Foxconn Plans iPad Assembly Expansion In Tamil Nadu, India

Foxconn was established in Taiwan in 1974. Hon Hai Technology Group is the world’s biggest electronics manufacturer. Foxconn is also providing a leading technological solution, continuously leveraging its expertise in software and hardware to integrate unique manufacturing systems with emerging technologies. Foxconn has expanded its capabilities into developing electric vehicles, digital health, and robotics, as well as focusing on three key technologies—artificial intelligence (AI), semiconductors, and new-generation communications technology—crucial for its long-term growth strategy and the four core product pillars: smart consumer electronics, cloud and networking, computing products and components, and others. By 2023, Hon Hai’s annual revenue would have reached USD 198 billion. The company continuously receives recognition and achieves success, reflecting its commitment to innovation, excellence, and employee satisfaction. Foxconn’s relentless pursuit of technological advancement and fostering a favorable working atmosphere have unquestionably led to its remarkable rankings and honors.  The company has established manufacturing, research, and development centers in various markets around the world, including China, India, Japan, Vietnam, Malaysia, the Czech Republic, and the US. The company’s own research and development efforts have led to the acquisition of over 57,729 patents.

Foxconn iPad journey from China to Vietnam and now India:

Foxconn is planning to diversify its iPad production in China. Last year, they started in Vietnam, and now they are in India. Apple is also focusing on the domestic Indian market, with annual iPad shipments expected to reach 49 million this year, a 4.5% increase from last year. India’s reduction of the Basic Customs Duty from 20% to 15% on components is expected to expedite these manufacturing plans. 

Foxconn is also set to begin manufacturing AI servers and potentially Google’s Pixel smartphones at the Sriperumbudur plant. Additionally, a mega factory outside Bengaluru will primarily focus on iPhones. This move will significantly enhance India’s position in the global supply chain for high-end electronics, benefiting from local incentives and a growing domestic market.

Foxconn Fortune Global 500 rankings:

The company ranked 27th on the Fortune Global 500 rankings in 2023 and 25th in the Top 100 Digital Companies in the Forbes ranking of the World’s Best Employers in 2019. Additionally, in Forbes’ World’s Best Employers 2021 rankings, the company secured the first position in Taiwan. Foxconn is also the only Taiwanese private company to be honored for 7 consecutive years as a Clarivate Top 100 Global Innovator (2018–2024). Foxconn has also completed 50 years since its establishment in 1974.

Foxconn June 2024 Revenue Overview:

Foxconn reported unaudited consolidated revenue of NT$ 490.7 billion for June 2024, down 10.8% MoM but up 16.07% YoY. Revenue in June reached the second highest level for the same period. (June 2022 ranked the highest with NT$ 526.2 billion.) Revenue in the second quarter of 2024 was NT$ 1,551.8 billion, up by 17.37% QoQ and 19.12% YoY. Cumulative revenue in the first six months of 2024 was NT$ 2,873.9 billion, up 3.92% YoY to the second highest level for the same period. (The first six months of 2022 ranked the highest with NT$ 2,918.6 billion.)

Conclusion: Foxconn’s diversification move for the iPad will position India to become a key player in the global market for iPad production and supply, following its success with the iPhone.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.