Foxconn, an Apple supplier, is set to quadruple its staff at its iPhone manufacturing units in India over the course of two years, indicating a production shift as it deals with interruptions in China. The supplier has been in news recently due to its rigorous virus restrictions at its Zhengzhou plant, the largest iPhone manufacturer in the world, which have disrupted production and raised questions about how China’s virus-related policies would affect global supply chains. This week, Apple cut down its expectation for shipments of the high-end iPhone 14 models due to the delays, which slowed down the company’s forecast for sales during the lucrative holiday shopping season.
Taiwan-based Foxconn now intends to strengthen its workforce at its plant in southern India to 70,000 by adding 53,000 more workers over the next two years, said the sources, who chose to stay anonymous. Although Foxconn’s Zhengzhou plant, which employs 200,000 people, dwarfs Apple’s Tamil Nadu plant in terms of size, it is imperative for Apple to move production away from China.
Foxconn, previously known as Hon Hai Precision Industry Co Ltd, opened the India plant in 2019 and has since been ramping up production. It began producing iPhone 14 this year.
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The company’s chairman Liu Young-way said on Thursday that the company would alter its production capacity and output so there is no impact from future potential disruptions on supplies for the Christmas and Lunar New Year holidays.
Currently, iPhones are assembled in India by at least three of Apple’s global suppliers: Foxconn and Pegatron in Tamil Nadu; and Wistron in Karnataka.
(With inputs from agencies)
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