Apple supplier Foxconn plans to add 53,000 more workers at its iPhone factory in India over two years, government officials said, as it faces disruptions in China.
Manufacturing at Foxconn’s Zhengzhou plant in China, the world’s largest Apple iPhone factory, is facing disturbances as a result of China’s virus policy. Foxconn’s Zhengzhou plant employs 200,000 workers, Reutres news report said.
The disruptions prompted Apple to lower its forecast for shipments of the premium iPhone 14 models this week, dampening its sales outlook for the busy year-end holiday season.
Taiwan-based Foxconn plans to boost the workforce at its manufacturing plant in southern state of Tamil Nadu to 70,000 by adding 53,000 more workers over the next two years. The plant in Tamil Nadu is central to Apple’s efforts to shift production away from China.
Foxconn opened the India plant in 2019 and has been ramping up production. It began producing iPhone 14 this year.
Foxconn Chairman Liu Young-way said on an earnings call on Thursday the company would adjust its production capacity and output so there was no impact from further potential disruptions on supplies for the Christmas and Lunar New Year holidays.
Foxconn has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China.
Beyond iPhones, the plant also manufactures products for other global tech firms, but the new hiring push is mainly driven by its need to meet growing iPhone demand.
On Oct. 27, the state’s investment promotion arm tweeted that top government officials had travelled to Taiwan and met Liu. They had discussed Foxconn’s plans for new ventures and investments and offered the government’s support.
Currently, iPhones are assembled in India by at least three of Apple’s global suppliers: Foxconn and Pegatron in Tamil Nadu; and Wistron in nearby Karnataka state.
JP Morgan analysts estimated in September that Apple may make one out of four iPhones in India by 2025, and 25 percent of all Apple products, including Mac, iPad, Apple Watch and AirPods, will be manufactured outside China by 2025 from 5 percent currently.