Foxconn Plans $1 Billion Investment in Smartphone Display Assembly in Tamil Nadu

Taiwanese electronics giant Foxconn is considering an investment of approximately $1 billion to establish a smartphone display module assembly unit in Tamil Nadu. This would be Foxconn's first such facility in India, primarily aimed at supplying Apple for iPhone production.
The new facility will enable other manufacturers, such as Pegatron and Tata Electronics, to source components locally instead of relying on imports from China. Foxconn has already acquired around 500,000 square feet at the ESR Oragadam Industrial & Logistics Park, adjacent to its existing smartphone assembly plant near Chennai.

Industry experts believe this venture will enhance India's role in the electronics assembly and manufacturing value chain. Tarun Pathak, research director at Counterpoint, noted that while smartphone assembly contributes about 5% local value, display assembly could add an additional 2–3%. The degree of local value addition will be significant for the industry.
Foxconn is also expanding its operations to assemble Google Pixel phones in India, indicating a strategic effort to streamline production. The company is rapidly growing its smartphone operations in the country and is exploring opportunities in sectors like electric vehicles, semiconductors, ICT, and batteries.
A consulting firm executive emphasized that local assembly of display modules is a crucial step, as India currently relies heavily on imports, which raises costs and creates supply chain challenges. It is estimated that 60–65% of display module imports come from China, with South Korea providing an additional 20–25%. By manufacturing display modules locally, companies can reduce supply cycles, lead times, and overall costs.