beijing loosened export restrictions on essential minerals and rare earth metals in August, the bottleneck was lessened. The most recent models are the AirPods Pro 3, which were released in September of this year, and the AirPods 4, which were released in September of last year.

    FIT’s Hyderabad Factory and its Operations

    In addition to components like cables and connectors for many brands, FIT produces wearables like AirPods. The village of Kongara Kalan, located 15 km from the Hyderabad airport, is a part of a broader plan to increase the company’s production capacity and offer goods like true wireless stereo (TWS) earbuds to the Indian local market as well as the US and Europe.

    With the construction of the facility, the business established a new production hub for audio devices in India. A strategic strategy to diversify electronics manufacturing and create a more robust supply chain, particularly in new priority areas, is the investment in the Hyderabad factory.

    In order to serve its worldwide activities, FIT has been investing in new facilities in Vietnam for at least 16 years. Foxconn’s larger plan to diversify its supply chain and lessen its reliance on China includes the growth in Vietnam.

    Quicks Shots

    •FIT
    Hyderabad plans to upgrade five production lines to boost output of AirPods.

    •Monthly
    production set to rise from 100,000 to 200,000 units within six to eight
    months.

    •FIT
    Hyderabad workforce to grow from 2,000 to 5,000 employees to support ramp-up.

    •Kongara Kalan plant, operational
    since April, produces AirPods and TWS earbuds for India, US, and Europe.

  • L&T Semiconductor Partners with Foxconn to Develop High-Voltage Semiconductor Wafers

    According to reports, L&T Semiconductor Technologies and Hon Young Semiconductor, a subsidiary of contract maker Foxconn, inked a long-term agreement on 14 October to collaborate on the development of high-voltage semiconductor wafers. According to the Economic Times, the two businesses would create wafers for industrial and automotive applications with voltage ranges between 650V and 3,300V.

    The two will also “cooperate” to guarantee “wafer performance, quality, and scalability,” according to the article. According to a statement from the firm, the collaboration makes use of LTSCT’s integration skills and domain knowledge of automotive and industrial power solutions, as well as HYS’s extensive experience in wafer fabrication.

    According to reports, the collaboration will also make it possible for L&T Semiconductor to design and manufacture wafers specifically for power components using Hon Young Semiconductor’s facilities in Taiwan.

    L&T Semiconductor Technologies and its Operations

    L&T Semiconductor Technologies is a fully-owned subsidiary of Larsen & Toubro (L&T), an engineering, procurement, and construction (EPC) firm. The company that manufactures fabless semiconductors creates and supplies smart gadgets to clients worldwide. It seeks to develop a semiconductor portfolio for automotive, industrial, energy, and telecommunications sectors that includes power, analogue, mixed signal, and radio frequency products.

    This latest venture is L&T’s most recent attempt to establish a presence in the rapidly expanding Indian semiconductor market. In June, the domestic company partnered with Kaynes Semicon to pay INR 118.32 Cr to acquire the power modules division of Fujitsu General Electronics, a Japanese company.

    In order to design cutting-edge CPUs, L&T Semiconductor Technologies also inked a research and development (R&D) agreement with tech giant IBM in September of last year. The company had previously announced in July 2024 that it will pay INR 183 Cr to acquire a 100% share in semiconductor design startup SiliConch Systems.

    Foxconn Aggressively Expanding its Network in India

    Foxconn has been rapidly expanding its business in India. The business and HCL stated earlier this year that they would form a joint venture (JV) to establish an OSAT plant in Noida, Uttar Pradesh, to produce chips for computers, mobile phones, and cars. In the meantime, Foxconn’s primary business is the production of smartphones.

    The Taiwanese corporation has committed INR 15,000 Cr to expand its activities in the state, according to a statement made by Tamil Nadu Industries Minister TRB Rajaa just one day ago. This came after Foxconn’s plan to invest $2.2 billion in the US and India was approved by Taiwan’s Ministry of Economic Affairs.

    Nevertheless, Foxconn is among India’s biggest contract iPhone makers. The business shipped $3.2 billion worth of iPhones from India to the US between March and May. In 2025, it intends to produce 25–30 million iPhones in India.

    Quick
    Shots

    •L&T Semiconductor Technologies partners with
    Hon Young Semiconductor (Foxconn subsidiary).

    •Develop high-voltage semiconductor wafers for
    industrial and automotive applications.

    •Ensuring wafer performance, quality, and
    scalability.

    •Combines L&T’s automotive and industrial power
    expertise with Hon Young’s wafer fabrication experience.

  • Foxconn to Invest INR 15,000 Crore in Tamil Nadu, Creating 14,000 Jobs

    Tamil Nadu’s industries minister, TRB Rajaa, announced today that Foxconn, a Taiwanese contract manufacturing giant, would invest INR 15,000 crore in the state, generating 14,000 high-value jobs. The minister claims that this is the state’s biggest-ever commitment to engineering jobs and that it will greatly strengthen Tamil Nadu’s advanced manufacturing and electronics industries.

    In a post on the social media site X, Rajaa claimed that Tamil Nadu has the biggest engineering positions ever. Dedication to Tamil Nadu! Foxconn pledges 14,000 high-value jobs and INR 15,000 crore in investments! Prepare, engineers! According to Rajaa, Foxconn intends to introduce its next stage of sophisticated technology operations powered by AI, R&D integration, and value-added manufacturing to Tamil Nadu.

    Foxconn Affirms its Commitment in TN

    According to Raja, Robert Wu, Foxconn’s India representative, met with MK Stalin, the chief minister of Tamil Nadu, to reiterate the company’s faith in the state by presenting significant investment intentions. “As @CMOTamilNadu Thiru and @MKStalin Avargal met with Foxconn’s India Representative Robert Wu to reaffirm their deep trust in Tamil Nadu with substantial investment commitments,” he wrote in his post, adding that this was yet another significant boost for the state’s electronics and advanced manufacturing sector.

    The first-ever Foxconn Desk in India will be established by Guidance, the investment promotion agency of Tamil Nadu, to facilitate these initiatives. The minister referred to this desk as a step towards what he called the “Dravidian Model 2.0”, saying it will guarantee the seamless facilitation of projects and mission-mode implementation.

    Robert Wu Met Karnataka CM

    Following Robert Wu’s meeting with Karnataka Chief Minister Siddaramaiah in Bengaluru on 12 October, the announcement was made. They talked about strategies to increase Foxconn’s footprint in Karnataka and looked into new manufacturing and technological cooperation options during the discussion. Currently operating in Telangana, Karnataka, and Tamil Nadu, Foxconn’s new plans mark a significant expansion of its presence in India.

    In order to guarantee “seamless facilitation and mission-mode execution” of the company’s investments, the Foxconn Desk will be established within Guidance Tamil Nadu. According to Dr Rajaa, the news supports Tamil Nadu’s plan to increase the development of high-value jobs and highlights the state’s rising significance as a major electronics manufacturing hub in India.

    Quick Shots

    •Foxconn
    to invest INR 15,000 crore in Tamil Nadu.

    •The
    investment will generate 14,000 high-value engineering jobs.

    •AI-powered
    technology, R&D integration, and value-added manufacturing.

    •First-ever
    Foxconn Desk in India to ensure seamless project facilitation.

    •Tamil Nadu CM MK Stalin and Industries Minister TRB
    Rajaa emphasize mission-mode execution.

    •Foxconn already operates in
    Telangana, Karnataka, and Tamil Nadu, marking a major footprint expansion.

  • Apple Supply Chain Expands in Tamil Nadu with INR 30,000 Cr Investment, 60,000 Jobs Expected

    According to T. R. B. Rajaa, Tamil Nadu’s Minister for Industries, Investment Promotion, and Commerce, the state’s excellent infrastructure, talent pool, and governance are luring Apple suppliers and ecosystem companies to engage in component manufacture.

    State Incentives Boost Electronics Manufacturing

    To increase the production of electronic components, the state, which already has a number of suppliers for Apple ecosystem components, launched the Tamil Nadu Electronics Components Manufacturing Scheme in April.

    The government is providing state-level incentives that are equivalent to the advantages of the Union Ministry of Electronics and Information Technology’s Electronics Component Manufacturing Scheme in an effort to draw in more companies. This will provide competitive support for companies establishing operations in the state.

    INR 30,000 Cr Scheme to Generate 60,000 Jobs

    The project intends to generate approximately 60,000 new jobs and draw in investments totalling INR 30,000 crore. In an exclusive interview with Moneycontrol, Rajaa stated that bringing more of the Apple ecosystem to Tamil Nadu was his top aim when he took over in 2023, and he was successful in doing so during the year.

    Now it’s the other way around: as a result of the globalisation of the “Brand Tamil Nadu,” more Apple suppliers are contacting us. He went on to say that his government knew that this state had those kinds of skills. He said that people shouldn’t think of India when they think of Tamil Nadu; they should think of Tamil Nadu separately.

    This state is distinct due to its excellent infrastructure, skill pool, and greatly improved government. One of Apple’s major international suppliers, Foxconn, currently produces iPhones in Tamil Nadu for export to markets throughout the world, mainly the US. An important hub for Apple’s supply chain for manufacturing in India is now Tamil Nadu.

    Major Apple Suppliers Operating in Tamil Nadu

    Along with Foxconn, the state is home to important suppliers, including Jabil, which is establishing a sizable new facility in Trichy; Tata Electronics, which operates substantial iPhone and component facilities; and Pegatron, which is currently controlled by Tata Electronics. Other important participants are ON Semiconductor, Lingyi iTech (precision components), Corning (Gorilla Glass near Sriperumbudur), and Salcomp (chargers and components).

    Supported by special economic zones and government incentives, these businesses are mostly based in Hosur, the Sriperumbudur-Oragadam-Kancheepuram corridor, and recently Tiruchirapalli.

    Tamil Nadu’s Role in Apple’s China+1 Strategy

    According to analysts, the environment for electronics manufacturing in Tamil Nadu is still expanding quickly and is essential to Apple’s plan to diversify its supply chain outside of China. In FY2025, Tamil Nadu’s electronics exports reached a record high of $14.65 billion, or 41.2 percent of India’s total electronics exports. Through the program, it hopes to increase electronics exports from the current $14.6 billion to $50 billion over the course of the next three to four years.

    Future Plans: From Glass to Li-Ion Cells

    The government intends to localise the entire supply chain and venture into more intricate and valuable segments of the electronics value chain with the new program. The state will use the program to encourage the production of various components, including Li-ion cells, HDI/Flexi PCBs, sensors, camera/display modules and sub-assemblies, and SMD passive components.

  • Foxconn’s Telangana Plant Faces Rare Earth Shortage, Apple AirPods Production Impacted

    According to persons with knowledge of the situation, Foxconn‘s Telangana facility has been unable to produce Apple AirPods because of a dysprosium scarcity brought on by China’s crackdown on the export of rare earth metals.

    A little over forty-five kilometres from Hyderabad lies the Foxconn Interconnect Technology (FIT) facility at Kongara Kalan. FIT is a major subsidiary of Hon Hai Technology Group (Foxconn), a multinational electronics contract manufacturer based in Taiwan that is listed on the Hong Kong Stock Exchange.

    According to the Apple vendor, there has been no interruption in production. In April of last year, Apple started producing AirPods at the India facility as part of a larger plan to diversify production away from China. Neodymium, dysprosium, and other rare earth metals are present in the earphones. China and other countries mine neodymium, which is used as a magnet.

    What Caused the Rare Earth Shortage at Foxconn?

    According to one of the individuals quoted in a news report, Foxconn alerted the Telangana government about the supply problem. According to various media reports, the Telangana government then brought up the issue with the Department for Promotion of Industry and Internal Trade (DPIIT).

    The individual stated that Foxconn has requested assistance from the state government in order to have the end-user certificate (EUC) verified and attested by central ministries. The EUC confirms the intended purpose and recipient of products, particularly those that could be abused or diverted.

    Another stated, “As part of the process, Foxconn received the end-user certificate from the Chinese embassy and the Ministry of External Affairs.” Following that, Foxconn’s supplier applied to the Chinese authorities for approval of exports of dysprosium. However, the (Chinese) government has not yet approved it; thus, it is still waiting.

    The provider will export the rare earth metal after that is finished. Apple didn’t answer any questions. “There is no disruption to production,” Foxconn stated, adding that it “has no comment on the issue.”

    How the Supply Chain Bottleneck is Affecting Apple AirPods Production?

    Foxconn and Tata Electronics are two of Apple’s main suppliers in India. Apple’s largest contract manufacturer worldwide is Foxconn. An industry official stated, “The Foxconn AirPods plant did experience a production slowdown, but it appears to have improved since then.” “The company is currently handling the situation, but the metal supply chain is a little longer.”

    The second individual cited previously stated, “The Foxconn logistics team is anticipating approval by the end of this month.” ” The application must be approved within 45 to 50 days of the date of submission. Before they receive the extra material, Foxconn is extending the product cycle by using whatever rare earth metals and dysprosium they currently have on hand.

    China’s Export Curbs and Their Global Impact on Electronics

    In response to US President Donald Trump’s tariff threats, China put seven types of medium and heavy rare earths—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related items—on an export control list early in April.

    The India Cellular and Electronics Association (ICEA) advocacy group told the government that the restrictions were causing delays and cost inflation, according to an ET story on July 18. Foxconn reportedly recalled more than 300 Chinese engineers from its iPhone manufacturing facilities in India earlier this month, allegedly at Beijing’s request.

    At the time, experts stated that although Taiwanese professionals could potentially replace Chinese engineers, machinery and metals were the main cause for concern. They have stated that it is more difficult to maintain operations when those are curbed.

  • Govt Puts Dixon’s China-Linked JV Firms Under Scanner

    According to reports, the government will examine Dixon Technologies’ recent deals with Chongqing Yuhai and Kunshan Q Technology, two Chinese electronics companies, as well as other domestic electronics manufacturers.

    According to a media agency, an official told them that when their application falls under Press Note 3 regulations, proper process would be followed. According to Press Note 3 regulations, foreign investments from nations that share a land border with India—such as China, Afghanistan, Pakistan, Nepal, Bhutan, Bangladesh, and Myanmar—must have government clearance.

    Dixon Signing Agreement with Chinese Firms

    Dixon reportedly signed contracts with two Chinese electronics component companies, Chongqing Yuhai Precision Manufacturing and the Indian branch of Kunshan Q Technology, just two days ago.

    The agreements cover the production and distribution of electronic components used in various electronic devices, including laptops and mobile phones. According to the agency, Dixon intends to form a joint venture with Chongqing Yuhai to manufacture and supply precision components for laptops, mobile phones, the Internet of Things, automobiles, and other products.

    Dixon is expected to own 74% of the JV, with Chongqing owning the remaining shares. Dixon also inked a legally binding agreement with Kunshan Q Tech Microelectronics India (often referred to as Q Tech India) and its shareholders, Kunshan Q Technology International and Q Technology Singapore, for the proposed purchase of a combined 51% stake in Q Tech India.

    Dixon also waited for the Indian government’s consent more than a month ago before pursuing a cooperation with China’s HKC for its display module manufacturing facility.

    Foxconn Already Replaced Chinese Engineers with US and Taiwan Specialists

    The multinational electronics powerhouse Foxconn has already devised a different strategy to save its iPhone 17 production in India by bringing in specialists primarily from Taiwan and the US.

    This development comes a day after it was revealed that Beijing had “forced” Foxconn Technology Group to return its Chinese engineers and technicians from its Tamil Nadu plant. Recalling workers is perceived as a tactic to thwart Western IT companies’ attempts to move their manufacturing out of China.

    Additionally, it is perceived as an extension of the diplomatic dispute between China and India. The export of essential machinery needed to upgrade assembly lines to produce the iPhone 17, which is anticipated to be released by September of this year, was already being restricted by Chinese officials.

    As anticipated, a media article stated that Foxconn already had a strategy to hire engineers primarily from the US and Taiwan. Furthermore, the problem only relates to the upcoming debut of the new iPhone 17 series.

    For earlier versions, Indian technicians are already in charge. The replacement of the Chinese experts might take up to two months. The Ministry of Electronics and Information Technology (Meity), according to the report, stated that Foxconn and Apple have been aware of the potential loss of Chinese engineers for the past four to five months.

    The import of essential equipment can still be an issue even if technicians are replaced. The iPhone 17’s price may rise as a result. However, according to industry experts, the average compensation for a US expert is approximately six times that of a Taiwanese expert.

    Further, the average compensation for a Taiwanese expert is approximately 50–60% higher than that of a Chinese engineer. This could result in an increase in the production costs for the company.

  • Foxconn India Faces Turmoil as Chinese Engineers Exit

    Hundreds of Chinese engineers and technicians employed at Foxconn’s facilities, Apple’s primary supplier, were urged to leave as the company prepared to increase manufacturing of its next flagship iPhone in India.

    According to various media reports, more than 300 highly qualified employees have left Foxconn’s iPhone factories in southern India. Although neither Apple nor Foxconn have made a formal statement, the timing and lack of response say a lot.

    This advancement goes beyond a simple reorganisation of personnel. It coincides with rising tensions between Beijing and Western tech companies that are moving their manufacturing out of China, as well as the India-China border issue.

    The loss of skilled Chinese technical employees is a blow to Apple, which has made significant investments to increase its manufacturing presence in India. In addition to putting devices together, these experts trained Indian workers and imparted decades of process knowledge developed inside Chinese mega-factories.

    Chinese Government Clamping Down on Various Elements to Hamper the Production

    In recent months, China’s crackdown on the exodus of talent, equipment, and technology has intensified.

    A media source claims that the Chinese government has gently persuaded businesses and authorities to limit the flow of talented workers to countries like India and Southeast Asia and to cease exporting vital equipment.

    It appears that the goal is to slow down the “China plus one” method that global corporations are using to protect themselves from geopolitical risk.

    China has tightened control over APIs for the global pharmaceutical supply chain, limited exports of rare earth magnets used in electric vehicles, and, now, through its hold on Foxconn, has started to repress talented mobile manufacturing workers. Trade friction is no longer the only issue. Supply chain resistance is the cause.

    Foxconn Swaps Chinese Engineers for U.S., Taiwan Specialists Amid Strategic Shift

    The multinational electronics powerhouse has devised a different strategy to save its iPhone 17 production in India by bringing in specialists primarily from Taiwan and the US.

    This development comes a day after it was revealed that Beijing had “forced” Foxconn Technology Group to return its Chinese engineers and technicians from its Tamil Nadu plant. Recalling workers is perceived as a tactic to thwart Western IT companies’ attempts to move their manufacturing out of China.

    Additionally, it is perceived as an extension of the diplomatic dispute between China and India. The export of essential machinery needed to upgrade assembly lines to produce the iPhone 17, which is anticipated to be released by September of this year, was already being restricted by Chinese officials.

    As anticipated, a media article stated that Foxconn already had a strategy to hire engineers primarily from the US and Taiwan. Furthermore, the problem only relates to the upcoming debut of the new iPhone 17 series.

    For earlier versions, Indian technicians are already in charge. The replacement of the Chinese experts might take up to two months. The Ministry of Electronics and Information Technology (Meity), according to the report, stated that Foxconn and Apple have been aware of the potential loss of Chinese engineers for the past four to five months.

    The import of essential equipment can still be an issue even if technicians are replaced. The iPhone 17’s price may rise as a result. However, according to industry experts, the average compensation for a US expert is approximately six times that of a Taiwanese expert.

    Further, the average compensation for a Taiwanese expert is approximately 50–60% higher than that of a Chinese engineer. This could result in an increase in the production costs for the company.

    India Benefiting from US-China Trade Tension

    Trade conflicts between the US and China, which started under former President Donald Trump, are the direct cause of Apple’s entry into India.

    These tensions have now developed into strategic actions on both sides, with China retaliating with limits on technology, talent, and raw materials and the United States providing tax incentives and trade agreements to nations like Vietnam and India.

    Though it might not seem as dramatic, China’s most recent action might be just as destructive as a trade battle. The risk is growing on both sides for Apple, which intends to manufacture the majority of iPhones for the US in India by 2026.

    Trump has once again called on Apple to “make in America” in his most recent campaign speech. However, Apple has so far steered clear of that route due to the high cost of US labour and a lack of experience with large-scale manufacturing.

    Now that China is exerting pressure behind the scenes, even Apple’s backup plan in India can encounter difficulties.

    In the months preceding the release of the iPhone 17, it will become evident if China has successfully halted the changing axis of tech manufacturing or whether Apple can withstand the transition without compromising its production targets.

  • Scheme to Boost Electronic Component Production Draws 70 Applications

    According to reports, the government has received 70 applications for its project to manufacture electronics components worth INR 22,919 Cr. The development was confirmed by Union Minister Ashwini Vaishnaw, who also noted that small and medium-sized businesses make up the majority of the applications.

    Vaishnaw informed a news source that the plan to manufacture electronics components has been well appreciated. About 70 applications have been received in the 15 days after the application was opened.

    This production-linked incentive (PLI) programme for non-semiconductor electronics components was approved by the union cabinet in March. The plan is to draw in INR 59,350 Cr in investment, which will lead to INR 4,56,500 Cr in output and the creation of 91,600 new direct jobs in addition to numerous indirect positions. With a one-year gestation period, the system has a six-year duration.

    A portion of the incentive’s payout is also correlated with meeting employment goals. The government stated when the plan was approved that it offers Indian manufacturers unique incentives designed to help them overcome particular obstacles for different types of parts and sub-assemblies, enabling them to develop technological capabilities and realise economies of scale.

    Scheme will Benefit Various Sector

    The initiative is expected to help industries like telecommunications, consumer electronics, automotive, and medical devices. Vaishnaw also announced last month that the scheme’s online portal would soon be activated and that the guidelines had been finalised.

    Global manufacturers Foxconn, Tata Electronics, Zetwerk, and Dixon are reportedly considering investments in India via the PLI scheme, despite the fact that the initiative’s investors have not been made public. These multinational corporations are planning their manufacturing hubs in collaboration with various states.

    For example, Foxconn, Apple’s biggest contract manufacturer, has already established a display module assembly facility in Tamil Nadu and begun conducting trial runs. Additionally, the “Tamil Nadu Electronics Components Manufacturing Scheme (ECMS)” was introduced a few weeks ago by Tamil Nadu Chief Minister MK Stalin. This plan seeks to create 60,000 jobs in the state and draw in investments of INR 30,000 Cr.

    Gujarat and UP Scaling Up Efforts to Lead the Race

    According to various media reports, Gujarat and Uttar Pradesh are also vying to become major centres for the production of electronics. Uttar Pradesh is working on a draft policy that might be finished in a few weeks, while Gujarat has presented a draft policy to encourage and expand the manufacturing of electronics components.

    Finance Minister Nirmala Sitharaman stated during her 2025–2026 budget speech that the government is prepared to provide the local electronics equipment industry with a much-needed boost. India produced electronics worth INR 9.52 Lakh Cr in FY24 compared to INR 1.90 Lakh Cr in FY15, according to the Economic Survey 2024–25.

  • India’s Sixth Chip Unit: HCL-Foxconn JV Gets Cabinet Nod for Jewar Plant

    India’s sixth semiconductor plant, a INR 3,706 crore facility that would be established in Jewar, Uttar Pradesh, through a joint venture between HCL and Foxconn, was authorised by the Union Cabinet on 14 May.

    The facility will begin producing display driver chips for PCs, laptops, cars, and cell phones in 2027. The monthly production capacity of the factory is 20,000 wafers. The monthly production capacity of the design is 36 million pieces.

    There are now five semiconductor units at advanced phases of development. According to a national government statement, India advances in its efforts to grow the strategically important semiconductor sector with the establishment of this sixth facility.

    Semiconductor Industry Now Shaping Up in India

    The nation’s semiconductor sector is currently taking shape. Several states in the nation now have top-notch design facilities. The design businesses are being actively pursued by state governments.

    The central government also stated that this new unit will contribute to the Prime Minister’s vision of Atmanirbhar Bharat, given the growing demand for semiconductors due to the rapid growth of the manufacturing of laptops, mobile phones, servers, medical devices, power electronics, defence equipment, and consumer electronics in Bharat.

    HCL, however, has a lengthy history of creating and producing hardware. Foxconn is a significant global manufacturer of electronics.

    Alluring Sector for Entrepreneurs, Researchers and Students

    In order to create new goods, students and entrepreneurs from 70 businesses and 270 academic institutions are working on cutting-edge design technology. Twenty of the items created by these students have been recorded by SCL Mohali.

    The ecosystem partners have also set up shop in India as the nation advances in its semiconductor journey. Lam Research and Applied Materials are two of the biggest producers of equipment. Both are currently present in India.

    Many gas and chemical providers, like Linde, Inox, Air Liquide, and Merck, are preparing for the expansion of India’s semiconductor sector.

    Government data shows that the nation’s electronics manufacturing production has increased fivefold during the last ten years.

    The government is getting closer to its objective of raising value addition in electronics from the current 20% to over 35% by 2030 with the addition of this unit under the ISM. IT minister Ashwini Vaishnaw has mentioned about this goal numerous times.

    Foxconn is attempting to establish a semiconductor unit under the ISM for the second time. The Taiwan-based business partnered with Vedanta in 2023, but the two parties eventually parted ways.

    According to the minister, the Foxconn-HCL factory should satisfy Foxconn’s worldwide supply chain requirements and meet 40% of India’s domestic demand for display driver chips.

  • India’s Tata Facility Starts Producing iPhones

    A second Foxconn facility in Bengaluru is preparing to begin shipments as early as next month, while Apple has begun production at a brand-new Tata Electronics plant in Tamil Nadu.

    Given the growing trade tensions between Washington and Beijing, these events represent a significant step in Apple’s strategy to diversify its supply chain and lessen its dependency on China.

    Apple is acting quickly to protect itself from the threat of new US tariffs on Chinese imports, some of which are reportedly above 100%.

     Although the US administration has indicated that this could change in the upcoming weeks, the corporation has so far been exempt from the worst of the trade war tariffs on electronics. India is now a vital component of Apple’s worldwide jigsaw because of this uncertainty.

    iPhone’s Production in India is Scaling Up

    Older iPhone models are now being produced on a single line at the new Tata plant in Hosur, southern India.

    According to media reports, Foxconn’s impending $2.6 billion factory in the capital of Karnataka is anticipated to begin trial production of the iPhone 16 series soon. When fully operational by the end of 2027, the plant is expected to create about 50,000 jobs and be able to produce between 300 and 500 iPhones per hour at full capacity.

    Apple Moving Away from China

    There is more to Apple’s intention to increase its manufacturing presence in India than merely reacting to trade constraints. It’s a calculated restart. India now produces around 18% of the world’s iPhones, compared to China’s more than three-quarters, according to Counterpoint Research. And Apple wants a big increase in that share.

    By the end of 2026, the tech giant plans to move the majority of iPhones headed for the US to Indian factories. That urgency is supported by the numbers. Apple delivered a record 600 tonnes of iPhones to the US from India in March alone, totalling an incredible $2 billion. More than half of that volume came from Foxconn.

    Despite being a relatively new supplier to Apple, Tata has become a significant player. With these additional facilities, Apple now has five significant plants in India that are jointly operated by Tata and Foxconn.

    A media report claims that the factory where the iPhone 16 and 16e models will be constructed can generate between 300 and 500 iPhones per hour.

    China has lost around $150 billion in electronics exports to the US, giving nations like Mexico, Vietnam, and India the chance to profit from the redirected investment and production.

    Another benefit for Apple is that the minimum wage in China is significantly lower than that in the US, at about $2.10 per hour. However, as businesses look for alternatives to China, India is becoming more and more appealing due to its even lower labour costs.