Foxconn, Apple’s largest contract supplier, is building two large hostels which can cumulatively accommodate up to 60,000 workers near its manufacturing facility near Chennai.
Growing base in India
Construction is underway at the 20-acre plot for large hostel blocks as part of company plans to expand its production capacity for Apple devices in India.
This move comes as exports surge from India owing to the diversification of global supply chains away from China.
Upcoming spike in headcount numbers
The manufacturer currently employs nearly 15,000 workers at its Chennai facility.
This figure could exceed 70,000 over the next 18 months.
A 20,000-bed hostel should be ready in about ten months and when ready, the two hostels will be large enough to house around 60,000 people.
Food and medicine to be provided
The company is also building two new manufacturing facilities at its campus.
Along with accommodation, Foxconn will also make provisions for food and medicine as it has followed in China.
Reducing reliance on China
The development is part of the Apple supplier’s plans to move its base away from China.
It recently faced massive disruptions at the Zhengzhou plant, the world’s largest iPhone production facility.
India to overtake China by 2025
Meanwhile in India, Apple has seen a notable improvement in its domestic sales accompanied by a surge in exports of devices manufactured in the country.
Even though most of the world’s iPhones are currently manufactured in China, analysts say that India will have replaced China as the top producer of the devices by the year 2025.
According to a JP Morgan report, Apple wants to manufacture 25% of all iPhones in India by 2025, from 5% currently, in a bid to diversify supply chains.
Building semiconductors in India
Foxconn also has plans to invest up to $500 million in India for the production of semiconductors with Vedanta.
It recently signed an agreement with Gujarat to develop a $20-billion semiconductor and display fab unit.
Foxconn will contribute its technological knowledge to the operation, while Vedanta will finance the project.
Capital and electricity costs will both be subsidized by the state of Gujarat.
