File photo of Tamil Nadu Chief Minister M K Stalin, Foxconn Chairman Young Liu and Tamil Nadu Minister of Industries TRB Rajaa
Credit: PTI Photo
Chennai: Yuzhan Technology (India) Pvt Ltd, an arm of Taiwanese electronics major Foxconn, will invest over Rs 13,000 crores in Tamil Nadu to manufacture components for smartphones, primarily to cater to Apple Inc.
The proposal was approved by the Tamil Nadu Cabinet, which met on Tuesday to clear 14 new industrial projects with an investment of Rs 38,698 crore, that would generate 46,931 jobs, a statement from the state government said.
Sources told DH that Yuzhan’s manufacturing unit will come up at the ESR Industrial Park in Oragadam near Sriperumbudur, where Foxconn currently operates its largest facility outside China and employs over 41,000 people, assembling Apple iPhones.
The company had earlier this year leased about 5 lakh square feet area in ESR park. “Yuzhan Technology (India) Pvt Ltd will invest Rs 13,180 crores and provide jobs to 14,000 people,” the state government’s statement said, without spelling out details.
A source in the know said Yuzhan will manufacture various components for mobile phones, notably display modules, to reduce the dependence on import of such materials from China.
“The facility will primarily cater to Foxconn’s client, Apple, and will roll out components that go into iPhones. Not just display modules, but several other parts will also be manufactured from here,” the source said.
Display modules and other key components being made in India will come as a big boost to the electronics ecosystem in Tamil Nadu which is home to almost all key suppliers of Apple like Pegatron, Salcomp, Tata Electronics, who already have massive production units.
“This investment is part of our efforts to move up the value chain from electronics manufacturing services (EMS) to component manufacturing. Production of display modules in Tamil Nadu shows Apple’s trust in the state’s ecosystem and human resource,” another source said.
The development comes as Apple ramps up assembling iPhones in India through Foxconn and Pegatron, while Tata is building an exclusive plant in Hosur to assemble Apple phones.
The Economic Survey 2024, tabled in Parliament in July, said 14 percent of the global iPhones worth $14 billion are assembled in India, making the country an integral part of Apple’s manufacturing network.
Two more Apple suppliers, Corning that produces finished cover glass for iPhones, and Jabil, are also moving towards building manufacturing units in Sriperumbudur and Tiruchirapalli respectively.