Foxconn eyes $1 bn investment for smartphone display assembly in Tamil Nadu

Taiwanese electronics manufacturer Foxconn is considering an investment of around $1 billion to set up a smartphone display module assembly unit in Tamil Nadu, according to a report by The Economic Times.

This would mark Foxconn’s first such facility in India, aimed primarily at supplying Apple for its iPhone production. The facility is expected to follow a model that would allow other manufacturers, such as Pegatron or Tata Electronics, to source components locally instead of importing display modules from China.

The report quoted a source as saying that Foxconn has acquired around 500,000 sq ft at the ESR Oragadam Industrial & Logistics Park, located next to its smartphone assembly plant near Chennai.

Industry experts believe that Foxconn's new venture will elevate India's position in the electronics assembly and manufacturing value chain.

The report quoted Tarun Pathak, research director at Counterpoint, as saying that while phone assembly adds about 5 per cent local value, display assembly could add an additional 2–3 per cent. The extent of value addition happening within India will be crucial.

Foxconn’s expansion into assembling Google Pixel phones in India is seen as a strategic move to streamline the production process. The Taiwanese company is rapidly growing its smartphone operations in India and is also setting its sights on industries like electric vehicles, semiconductors, ICT, and batteries.

An executive from a consulting firm noted that assembling display modules locally is a "significant" step, as India currently relies heavily on imports for display components, leading to higher input costs and supply chain challenges. The executive estimated that 60–65 per cent of display module imports, and up to 90 per cent in certain segments, come from China, with South Korea as the second-largest supplier at 20–25 per cent. By assembling display modules locally, manufacturers can shorten supply cycles and reduce lead times and costs.

Key players

Key global players in the display module market include Samsung Display (South Korea), BOE Technology (China), LG Display (South Korea), Tianma Microelectronics (China), AU Optronics (Taiwan), and Japan Display (Japan). In India, the largest smartphone display module assemblers are TCL CSOT in Tirupati, Andhra Pradesh, and TXD (India) Technology in Bawal, Haryana. CSOT assembles modules for Samsung and Xiaomi, while TXD serves Vivo and Oppo.