Foxconn, the Taiwanese electronics giant, is considering a $1 billion investment to establish a smartphone display module assembly unit in Tamil Nadu, as reported by The Economic Times. This facility will be Foxconn’s first of its kind in India and aims to support Apple’s iPhone production.

The new assembly unit is set to enhance local sourcing capabilities, allowing manufacturers like Pegatron and Tata Electronics to procure components domestically, reducing reliance on imports from China. Foxconn has already secured around 500,000 sq ft at the ESR Oragadam Industrial & Logistics Park, located adjacent to its existing smartphone assembly plant near Chennai.

Industry experts believe that this venture will bolster India’s position in the electronics assembly and manufacturing value chain. Tarun Pathak, research director at Counterpoint, noted that while phone assembly contributes about 5% local value, display assembly could add an additional 2-3%.

Foxconn is also expanding its operations to assemble Google Pixel phones in India, reflecting a strategic effort to streamline production. Currently, the country heavily depends on imports for display components, with 60-65% of these coming from China and South Korea providing another 20-25%. Local assembly of display modules could significantly shorten supply cycles and reduce costs.

Key players in the global display module market include Samsung Display, BOE Technology, LG Display, and AU Optronics. In India, TCL CSOT and TXD Technology are the largest assemblers, serving major brands like Samsung, Xiaomi, Vivo, and Oppo.

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