Complementing Apple’s diversification strategy away from China, Foxconn aims to tap into India’s growing supply chain, planning to assemble Apple’s iPad in Tamil Nadu.
Foxconn’s plan to assemble Apple’s flagship tablet iPad in India marked a significant expansion of its operations focused on making iPhones. The Taiwanese contract manufacturer may begin assembling iPads at its facility in Tamil Nadu’s Sriperumbudur, which will show confidence in India’s rapidly expanding supply chain for Apple’s iconic products.
Expanding iPad production in India is primarily aimed at diversifying supply chain risks. Foxconn will also gain from India’s production-linked incentives (PLI 2.0 for IT Hardware), which includes tablets, as it aggressively increases its investments in India.
The recent reduction of the Basic Customs Duty (BCD) in the Budget from 20% to 15% on components is also expected to expedite domestic manufacturing plans. If these plans materialise, Foxconn is likely to start assembling iPads in the second half of next year.
India has reached Completely Knocked Down (CKD) levels with iPhones, but an industry source said iPads would likely have to start with Semi-Knocked Down (SKD) for some time before reaching CKD levels. In manufacturing, CKD refers to a product that is assembled from a kit of parts, while SKD means the product is partially assembled and requires further assembly before it can be used.
