Foxconn Pours In $350Mn In Chennai Unit To Make iPhones But Protests Compels To Look Towards China

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The protest has had a butterfly effect in neighbouring country China where Foxconn is reportedly expanding its recruitment at several plants in the Chinese mainland with higher wages and bonuses

Taiwanese contract electronics manufacturer Foxconn Technologies has reportedly invested a sum of $350 million in expanding its Sriperumbudur unit in India as it looks to begin manufacturing Apple’s iPhones in the country.

As per Taiwanese media reports, the Apple assembler is spending the sum to as part of its long-term development in the country. It would be used to set up a new production line exclusively for the assembly of the iPhone 13 series. Foxconn is Apple biggest manufacturer.

The production has already reached trial stage, while commercial production is likely to begin in February, according to industry sources.

The company had manufactured iPhone XR, 11 and 12 models in the Chennai unit.

This comes in the backdrop of a workers’ protest at the same unit following a food poisoning incident this month which forced the factory to shut temporarily since 18 December. It is set to reopen on December 30, is growing bigger in India after the state government instructed Foxconn to improve the temporary employees’ working and living conditions.

Ripple Effect In China

The protest, however, has had a butterfly effect in neighbouring country China where Foxconn is reportedly expanding its recruitment at several plants in the Chinese mainland with higher wages and bonuses.

As per industry experts, the company took such a move as the incident highlighted growing risks and challenges for foreign companies in the Indian market, while the Chinese industry chain remains stable. This could pose disruptions to the company’s shipment of the iPhone13 series and other products.

This could pose a challenge to India’s plans to attract more international big players into its manufacturing gambit amid ongoing tensions with China.

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