Apple is aggressively shifting its supply chain to other markets to reduce its dependence on China. The US tech giant has multiple supply chain partners that manufacture and assemble its latest iPhones, iPads, Macs, and other Apple products. Strict measures to contain the spread of COVID-19 in China have forced Apple suppliers to move to other countries to assemble iPhones and other Apple products. Foxconn has multiple factories in India. An established Apple supplier. The supplier is already manufacturing the new iPhone 14 in India alongside other older iPhones.
India could be the next big hub for Apple's supply chain as Foxconn reportedly plans to quadruple, rather than double or triple, its workforce in India. It seems Foxconn plans to quadruple its workforce at its iPhone assembly plant in India over the next two years, according to a Reuters report.
The move comes after supply chain disruptions in China following successive lockdowns, COVID-19 restrictions and geopolitical issues. The world's largest iPhone manufacturing facility in Zhengzhou, China, has been hit by strict local government regulations. The impact has forced Apple to lower its shipping forecasts, resulting in a longer wait for the iPhone 14 Pro model.
After the disruption in the Chinese supply chain, Apple looked for alternative locations for its supplier partners to set up factories to make the new iPhones. China's defeat can be seen as a boon for India as the production of the new iPhone 14 was confirmed in India days after its release. In the past, Apple's supply chain partners produced the iPhone in India a few quarters after launch. This time, however, Apple confirmed that the iPhone 14
was manufactured in India within weeks of its launch.
iPhone 14s are said to be produced at Foxconn's Sriperumbudur factory on the outskirts of Chennai. iPhones manufactured here are sold in India and exported for global sale. As confidence grows in the Indian supply chain market, Foxconn plans to increase its workforce to 70,000. The company is likely to add 53,000 workers over the next two years. Although the overall strength does not match Zhengzhou's 2,00,000 employees, it is certainly a good start for India to see a new supply chain as a base. Especially when you consider that the Foxconn factory is quite new since it opened in India in 2019.
Foxconn has not officially confirmed plans to increase its workforce in India, but a Reuters report said the supplier shared details with Tamil Nadu government officials, citing government officials. The factory also makes products for other global tech companies, but the job surge is intended to meet growing demand for iPhones. Foxconn scales up production to meet base model demand in India. It's not clear if Foxconn or other Apple suppliers will soon assemble Pro models and other of its Apple products in India.